Part 1 Canine Nutritionists is a manufacturer of grains for dogs. The following information pertains to operations during the 2021 calendar year. Inventory Data: 1/1/2021 Purchases 31/12/2021 Raw Materials $750,000 $4,330,000 $807,000 Indirect Materials 55,000 320,000 Work in Progress 924,000 Finished Goods 1,142,600 The following additional information is also available: Sales Revenue Direct Factory Labor Indirect Factory Labor Total Depreciation ¹ Total Utilities 2 Distribution & Customer Service Costs Insurance on Plant & Equipment Property Taxes 3 Administrative Wages & Salaries Advertising Expenses Sales Commission n/a n/a 71,500 814,750 1,720,200 $14,776,000 4,371,000 1,232,250 400,000 525,000 76,800 585,000 90,000 1,076,000 57,700 5% of Sales Revenue Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general and administrative costs. 2 Of the total utilities, 75% relates to manufacturing and 25% relates to general and administrative costs. 3 The property taxes should be shared: 85% manufacturing & 15% general & administrative costs.
Part 1 Canine Nutritionists is a manufacturer of grains for dogs. The following information pertains to operations during the 2021 calendar year. Inventory Data: 1/1/2021 Purchases 31/12/2021 Raw Materials $750,000 $4,330,000 $807,000 Indirect Materials 55,000 320,000 Work in Progress 924,000 Finished Goods 1,142,600 The following additional information is also available: Sales Revenue Direct Factory Labor Indirect Factory Labor Total Depreciation ¹ Total Utilities 2 Distribution & Customer Service Costs Insurance on Plant & Equipment Property Taxes 3 Administrative Wages & Salaries Advertising Expenses Sales Commission n/a n/a 71,500 814,750 1,720,200 $14,776,000 4,371,000 1,232,250 400,000 525,000 76,800 585,000 90,000 1,076,000 57,700 5% of Sales Revenue Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general and administrative costs. 2 Of the total utilities, 75% relates to manufacturing and 25% relates to general and administrative costs. 3 The property taxes should be shared: 85% manufacturing & 15% general & administrative costs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1) Calculate the Raw material used by Canine Nutritionists.
2) Calculate the indirect materials used by Canine Nutritionist.
3) What is the total manufacturing
4) Determine the prime cost & Conversion cost of the product manufactured.
5) Prepare a schedule of cost of goods manufactured for the year ended December 31, 2021, clearly showing total manufacturing cost & total
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Step 1 Introduction
VIEWStep 2 Part 1) Computation of Raw materials used
VIEWStep 3 Part 2) Computation of Indirect materials used
VIEWStep 4 Part 3) Computation of Manufacturing overhead
VIEWStep 5 Part 4) Computation of Prime cost & conversion cost
VIEWStep 6 Part 5) Computation of cost of goods manufactured
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What is the unit product cost if Canine Nutritionists manufactured 18,500 bags of grains for the year?
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