PLEASE COULD SOMEONE HELP ME WITH FULL CALCULATIONS FOR THIS.. Problem 2-8 Prepa

Question

PLEASE COULD SOMEONE HELP ME WITH FULL CALCULATIONS FOR THIS..

Problem 2-8 Preparing Financial Statements, Cost Behaviour (LO1- CC1; LO5 - CC9, 10; LO6 - CC11, 12) Selected account balances for the year ended December 31 are provided below for Superior Company: $ 108,000 6,400 40,200 303,000 62,000 Selling and administrative salaries Insurance, factory Utilities, factory Purchases of raw materials Indirect labour Direct labour Advertising expense Cleaning supplies, factory Sales commissions Rent, factory building Maintenance, factory 75,100 7,700 47,500 128,000 30,000 Inventory balances at the beginning and end of the year were as follows Beginning of End of the Year the Year $50,800 $ 13,800 34,200 Raw materials Work in process Finished goods 43,000 The total manufacturing costs for the year were $718,000, the goods available for sale totalled $750,000 and the cost of goods sold totalled $667,000

Explanation / Answer

Part-1(a) Part-2 Superior Company average cost of Material and Rent for 40000 Unit Schedule of Cost of Goods Manufactured Units Total Cost Average Cost For the year ended December 31 Direct Material 40000 $340,000.00 $8.50 Per Unit Direct Material Rent on the Factory Building 40000 $128,000.00 $3.20 Per Unit Raw Material inventory, beginning $50,800.00 Add: Purchase of Raw Materials $303,000.00 Part-3 Raw Material available for use $353,800.00 average cost of Material and Rent for 50000 Unit Less: Raw Material Inventory, Ending -$13,800.00 Units Cost /Unit Total Cost Remark Raw Material Used in Production $340,000.00 Direct Material 50000 $6.80 $340,000.00 Variable Cost Rent on the Factory Building 50000 $105,000.00 $105,000.00 Fixed Cost Direct Labour ( W/Note-1 $103,700.00 Working Note-1 Manufacturing Overhead Calculation of Direct Labour Cleaning Supplies, Factory $7,700.00 Manufacting Cost $718,000.00 Indirect Labour $62,000.00 Raw Material Used in Production -$340,000.00 Insurance, Factory $6,400.00 Total Overhead Cost -$274,300.00 Maintainance, Factory $30,000.00 Direct Labour $103,700.00 Utilities, Factory $40,200.00 Rent, Factory, Building $128,000.00 Working Note-2 Total Overhead Cost $274,300.00 Calculation of Cost goods Manufactured Cost of Goods Avialble for Sale $750,000.00 Total Manufacturing Cost $718,000.00 Less: Sales Commission -$47,500.00 Add: WIP in Beginning (W/Note-3) $18,700.00 Cost of Goods Manufactured $702,500.00 Less: WIP , Ending -$34,200.00 Cost of Goods Manufactured (W/Note-2) $702,500.00 Working Note-3 Part-1(b) Calculation of WIP in Beginning Superior Company Cost of Goods Manufactured $702,500.00 Schedule of Cost of Goods Manufactured Add: Closing WIP $34,200.00 For the year ended December 31 Less: Manufacturing cost -$718,000.00 Finished Goods Inventory, Beginning 43000 WIP in Beginning $18,700.00 Add: Cost of Goods Manufactured $702,500.00 Good available for Sale $750,000.00 Working Note-4 Less: Finished Goods Inventory, Ending ( W/Note-4) -$4,500.00 Calculation of Finished Goods in Beginning Cost Of goods Sold $1,491,000.00 Goods Available for Sale $750,000.00 Less: Cost of Goods Manufactured -$702,500.00 Less: Finished Goods Inventory, Beginning -$43,000.00 Finished Goods Inventory, Ending $4,500.00

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