i already did the cost of goods sold and manufactured. i don\'t know how to do t
ID: 2507846 • Letter: I
Question
i already did the cost of goods sold and manufactured. i don't know how to do the income statement though. please explain how you got your numbers thank you.
Problem 2-22B Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [LO6]
Alexsandar Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials):
The total manufacturing costs for the year were $685,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $663,000; and the net operating income was $39,000. The company
Alexsandar Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials):
Explanation / Answer
3. Assume that in the following year the company expects to produce 50,000 units. What average cost per unit and total cost would you expect to be incurred for direct materials? For rent on the factory building? (Assume that direct materials is a variable cost and that rent is a fixed cost.
Direct materials: Per unit: $9.00 (unchanged)
Total: 50,000 units $9.00 per unit = $450,000.
Rent, factory building: Per unit: $90,000 50,000 units = $1.80 per unit.
Total: $90,000 (unchanged).
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