Chat with AI
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 5
PRIME COST, CONVERSION COST, PREPARATION OF INCOME STATEMENT: MANUFACTURING FIRM
Roundabout Shoe Company makes walking shoes. During the last calendar year, a total of 90,000 pairs of shoes were made, and 89,000 were sold for $54.00 per pair. The actual unit cost per pair of shoes is as follows:
The selling expenses consisted of a commission of $2.70 per pair sold and advertising co-payments totaling $236,000. Administrative expenses, all fixed, equaled $183,000. There were no beginning and ending work-in- process inventories. Beginning finished goods inventory was $235,500 for 6,000 pairs of shoes.
Required:
1. Calculate the number and the dollar value of walking shoes in ending finished goods inventory.
2. Prepare a cost of goods sold statement.
3. Prepare an absorption-costing income statement.
Roundabout Shoe Company makes walking shoes. During the last calendar year, a total of 90,000 pairs of shoes were made, and 89,000 were sold for $54.00 per pair. The actual unit cost per pair of shoes is as follows:
The selling expenses consisted of a commission of $2.70 per pair sold and advertising co-payments totaling $236,000. Administrative expenses, all fixed, equaled $183,000. There were no beginning and ending work-in- process inventories. Beginning finished goods inventory was $235,500 for 6,000 pairs of shoes.
Required:
1. Calculate the number and the dollar value of walking shoes in ending finished goods inventory.
2. Prepare a cost of goods sold statement.
3. Prepare an absorption-costing income statement.
Explanation
Verified
Verified
1.
Calculate Ending finished goods inven...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
