Assignment Methods Brody Company makes industrial cleaning solvents

 Assignment Methods Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10- gallon drums. Brody provided the following information for last year: Raw materials purchases $250,000 Direct labor 140,000 45,000 30,000 Depreciation on factory equipment Depreciation on factory building Depreciation on headquarters building Factory insurance 60,000 15,000 Property taxes: 20,000 Factory Headquarters Utilities for factory 18,000 34,000 Utilities for sales office 2,400 Administrative salaries 150,000 159,000 Indirect labor salaries Sales office salaries 90,000 127,000 124,000 Beginning balance, raw materials Beginning balance, work in process Beginning balance, finished goods Ending balance, raw materials 84,000 105,000
130,000 Ending balance, work in process Ending balance, finished goods 79,000 Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales. Required: 1. Calculate the direct materials used in production for last year. $ 2. Calculate total prime cost. 3. Calculate total conversion cost. Feedback Check My Work 1. See Cornerstone 2.2 2. See Cornerstone 2.1 3. See Cornerstone 2.1
4. Prepare a cost of goods manufactured statement for last year. Brody Company Statement of Cost of Goods Manufactured For Last Year Direct materials $ 272,000 Direct labor 140,000 Overhead -344,400 X $ 756,400 X Total manufacturing cost Add: Beginning work in process 124,000 ? Less: Ending work in process 130,000 Cost of goods manufactured $ 750,400 x Feedback Check My Work See Cornerstone 2.2 Calculate the unit product cost. If required, round your answer to the nearest cent. $ 7.50 ?
5. Prepare a cost of goods sold statement for last year. Brody Company Statement of Cost of Goods Sold For Last Year Cost of goods manufactured -750,400 X Add: Beginning inventory, Finished goods 84,000 ? Less: Ending inventory, Finished goods -79,000 ? Cost of goods sold $ 755,400 x Feedback
6. Prepare an income statement for last year. Show the percentage of sales that each line item represents. When required, round the percent to four decimal places before converting to a percentage. For example, .88349 would be rounded to .8835 and entered as 88.35. Brody Company Income Statement For Last Year Percent Sales $ % Cost of goods sold % Gross margin $ % Less: Operating expenses Selling expenses % Administrative expenses % Operating income %