Answer:
a. $513,000
b. $913,200
c. $926,400
d. $344,100
e. 11,340 units
Explanation:
a. manufacturing overhead for the year.
<em>Manufacturing Overhead = indirect manufacturing costs</em>
therefore,
Manufacturing Overhead = $109,000 (Indirect labor) + $80,000 x 75 % (Building depreciation) + $344,000 (Other factory costs)
= $513,000
b. cost of goods manufactured.
<em>Cost of Goods Manufactured = Beginning Work In Process + Manufacturing Costs for the Period - Ending Work In Process</em>
= $35,700 + ($15,800 + $175,000 - $18,200) + $254,000 + $513,000 - $62,100
= $913,200
c. cost of goods sold.
<em>Cost of Goods Sold = Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods</em>
= $111,100 + $913,200 - $97,900
= $926,400
d. net income for 20x1, assuming a 30% income tax rate.
<em>Net Income = Gross Profit (Sales - Cost of Goods Sold) - Expenses</em>
= $1,495,000 - $133,000 - $195,000 - ($80,000 x 25%)
= $1,147,000
Income tax = 1,147,000 x 30%
= $344,100
therefore,
Net Income = $1,147,000 - $344,100 = $802,900
e. number of completed units manufactured during the year.
<u>First Calculate Number of Units Sold</u>
Number of Units Sold = 1,495,000 ÷ $130 = 11,500 units
<em>Units manufactured = Units Sold + Ending Finished Inventory - Beginning Finished Inventory</em>
= 11,500 + 1,190 - 1,350
= 11,340 units
