Response to the following problem:
The following calendar-year information is taken from the December 31, 2009, adjusted trial balance and other records of Dahlia Company.
Advertising expense . . . . . . . . . . . . . . . . . . . . . . . . $ 19,125
Depreciation expense-Office equipment . . . . . . . 8,750
Depreciation expense-Selling equipment . . . . . . . 10,000
Depreciation expense-Factory equipment . . . . . . . 32,500
Factory supervision . . . . . . . . . . . . . . . . . . . . . . . . . 122,500
Factory supplies used . . . . . . . . . . . . . . . . . . . . . . . 15,750
Factory utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,250
Inventories
Raw materials, December 31, 2008 . . . . . . . . . . . . 177,500
Raw materials, December 31, 2009 . . . . . . . . . . . . 168,125
Goods in process, December 31, 2008 . . . . . . . . . 15,875
Goods in process, December 31, 2009 . . . . . . . . . 14,000
Finished goods, December 31, 2008 . . . . . . . . . . . 164,375
Finished goods, December 31, 2009 . . . . . . . . . . . 129,000
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 650,750
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
Miscellaneous production costs . . . . . . . . . . . . . . . . 8,500
Office salaries expense . . . . . . . . . . . . . . . . . . . . . . 100,875
Raw materials purchases . . . . . . . . . . . . . . . . . . . . . 872,500
Rent expense-Office space . . . . . . . . . . . . . . . . . . 21,125
Rent expense-Selling space . . . . . . . . . . . . . . . . . . 25,750
Rent expense-Factory building . . . . . . . . . . . . . . . 79,750
Maintenance expense-Factory equipment . . . . . . 27,875
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,275,000
Sales discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,500
Sales salaries expense . . . . . . . . . . . . . . . . . . . . . . . 286,250
Required:
1. Each team member is to be responsible for computing one of the following amounts. You are not to duplicate your teammates' work. Get any necessary amounts from teammates. Each member is to explain the computation to the team in preparation for reporting to class.
a. Materials used.
b. Factory overhead.
c. Total manufacturing costs.
d. Total cost of goods in process.
e. Cost of goods manufactured.
2. Check your cost of goods manufactured with the instructor. If it is correct, proceed to part (3).
3. Each team member is to be responsible for computing one of the following amounts. You are not to duplicate your teammates' work. Get any necessary amounts from teammates. Each member is to explain the computation to the team in preparation for reporting to class.
a. Net sales.
b. Cost of goods sold.
c. Gross profit.
d. Total operating expenses.
e. Net income or loss before taxes.