Newberry Company

Statement of cost of goods manufactured

Beginning raw materials

Add: Purchases
Raw materials available for use
Less: Ending raw materials
Direct materials used
Direct labor
Factory overhead
Total manufacturing costs
Add: Beginning goods in process
Total cost of goods in process
Less: Ending goods in process
Cost of goods manufactured

10,000
250,000
260,000
15,000
245,000
135,000
345,000
725,000
20,000
745,000
35,000
$710,000

Hirschman Corporation
Statement of cost of goods sold
For the month ended April 30, 2014
Finished goods inventory, beginning
Add: Cost of goods manufactured
Total cost of goods available for sale
Less: Finished goods inventory, ending
Cost of goods sold, unadjusted
Less: Overapplied overhead
Cost of goods sold, adjusted

46,000
179,000
225,000
38,000
187,000
2,000
$185,000

Variable costing
Direct materials
Direct labor
Variable manufacturing overhead
Unit product cost

46
41
3
90

Sales
Variable costs:
Direct materials
Direct labor
Variable manufacturing overhead
Variable selling and administrative
Total variable costs
Contribution margin

$ 410,400
$ 136,800
79,200
10,800
14,400
241,200
$169,200

Whitman Corporation
Income Statement
For the month ended May 31, 2014
Sales
Less: Cost of goods sold
Gross profit
Less: Operating expenses
Selling expense
Variable
Fixed
Administrative expense
Variable
Fixed
Net Income

$ 5,009,800
3,263,400
1,746,400

$ 399,600
155,600 $ 555,200
177,600
370,400

548,000

1,103,200
$ 643,200

Total expected units produced

Total expected material moves
Expected direct labor hours per unit
Expected direct labor hours
Allocated amount

Wall Mirrors Specialty Total

Windows
7,000
1,000
700
900
6
4
42,000
4,000
46,000
15,053 b.

Total Cost
Activity cost pools
Assembling products
Designing products
Setting up batches

$
$
$

49,830
557,220
38,180

Total activity

Activity rates

4,530 $ 11.00
3,012 $ 185.00
830 $ 46.00

Activity cost pools

Activity rate
Setting up batches
$
74.76
Processing customer orders
$
55.40
Assembling products
$
1.36
Total overhead costs allocated

33
1
368

Allocated costs
$ 2,467.08
$
55.40
$
500.48
$3,022.96

Equipment depreciation
Indirect labor
Overhead costs assigned:
Equipment depreciation
Indirect labor
Total

Processing
0.20
0.20

$
$

14,400
1,600
16,000

Setting up
0.40
0.30

$
$

28,800
2,400
31,200

Other
0.40
0.50

$
$

Total
28,800 $ 72,000
4,000
8,000
32,800 $80,000

1
2
3
4
5
6
7
8
9
10

direct
indirect
direct
indirect
direct
direct
indirect
indirect
direct
indirect

beginning work in process

Started in April
Total units to account for

15,000
40,000
55,000

Completed and transferred

Ending work in process
Total units accounted for

42,500
12,500
55,000

Material costs
Beginning work in process
Current costs
Total
Divided by EUP
Cost per EUP

$ 5,500
18,000
23,500
55,000
$ 0.43 D

Equivalent units
Materials
42,500
12,500
55,000

beginning work in process

Started in process
Total units to account for

30,000
90,000
120,000

Completed and transferred

Ending work in process
Total units accounted for

100,000
20,000
120,000

Equivalent units
Conversion costs
100,000
12,000
112,000 B.