Production in units 29,000 Sales in units ?? Beginning Finished Goods in Units 0 Ending Finished goods in units ?? Total Sales in dollars $700,000 Unit selling price $25 Beginning of the month End of the month Inventories: Raw Materials $13,000 $12,000 Work in process $30,000 $28,000 Finished goods $0 ?? Costs: Direct labor $80,000 Advertising Expense $70,000 Indirect production labor $9,720 Raw materials purchased $130,000 $35,000 Utilities, Factory $32,000 ?? Maintenance, factory $20,000 ?? Selling and administrative Salaries $140,000 Utilities, selling and administrative $20,000 Part time janitor in the factory $12,000 There are 4 requirements to this project. A cost item can affect multiple areas. You are making your calculations based on this month's production and sales. I have entered the Direct labor to help get you started. Also, the selling and admin. Costs have been combined into one column. Building rent(production uses 82% of the space, administrative and sales offices uses the rest of the space) Royalty paid for use of production patent , $2.30 per unit produced Rent for special production equipment, $3,000 per month plus $.20 per unit produced Requirement #1 : Use the scenario above to fill in the chart below with the applicable information. Total each of the columns after you have assigned all the costs to the applicable column(s)
