Problem:
1. The Shim Refrigerator Co. shows the following records for the period ended December 31, 19A:
|
Materials purchased
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$ 550,000
|
|
Inventories, Jan. 1, 19A:
|
|
|
Materials
|
$ 20,000
|
|
Work-in-process
|
$ 200,000
|
|
Finished goods
|
1,000 units
|
|
Direct labor
|
$1,050,000
|
|
Factory overhead (40% variable)
|
$ 750,000
|
|
Selling expenses (all fixed)
|
$ 500,750
|
|
General and administrative (all fixed)
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$ 385,230
|
|
Sales (7,500 units at $535)
|
|
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Inventories, Dec. 31, 19A:
|
|
|
Materials
|
$ 50,000
|
|
Work-in-process
|
$ 100,000
|
|
Finished goods
|
1,000 units
|
Assume that finished goods inventories are valued at the current unit manufacturing cost.
1. Prepare a schedule of cost of goods manufactured.
2. Find the number of units manufactured and unit manufacturing cost.
3. Prepare an income statement for the period.
4. Find the total variable and fixed costs.