question archive Problem 2-9 You have the following information about the activities of ABC Inc
Subject:AccountingPrice:3.86 Bought7
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
Purchased 7 times