The following calendar year information is taken from the December 31, 2011, adjusted trial balance and other records of Azalea Company.
|
Advertising expense |
$ 19,125 |
Direct labor |
$ 650,750 |
|
Depreciation expense—Office equipment |
8,750 |
Indirect labor |
60,000 |
|
Depreciation expense—Selling equipment |
10,000 |
Miscellaneous production costs |
8,500 |
|
Depreciation expense—Factory equipment |
32,500 |
Office salaries expense |
100,875 |
|
Factory supervision |
122,500 |
Raw materials purchases |
872,500 |
|
Factory supplies used |
15,750 |
Rent expense—Office space |
21,125 |
|
Factory utilities |
36,250 |
Rent expense—Selling space |
25,750 |
|
Inventories |
|
Rent expense—Factory building |
79,750 |
|
Raw materials, December 31, 2010 |
177,500 |
Maintenance expense—Factory equipment |
27,875 |
|
Raw materials, December 31, 2011 |
168,125 |
Sales |
3,275,000 |
|
Goods in process, December 31, 2010 |
15,875 |
Sales discounts |
57,500 |
|
Goods in process, December 31, 2011 |
14,000 |
Sales salaries expense |
286,250 |
|
Finished goods, December 31, 2010 |
164,375 |
|
|
|
Finished goods, December 31, 2011 |
129,000 |
|
|
Required
1. Each team member is to be responsible for computing one of the following amounts. You are not to duplicate your teammates’ work. Get any necessary amounts from teammates. Each member is to explain the computation to the team in preparation for reporting to class.
a. Materials used.
b. Factory overhead.
c. Total manufacturing costs.
d. Total cost of goods in process.
e. Cost of goods manufactured.
2. Check your cost of goods manufactured with the instructor. If it is correct, proceed to part (3).
3. Each team member is to be responsible for computing one of the following amounts. You are not to duplicate your teammates’ work. Get any necessary amounts from teammates. Each member is to explain the computation to the team in preparation for reporting to class.
a. Net sales.
b. Cost of goods sold.
c. Gross profit.
d. Total operating expenses.
e. Net income or loss before taxes.