Question Completion:
Diana Corporation provides the following information for 2017: 2-3 Beginning work-in-process inventory, 1/1/2017 Total manufacturing costs incurred in 2017 Ending work-in-process inventory, 12/31/2017 Beginning inventory of finished goods, 1/1/2017 Ending inventory of finished goods, 12/31/2017 $ 9,000 $160,000 $ 8,000 $ 15,000 $ 21,000 -) 195.000
Answer:
Diana Corporation
Aa. Cost of Goods Manufactured in 2017 is:
= $161,000
Ab. Cost of Goods Sold in 2017 is:
= $155,000
B1. Direct materials inventory, total cost, December 31, 2017:
= $ 8,000
B2. Finished Goods Inventory, total units, December 31, 2017:
= 13,125 units
B3. Selling Price in 2017 is:
= $4.92
B4. Operating Income for 2017:
Revenue $473,200
Cost of goods sold 155,000
Gross profit $318,200
Marketing, distribution,
and customer-service
Expenses 195,000
Operating Income $123,200
Explanation:
a) Data and Calculations:
Beginning work-in-process inventory, 1/1/2017 = $ 9,000
Total manufacturing costs incurred in 2017 = $160,000
Ending work-in-process inventory, 12/31/2017 = $ 8,000
Beginning inventory of finished goods, 1/1/2017 = $ 15,000
Ending inventory of finished goods, 12/31/2017 = $ 21,000
Production in 2017 = 100,000 units
Direct materials = 2 pounds for 1 unit of finished product.
Revenue in 2017 = $473,200
Ending inventory of finished goods = average cost.
Finished goods inventory at December 31, 2017 = $20,970
Selling and Distribution expenses = $195,000
Cost of goods manufacturing in 2017:
Beginning work-in-process inventory, 1/1/2017 = $ 9,000
Total manufacturing costs incurred in 2017 = $160,000
Ending work-in-process inventory, 12/31/2017 = ($ 8,000)
Cost of goods manufactured in 2017 = $161,000
Cost of goods sold in 2017:
Beginning inventory of finished goods, 1/1/2017 = $ 15,000
Cost of goods manufactured in 2017 = $161,000
Ending inventory of finished goods, 12/31/2017 = $ 21,000
Cost of goods sold in 2017 = $155,000
Production in 2017 = 100,000 units
Direct materials cost per unit = $161,000/100,000 = $1.61
Total units of finished goods inventory
Beginning inventory of finished goods, 1/1/2017 = $ 15,000
Cost of goods manufactured in 2017 = $161,000
Total cost of goods available for sale = $176,000
Units = $176,000/$1.61 = 109,317 units
Ending units of finished goods inventory = $21,000/$1.61 = 13,125 units
Selling price in 2017:
Cost of goods sold = $155,000
Unit cost = $1.61
Units sold = $155,000/$1.61
= 96,273 units
Selling price = Revenue/Units sold = $473,200/96,273 = $4.92
Operating income for 2017
