Reference no: EM133002258
The following information pertains to the most recent quarter at Precious Production Limited.
Purchases of raw materials $387,000
Raw materials inventory, beginning 47,200
Raw materials inventory, ending 77,000
Depreciation, factory 213,000
Insurance, factory 21,800
Direct labour 252,600
Maintenance, factory 127,200
Administrative expenses 294,400
Sales 2,232,000
Utilities, factory 117,000
Supplies, factory 4,180
Selling expenses 336,200
Indirect labour 272,600
Work in process inventory, beginning 28,900
Work in process inventory, ending 123,600
Finished goods inventory, beginning 42,700
Finished goods inventory, ending 170,800
Required:
Problem 1. Prepare a schedule of cost of goods manufactured.
Problem 2. Prepare an income statement.
Problem 3. Assume that the company produced the equivalent of 17,000 units of product during the year. What was the average cost per unit for direct labour? What was the average cost per unit for factory insurance? (Round your answers to 2 decimal places.)
Problem 4. Assume that the company expects to produce 19,000 units of product during the coming year. What average cost per unit and what total cost would you expect the company to incur for direct materials at this level of activity? For factory insurance? (In preparing your answer, assume that direct materials is a variable cost and that insurance is a fixed cost; also assume that insurance is computed on a straight-line basis.) (Do not round intermediate calculations. Round "Average cost per unit" answers to 2 decimal places.)
Problem ?5. Assuming the company produced 25,000 fully and partially finished units during the year, determine the cost components of the finished goods inventory, which is composed of 5,000 finished units.