Problem:
Dalton Brothers Manufacturing, Inc. began business in July 2011. The firm makes mud boats for retail sale. Following are data taken from the firm's accounting records that pertain to its first month in operation.
Direct material purchased on account-----$900,000
Direct material issued to production-----377,000
Direct labor payroll accrued-----126,800
Indirect labor payroll paid-----40,600
Factory insurance expired-----6,000
Factory utilities paid-----17,800
Factory depreciation recorded-----230,300
Ending Work in Process Inventory-----51,000
Ending Finished Goods Inventory (30 units)-----97,500
Sales on Account ($5,200)-----1,040,000
Q1. How many units did the company sell in July 2011?
Q2. Prepare a schedule of cost of goods manufactured for July 2011?
Q3. How many units were completed in July?
Q4. What was the per unit cost of goods manufactured for the month?
Q5. What was the cost of goods sold in the first month of operations?
Q6. What was the gross margin for July 2011?