Prob1-19A - the average cost per unit for direct materials...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
PROBLEM 1-19A Schedule of Cost of Goods Manufactured; Income Statement; Cost Behavior Selected account balances for the year ended December 31 are provided below for Rolling Company: Inventory balances at the beginning and end of the year were as follows: The total manufacturing costs for the year were $242,000; the goods available for sale totaled $269,000; and the cost of goods sold totaled $229,000. Required: 1. Prepare a schedule of cost of goods manufactured and the cost of goods sold section of the company’s income statement for the year. 2. The company produced the equivalent of 7,000 units during the year. Compute
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: the average cost per unit for direct materials used and the average cost per unit for rent on the factory building. 3. In the following year the company expects to produce 5,000 units. What average cost per unit and total cost would you expect to be incurred for direct materials? For rent on the factory building? (Assume that direct materials is a variable cost and that rent is a fixed cost.) 4. Explain to the president the reason for any difference in the average cost per unit between (2) and (3) above....
View Full Document

Ask a homework question - tutors are online