Problem: Acme Co. makes widgets, during 2005 the company sales were 600,000. Costs in 2004:
Raw materials 70,000
Direct labor 180,000
Indirect labor 15,000
Equipment rent 25,000
Factory utilities 10,000
Misc factory supplies 17,000
building depreciation 15,000
property taxes 5,000
production salaries 75,000
administrative salaries 120,000
Misc selling and admin costs 29,000
Inventory balances at beginning and end of year:
raw materials 21,000 (beginning) - 17,000 (end)
work in progress 30,000 (beginning) - 35,000 (end)
finished goods 45,000 (beginning) - 47,000 (end)
60% of factory building was devoted to manufacturing, so 60% of depreciation and taxes is treated as factory cost. Company was subject to income tax rate of 30%
Compute the following:
- Raw materials consumed
- Factory overhead incurred
- Cost of furniture manufactured
- Cost of furniture sold
- Selling and admin expenses incurred
Also prepare an Income Statement for Acme Co. for 2004.