Problem 2-9 You have the following information about the activities of ABC Inc

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Problem 2-9

You have the following information about the activities of ABC Inc. for 2016

Sales

       500,000

Factory maintenance

         24,000

Indirect labour

         19,000

Direct Material purchases

         98,000

Factory utilities

         17,000

Ending Direct materials

         16,000

General and Administrative expense

         71,200

Beginning work-in-process inventory

         26,000

Beginning finished goods inventory

         63,000

Ending work-in-process inventory

         34,000

Ending finished goods inventory

         44,600

Beginning direct material inventory

         13,000

Selling Expenses

         67,600

Direct labour

         83,000

Factory insurance

            9,000

Indirect Materials

            7,600

Amortization-Factory

         30,000

Required:

1. What was the ending direct material inventory?

2. What was the total manufacturing cost?

3. What was the cost of goods manufactured?

4. What was the cost of goods sold?

5. Based on all the answers above, please calculate the net income for 2016.

 

 

Cost Indentification

Mr. John Black began his pottery manufacturing business serveral years ago.

The following costs occurred during 2016, please use the cost classification method to put them in to p

1) As the business owner, John's saary $5000 per month

2) Workshop Building rent, $2800 per month

3) Clay and glaze $2 per pottery

4)Wages of production worker, $12/pottery

5)    Advertising, $800 per month

6)    Sales commission, $10 / pottery

7)    Rent of production equipment, $300 /month

8)    Amortization of office copier machine $500

9)    Rent of sales office $500 per month

10) Phone for taking orders $40 per month

Interest lost on savings account, $1200 per year