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    Financial Accounting Report

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    This company makes a single product.
    The following information has been taken from the company's production, sales, and cost records for the month.

    Production in units 32,000
    Sales in units ??
    Beginning Finished Goods in Units 0
    Ending Finished goods in units ??
    Total Sales in dollars $924,000
    Unit selling price $30
    Beginning of the month End of the month
    Inventories:
    Raw Materials $12,000 $10,000
    Work in process $30,000 $40,640
    Finished goods $0 ??
    Costs:
    Direct labor $86,000
    Advertising $100,000
    Indirect production labor $18,000
    Raw materials purchased $140,000
    "Building rent(production uses 80%
    of the space, administrative and sales
    offices us the rest)" $50,000
    Utilities, Factory $34,000
    "Royalty paid for use of production patent, $2.50 per
    unit produced" ??
    Maintenance, factory $12,000
    "Rent for special production equipment,
    $4,000 per month plus $.20 per unit produced" ??
    Selling and administrative Salaries $80,000
    Utilities, selling and administrative $15,000
    Part time janitor in the factory $10,000

    Requirement #1: Using the scenario above fill in the chart below with the applicable information.
    A cost item can affect multiple areas. You are making your calculations based on this month's production and sales.
    Total each of the columns after you have assigned all the costs to the applicable column(s)
    I have entered the Direct labor to help get you started. Also, the selling and admin. Costs have been combined into one column.
    Product costs Period Cost
    Cost item Direct Materials "Direct
    Labor" "Manufacturing
    overhead" "Prime
    costs" "Conversion
    Costs" "Selling and Administrative
    Expenses"
    Direct labor $86,000 $86,000 $86,000
    Advertising
    Indirect production labor
    Raw materials used
    "Building rent(production uses 80%
    of the space, administrative and sales
    offices us the rest)"
    Utilities, Factory
    "Royalty paid for use of production patent, $2.50 per
    unit produced"
    Maintenance, factory
    "Rent for special production equipment,
    $4,000 per month plus $.20 per unit produced"
    Selling and administrative Salaries
    Utilities, selling and administrative
    Part time janitor in the factory
    Totals

    © BrainMass Inc. brainmass.com June 4, 2020, 3:27 am ad1c9bdddf
    https://brainmass.com/business/financial-accounting-bookkeeping/financial-accounting-report-516371

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    Solution Summary

    The expert completes the financial accounting report for a company who makes a single report.

    $2.19

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