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Steuben Company produces dog houses. During the current year, Steuben Company in

ID: 2329144 • Letter: S

Question

Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs: Rent on manufacturing facility S 250,000 Office manager's salary Wages of factory machine operators Depreciation on manufacturing equipment Insurance and taxes on selling and administrative offices Direct materials purchased and used Produced 5000 Units/Sold 4000@$150 150,000 110,000 50,000 30,000 170,000 A) Total DL B) Total DM C) Total MOH D) Total Product Cost E) Total Period Cost F) Average Cost G) Total COGS H) Gross Margin 1) Net income

Explanation / Answer

All Calculations are part of Answer

Cost of Goods Manufactured

Total

Per Unit

Direct material

$ 170,000.00

$     34.00

Direct Labor

$ 110,000.00

$     22.00

Manufacturing Overheads

$            -  

Rent on Manufacturing facility

$ 250,000.00

$     50.00

Depreciation on Manufacturing Equipment

$    50,000.00

$     10.00

Total Manufacturing Overheads

$ 300,000.00

$     60.00

Total Cost of Goods Manufactured

$ 580,000.00

$ 116.00

Cost of Goods Sold Schedule

Beginning finished Inventory

$                    -  

Cost of Goods Manufactured

$ 580,000.00

Less: Ending Finished Goods Inventory

$ 116,000.00

Cost of Goods Sold

$ 464,000.00

Cost of Goods Sold

Finished Goods Inventory

Number of Units

             4000

           1000

Cos per Unit

$          116.00

$          116.00

Total cost

$ 464,000.00

$ 116,000.00

Calculation of Period Cost

Office Manager's Salary

$ 150,000.00

Insurance and taxes on selling and Administrative offices

$    30,000.00

Total Period Cost

$ 180,000.00

Income Statement

Sales

$ 600,000.00

Cost of Goods Sold

$ 464,000.00

Gross Profit

$ 136,000.00

Operating Expenses

$ 180,000.00

Net income

$ (44,000.00)

Answers

A)

Total Direct Labor

$ 110,000.00

B)

Total Direct Material

$ 170,000.00

C)

Total Manufacturing Overheads

$ 300,000.00

D)

Total Product Cost

$ 580,000.00

E)

Total Period Cost

$ 180,000.00

F)

Average Cost

$          116.00

G)

Total COGS

$ 464,000.00

H)

Gross Margin

$ 136,000.00

I)

Net Income (Loss)

$ (44,000.00)

Cost of Goods Manufactured

Total

Per Unit

Direct material

$ 170,000.00

$     34.00

Direct Labor

$ 110,000.00

$     22.00

Manufacturing Overheads

$            -  

Rent on Manufacturing facility

$ 250,000.00

$     50.00

Depreciation on Manufacturing Equipment

$    50,000.00

$     10.00

Total Manufacturing Overheads

$ 300,000.00

$     60.00

Total Cost of Goods Manufactured

$ 580,000.00

$ 116.00

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