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

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

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....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern