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Pearce Manufacturing Inc In Addition,the Following Information Is Also Available

Question 83

Essay

Pearce Manufacturing Inc.incurred the following costs in February:
 Direct labour $40000 Advertising costs $1000 Indirect labour 15000 Factory rent 4000 Administrative salaries 8000 Factory depreciation 2000 Raw materials purchased 10000 Administrative rent 3000 Indirect materials used 4000 Administrative depreciation 1000\begin{array}{lrll}\text { Direct labour } & \$ 40000 & \text { Advertising costs } & \$ 1000 \\\text { Indirect labour } & 15000 & \text { Factory rent } & 4000 \\\text { Administrative salaries } & 8000 & \text { Factory depreciation } &2000\\\text { Raw materials purchased } & 10000 & \text { Administrative rent }&3000 \\\text { Indirect materials used } & 4000 & \text { Administrative depreciation } & 1000\end{array}

In addition,the following information is also available:
 Raw materials  Work-in-process  Finished goods Number of units produced Number of units sold (sales price of $25 per unit)  Beginning Ending $2000$4000250001800040001200010000 units 9000 units \begin{array}{c}\begin{array}{l}\\ \text { Raw materials }\\ \text { Work-in-process }\\ \text { Finished goods}\\\\ \text { Number of units produced}\\ \text { Number of units sold}\\ \text { (sales price of \( \$ 25 \) per unit) }\\\end{array}\begin{array}{rr}\underline{\text { Beginning} } &\underline{ \text { Ending }}\\\$ 2000 & \$ 4000 \\25000 & 18000 \\4000 & 12000 \\\\& 10000 \text { units } \\\\& 9000 \text { units }\end{array}\end{array}






Required:
A. Calculate total period costs.
B. Calculate raw materials used.
C. Calculate cost of goods manufactured.
D. Calculate the product cost per unit.
E. Calculate cost of goods sold.
F. Calculate net income. (ignore taxes)

Correct Answer:

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A. Total period costs blured image d00 blured image
B....

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