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    Cost of goods manufactured, cost of goods sold, and income statement

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    Cost of goods manufactured, cost of goods sold, and income statement. Miller & Co. incurred the following costs during June:

    Raw materials purchased $66,150
    Direct Labor ($15 per hour) $82,500
    Manufacturing Overhead (Actual) $135,450
    Selling Expenses $44,700
    Administrative Expenses $22,050
    Interest Expense $7,660

    Manufacturing overhead is applied on the basis of $25 per direct labor hour. Assume that over-applied or under-applied overhead is transferred to cost of goods sold only at the end of the year. During the month, 5,000 units of product were manufactured and 5,300 units of product were sold. On June1 and June 30, Miller & Co. carried the following inventory balances:

    June 1 June 30
    Raw Materials $27,440 $25,060
    Work In Process $74,480 $79,760
    Finished Goods $58,520 $41,525

    Required:

    a. Prepare a statement of cost of goods manufactured for the month of June and calculate the average cost per unit of product manufactured,
    b. Calculate the cost of goods sold during June.
    c. Calculate the difference between cost of goods manufactured and cost of goods sold. How will this amount be reported in the financial statements?
    d. Prepare a traditional (absorption) income statement for Miller & Co. for the month of June. Assume that sales for the month were $413,400 and the company's effective income tax rate was 40%.

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    https://brainmass.com/business/accounting/cost-goods-manufactured-cost-goods-sold-income-statement-93411

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    Cost of goods manufactured, cost of goods sold, and income statement. Miller & Co. incurred the following costs during June:

    Raw materials purchased $66,150
    Direct Labor ($15 per hour) $82,500
    Manufacturing Overhead (Actual) $135,450
    Selling Expenses $44,700
    Administrative Expenses $22,050
    Interest Expense $7,660

    Manufacturing overhead is applied on the basis of $25 per direct labor hour. Assume that over-applied or under-applied overhead is transferred to cost of goods sold only at the end of the year. During the month, 5,000 units of product were manufactured and 5,300 units of product were sold. On June1 and June 30, Miller & Co. carried the following inventory ...

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    This solution is comprised of a detailed explanation to answer the request of the assignment of more than 300 words of text.

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