Homework SourseAlhambra Aluminum Company a manufacturer of recyclable soda
Alhambra Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1.
During 20x1, the company purchased $260,000 of raw material and spent $400,000 for direct labor. Manufacturing overhead costs were as follows:
Sales revenue was $1,111,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firm\'s tax rate is 40 percent.
1.
value:
3.30 points
Required information
References
eBook & Resources
ExerciseLearning Objective: 02-01 Explain what is meant by the word cost.Learning Objective: 02-06 Prepare a schedule of cost of goods manufactured, a schedule of cost of goods sold, and an income statement for a manufacturer.
Difficulty: MediumLearning Objective: 02-03 Describe the role of costs in published financial statements.
Check my work
2.
value:
3.30 points
Required information
References
eBook & Resources
ExerciseLearning Objective: 02-01 Explain what is meant by the word cost.Learning Objective: 02-06 Prepare a schedule of cost of goods manufactured, a schedule of cost of goods sold, and an income statement for a manufacturer.
Difficulty: MediumLearning Objective: 02-03 Describe the role of costs in published financial statements.
Check my work
3.
value:
3.40 points
Required information
| Alhambra Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1. |
Solution
1. Cost of goods manufactured :
Manufacturing overhead :
Cost of goods sold schedule :
3. Income statement :
| Beginning work in process | 120000 | ||
| Beginning raw material inventory | 60000 | ||
| Raw material purchase | 260000 | ||
| Less: Ending raw material inventory | (70000) | ||
| Raw material used | 250000 | ||
| Direct labour | 400000 | ||
| Manufacturing overhead : | |||
| Indirect material | 10000 | ||
| Indirect labour | 23000 | ||
| Depreciation on plant and equipment | 100000 | ||
| Utilities | 23000 | ||
| Others | 30000 | 186000 | |
| Total manufacturing cost | 836000 | ||
| Total cost of work in process | 956000 | ||
| Less: Ending work in process | (115000) | ||
| Cost of goods manufactured | 841000 |
