Question
need some help with page 9 and 10
Background Information Bctty 's Design is a subchapter S corporation that manufactures children's lamps/ nightlights for use in bedrooms. These lamps are sold nationwide through a up of independent sales representatives who have an exclusive sales region. The business is in its tenth year and has asked you to assist in planning for next year's operations The lamps are ceramic figurines of animals, boats, boys and girls playing and singing. all in delightful colors. The owner of the business , Betty, creates a drawing for the figurine and faxes it to a plant in China where a mold is created and a sample produced and hand painted. If the mold meets the expectations of Betty an order of 500 pieces is placed. There are presently 10 different figurines that come in six different colors; 60 models. The lamp shades and the electrical parts are supplied from domestic manufacturers. There are presently 10 workers in the plant. They are responsible for receiving the raw material, manufacturing the product, packing and shipping. In addition to Betty there are two office workers who are responsible for all administrative duties. Betty had her accountant prepare the Projected Income Statement and Balance Sheet presented on page two. Betty heard about your skills in managerial accounting and would like your assistance in the following areas: Part 1 Part 2 Part 3 Part 4 Part 5 Part 6 Fixed and Variable Cost Determinations- Unit Cost Calculations Cost Volume Relationships - Profit Planning Job Order Costing Process Costing Budgets Process Costing-Weighted Average Standard Costing - Variance Analysis Part 7 Page 2 of 16
Explanation / Answer
6 Cost of goods sold Units Cost per unit Amount Beginning Inventory, Finished goods 3000 28.93 86790 Production Costs Materials Figurines Beginning Inventory 500 9.2 4600 Purchased 26425 9.522 251618.85 Available for use 26925 256218.85 Ending Inventory 525 9.522 4999.05 Figurines used in Production 26400 251219.8 Electrical Parts Beginning Inventory 500 1.25 625 Purchased 26400 1.29375 34155 Available for use 26900 34780 Ending Inventory 500 1.29375 646.875 Electrical Parts used in Production 26400 34133.1250 Lamp shades Lamp Shades used in production 26400 6.21 163944 Total Materials 26400 17.01882 449296.92500 Labor 26400 2.3175 61182.00000 Overhead 26400 9.895341 261237.00000 Cost of goods available 29400 858505.92500 Less : Ending Inventory, Finished goods 2400 29.23166 70155.99318 Cost of goods sold 27000 788349.93182 7 Budgeted Income statement Sales 27000 48 1296000 Cost of goods sold 27000 788349.9318 Gross profit 507650.0682 Selling Expenses & Admin Expenses 168396.35 Net Income 339253.7182
