I-17.03 Problem

I-17.03 Problem - 700,000 Beginning finished goods (400...

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I-17.03 Vintage Furniture constructs and sells executive style conference tables. The selling price is $10,000 per table. A unique feature is that the only raw material used in the construction of each table, other than indirect materials like glues and screws, comes entirely from a single tree. Tree prices and other costs of production have remained stable, and Vintage is able to use each tree purchased without incurring any significant spoilage. Consider the following "disorganized" information and complete the indicated requirements. Ending work in process (600 tables) $ 1,800,000 Selling price per table 10,000 Ending finished goods (200 tables) 1,400,000 Indirect labor incurred during the period 125,000 Raw materials transferred into production (700 trees)
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Unformatted text preview: 700,000 Beginning finished goods (400 tables) 2,800,000 Cost of glues and screws 35,000 Beginning work in process 1,465,000 Ending raw materials (500 trees) 500,000 Direct labor incurred during the period 3,300,000 Selling, general, and administrative costs incurred 1,150,000 Depreciation of factory equipment 75,000 Raw material purchases during the period (900 trees) 900,000 All other factory overhead 300,000 Tables sold (800 tables) (a) Complete the reconciliation of units on the accompanying blank worksheet, showing the "unit" activity in raw materials, work in process, and finished goods. (b) Calculate the cost of goods manufactured. (c) Calculate the cost of goods sold. (d) Calculate net income. Assume an income tax rate of 35%....
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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