Chapter 2 Homework 2

Chapter 2 Homework 2 - 450,000.00 2) Skyler Company Income...

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Chapter 2 Problem 25 1) Raw Materials Used Beginning Raw Materials Inventory 17,000.00 Add: Purchased 190,000.00 Deduct: Ending Raw Materials ( 42,000.00) Raw Materials Used 165,000.00 Manufacturing Costs Direct Materials 165,000.00 Direct Labor 90,000.00 Overhead: Rent, Factory 32,000.00 Insurance, Factory 6,000.00 Utilities, Factory 45,000.00 Indirect Labor 108,000.00 Depreciation, Factory Equip. 12,000.00 Maintenance, Factory 7,000.00 Manufacturing Costs 465,000.00 Cost of Goods Manufactured Beginning WIP Inventory 70,000.00 Add: Manufacturing Costs 465,000.00 Deduct: Ending WIP Inventory ( 85,000.00) Cost of Goods Manufactured
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Unformatted text preview: 450,000.00 2) Skyler Company Income Statement For the Month Ended June 30 Sales $600,000.00 Cost of Goods Sold 410,000.00 Gross Margin 190,000.00 Selling and Administrative Expenses Salaries 35,000.00 Rent 8,000.00 Insurance 2,000.00 Utilities 5,000.00 Depreciation 10,000.00 Advertising 80,000.00 140,000.00 Net Operating Income $ 50,000.00 3) When the income statement is prepared correctly, it shows that Skyler Company has made a $60,000 profit for the month of June. Based on this, I would recommend that the company continue operations....
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Chapter 2 Homework 2 - 450,000.00 2) Skyler Company Income...

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