Maurice Tutor

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Category > Accounting Posted 26 Jul 2017 My Price 14.00

Bart's Woodwork Company

Bart's Woodwork Company makes and sells wooden shelves. Bart's carpenters make the shelves in the company's rented building. Bart has a separate office at another location that also includes a showroom where customers can view sample shelves and ask questions of salespeople. The company sells all the shelves it produces each year. Assume the company keeps no inventories. The following information pertains to Bart's Woodwork Company for the past year: 
a. Units produced and sold & nbsp; 50,000 
b. Sales price per uni t $70 
c. Carpenter labor to make shelves 600,000 
d. Wood to make the shelves & nbsp; 450,000 
e. Sales staff salaries 80,000 
f. Office and showroom rental expense 1 50,000 
g. Depreciation on carpentry equipment 50,000 
h. Advertising ; 200,000 
i. Sales commissions based on number of units sold 180,000 
j. Miscellaneous fixed manufacturing overhead (support) 150,000 
k. Rent for building where the shelves are made 300,000 
l. Miscellaneous variable manufacturing overhead (support) 350,000 
m. Depreciation for office equipment 10,000 

a. Based on this information, prepare a financial accounting income statement (that is, in the form required under GAAP for U.S. external reporting). 
b. For this information, make appropriate assumptions about cost behavior and assume that direct labor costs vary directly with the number of units produced. How many units must the company sell in order to earn a pretax profit of $500,000? 

Answers

Maurice Tutor
(5)
Status NEW Posted 26 Jul 2017 03:07 PM My Price 14.00

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