HW2 - TMC 372,000 + BI of WIP 70,000- EI of WIP 85,000 COGM...

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Jack Meehan Accounting 152 P2-23, P2-25, C2-31 9/4/2007 P2-23 1 and 2) Cost Behavior Selling or Product Cost Cost Item Variable Fixed Admin Cost Direct Indirect Materials used 430000 430000 General office salaries 110000 110000 Factory supervision 70000 $70,000 Sales commissions 60000 60000 Deprec., factory bldg. 105000 105000 Deprec., office equip. 2000 2000 Indirect materials, fact. 18000 $18,000 factory labor 90000 90000 advertising 100000 10000 insurance, factory 6000 6000 general office supplies 4000 $4,000 property taxes, factory 20000 $20,000 utilities, factory 45000 45000 639000 421000 186000 670000 114000 3) The average procut cost per bookcase will increase sinc e\\e we are selling less bookcases 4) a) The president probably has in mind a number less than the price of the neighbor since the president buys in bulk and can buy the materials at a lower cost b) Opportunity cost shows that the president could sell the same dresser to someone else since they are at full capacity. P2-25 1 BI of RM 17,000 Purchases 190,000 - EI of RM 42,000 RMU 165,000 + Direct Labor 90,000 + MOH 117,000
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Unformatted text preview: TMC 372,000 + BI of WIP 70,000- EI of WIP 85,000 COGM 357,000 2 Skyler Company Income Statement For the Month Ended June 30 Sales 600000 Cost of Goods Manufactured 357000 Beginning Inventory 20000 Ending Inventory 60000 COGS 317000 Less Selling and Administrative Costs Salaries 35000 Deprec, Sales Equipment 10000 Indirect labor 108000 Advertising 80000 233000 Net Income 50000 3 No, the company should not shut down since the original IS does not include the COGM. C2-31 BI of RM 30,000 Purchases 420,000- EI of RM RMU 450,000 + Direct Labor 130,000 + MOH 520,000 TMC 1,100,000 + BI of WIP 50,000- EI of WIP COGM 1,150,000 Operex Products Income Statement For the Year Ended Dec 31, 20XX Sales 1350000 Cost of Goods Manufactured 1,150,000 Beginning Inventory 90000 Ending Inventory 430000 COGS 810000 Gross Margin 540000 Less Selling and Administrative Costs Salaries Deprec, Sales Equipment Indirect labor Advertising Net Income 540000...
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HW2 - TMC 372,000 + BI of WIP 70,000- EI of WIP 85,000 COGM...

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