A100 Mgl Acctg 1 table cost - solution

A100 Mgl Acctg 1 table cost - solution - A100 - Managerial...

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A100 - Managerial Accounting - "What does it cost?" And what would the income statement look like? We assemble and sell tables. Some input requirements and costs are: Units sold= 2880 @$300 each Materials Costs per table produced Table Company Table top $30.00 a Income Statement 4 Table legs $16.00 b For the Year Ended Dec. 31 20XX 4 Metal leg brackets $4.00 c 16 screws $1.60 d Sales $864,000 Wood stain -- for coloring wood k Cost of goods sold 256,280 Varnish -- for sealing wood l too difficult/costly to measure! Gross profit $607,720 Abrasives -- for smoothing wood m Selling and admin. expenses: Packing Materials -- box $1.00 e Advertising $26,000 Packing Materials -- styrofoam "peanuts" $0.30 f Sales commission 14,400 Packing Materials -- tape and wrap $0.10 g Interest expense 5,000 Labor Shipping expense 48,000 One hour assembly time@ $10/hour $10.00 h Building depreciation 20,000 $4.00 i Property tax 1,800 Other costs President's salary 100,000 $215,200 Production foreman's salary $30,000 per year Net Income $392,520 Newspaper advertising -- an ad. every Friday! $26,000 per year Salesman $5 Interest on $50,000 loan @ 10% $5,000 per year
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A100 Mgl Acctg 1 table cost - solution - A100 - Managerial...

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