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Panel A: Income Statement Steel Company USA Income Statement For year Ended December 31,2011 Revenues Cost of Goods sold: Beginning finished goods...

Using the information in the table, create an income statement with a schedule for costs of goods manufactured. Make sure that for the costs you classify if they are direct or indirect and indicate if they are variable or fixed.
Let's assume that both direct material costs and plant leasing costs are for the production of 1,800,000 units. What would be the direct material cost of each of these units produced? Plant leasing cost per unit? Plant leasing should be a fixed cost here.
Now let's assume we build 2,000,000 units next year. Repeat the calculations in item #2 above for direct materials and plant leasing costs.
Explain why the unit costs for direct materials didn't change in numbers 2 and 3, but the unit costs for the plant lease did.
Panel A: Income Statement Steel Company USA Inputs Costs Income Statement Sandpaper $4,000 For year Ended December 31,2011 Materials - handling costs $140,000 Revenues Lubricants and coolants $10,000 $14,000 Cost of Goods sold: Misc indirect labor $80,000 Beginning finished goods inventory, January 1,2010 Misc direct labor $600,000 Cost of goods manufactured (see Panel B) Direct materials inv Jan 1, 2010 $80,000 Cost of goods available for sale Direct materials inv Dec 31, 2010 $100,000 Ending finished good inventory, December 31,2010 Finished goods inv, Jan 1, 2010 $200,000 Cost of goods sold Finished goods inv, Dec 31, 2010 $300,000 Gross margin (or gross profit) WIP Jan 1, 2010 $20,000 Operating costs: WIP Dec 31, 2010 $28,000 R&D design, mkg., dist, and cust.-service cost Plant lease costs $108,000 Total operating costs Depreciation - PPE $72,000 Operating income Property taxes $8,000 Insurance $6,000 Direct materials purchased $920,000 Revenues $2,720,000 Panel B: Cost of goods manufactured Marketing Promo $120,000 Steel Company USA Marketing Salaries $200,000 Schedule of Cost of Goods Manufactured Distribution costs $140,000 For the year ended December 31,2010 Customer service costs $200,000 Direct materials: Beginning inventory, January 1,2010 $80,000 Purchases of direct materials $920,000 Cost of direct materials available for use $1,000,000 Ending inventory, December 31,2010 $100,000 Direct materials used $900,000 Direct manufacturing labor $600,000 Manufacturing overhead cost: Indirect manufacturing labor $80,000 Supplies $14,000
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Steel Company USA Requirement 1: Income statement for the year ended December 31, 2010 Revenues Less: Cost of goods sold Finished goods inventory, Jan 1, 2010 Add: Cost of goods manufactured Goods...

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