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Problem 2.32Income Statement, Cost of Goods ManufacturedSpencer Company produced 200,000 cases of sports drinks during the past calendar year. Each case of 1-liter bottles sells for $36. Spencer had 2,500 cases of sports drinks in finished goods inventory at the beginning of the year. At the end of the year, there were 11,500 cases of sports drinks in finished goods inventory. Spencer’s accounting records provide the following information:Required:Hide1.Prepare a cost of goods manufactured statement.SpencerCompany Statement of Cost of GoodsManufactured For the Year Ended December31 Direct materials: $Activity-Based Control SystemTraditional Control System
2.Compute the cost of producing one case of sports drink last year. If required, round your answer to the nearest cent.$per caseHide3.Prepare an income statement on an absorption-costing basis. Show the percentage of sales that each line item represents. R
Problem 2.35 (Algorithmic)Cost of Goods Manufactured, Income StatementOrman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported the following:Work-in-process inventory, January 1$ 13,230Work-in-process inventory, December 3128,300Finished goods inventory, January 1112,580Finished goods inventory, December 3184,960Direct materials inventory, January 13,320Direct materials inventory, December 312,780Direct materials purchased183,690Direct labor137,850Plant depreciation19,480Salary, production supervisor46,920Indirect labor68,440Utilities, factory15,550Sales commissions41,990
Salary, sales supervisor74,980Depreciation, factory equipment32,480Administrative expenses167,720Supplies (40% used in the factory, 60% used in the sales office)17,790Advertising expense43,440Last year, Orman produced 89,010 units and sold 90,450 units at $10.60 per unit.Required:Hide1.Prepare a statement of cost of goods manufactured.OrmanCompany Statement of Cost of GoodsManufactured For LastYear Direct materials: $Direct materials used in production $Manufacturing overhead: $
$$2.Prepare an absorption-costing income statement.