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5e sol02-18 - $6,663,000 Add Beginning work in process...

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Cost Management Hansen and Mowen Prob 2-18 Name: SOLUTION Enter the appropriate amounts in the shaded cells in columns E and G. 1) Dalal COMPANY Statement of Cost of Goods Manufactured For the Year Ended December 31, 2004 Direct materials: Direct materials beginning inventory $290,000 Add: Purchases 1,550,000 Less: Direct materials ending inventory 112,000 Direct materials used $1,728,000 Direct labor cost 2,000,000 Overhead: Insurance on factory $200,000 Indirect labor 790,000 Depreciation, factory building 1,100,000 Depreciation, factory equipment 630,000 Property taxes on factory 65,000 Utilities, factory 150,000 2,935,000 Total manufacturing costs
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Unformatted text preview: $6,663,000 Add: Beginning work in process 450,000 Less: Ending work in process (750,000) Cost of goods manufactured $6,363,000 2) Unit cost = $6,363,000 / 150,000 = $42.42 3) JORDAN COMPANY Income Statement For the Year Ended December 31, 2004 Sales $7,050,000 Cost of goods sold: Cost of goods manufactured $6,363,000 Add: Beginning finished goods 107,500 Goods available for sale $6,470,500 Less: Ending finished goods inventory 487,830 5,982,670 Gross margin $1,067,330 Less: Salary, sales supervisor $85,000 Administrative expenses 490,000 Selling expenses 390,000 965,000 Operating income $102,330...
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