Concepts to the Manufacturing Industry
Given the above information for Johnson Corporation:
.
. Advertising costs
. 300,000
. Office rent
. 20,000
. Direct materials
. 850,000
. Delivery vehicle depreciation
. 80,000
. Factory repair and maintenance
. 425,000
. Sales salary
. 505,000
. Indirect labor
. 205,000
. Manufacturing equipment depreciation
. 180,000
. Administrative salaries
. 320,000
. President's salary
. 650,000
. Sales revenue
. 5,400,000
. Indirect materials
. 180,000
. Direct labor
. 1,400,000
. Machine hours
. 2,500
. Direct labor hours
. 11,000
. Machine hours per unit
. 3
. Direct labor hours per unit
. 5
. Direct materials per unit
. ?
. Units manufactured
. 600
. Units sold
. 350
1. Create a list that identifies the total period costs.
1.Calculate overhead per unit based on machine hours.
2.Calculate the total product cost for units manufactured (“direct materials per unit”).
3.Calculate total cost of goods sold.
4.Prepare income statement in good form assuming no beginning inventory.