Question

Knobloch Corporation has provided the following data for the month of November. 500 units were manufactured Beginning Ending Inventories Raw Materials $21,000 Work in Process $17,000 Finished Goods $35,000 $19,000 38,000 Additional information Raw materials purchases Direct labor cost Manufacturing overhead cost Indirect materials included in manufacturing overhead Sales Selling and administrative expense $76,000 $81,000 $42,000 $6,000 $450,000 137,000 9. 4 points: Direct materials cost is 10. 4 points: Total manufacturing cost is 11. 5 points: Cost of goods manufactured is 12. 5 points: Cost of goods sold total as it would appear on the income statement is 13. 4 points: Gross profit is 14. 5 points: Net operating income is 15. 4 points: Unit product cost is

Answer 1

Cost of Goods Manufactured and Cost of goods sold
Beginning Work in process			$       17,000.00
Direct materials used
Raw material Inventory Beginning	$         21,000.00
Raw material Purchased	$         76,000.00
Raw material available for use	$         97,000.00
Less: Raw material Inventory Ending	$         35,000.00
Direct Material Used (Answer to question 9)		$ 62,000.00
Direct labor		$ 81,000.00
Manufacturing Overheads		$ 42,000.00
Total manufacturing cost incurred during the year			$    1,85,000.00
Total manufacturing cost to account for (Answer to question 10)			$    2,02,000.00
Less: Ending WIP inventory			$       19,000.00
Cost of goods manufactured (Answer to question 11)			$    1,83,000.00
Add: Beginning Finished goods inventory			$       46,000.00
Goods available for sale			$    2,29,000.00
Less: Ending Finished goods inventory			$       38,000.00
Cost of goods sold (Answer to question 12)			$    1,91,000.00

Income statement
Sales	$      4,50,000.00
Less: Cost of Goods sold	$      1,91,000.00
Gross profit (Answer to question 13)	$      2,59,000.00
Selling and administrative expenses	$      1,37,000.00
Net operating income (Answer to question 14)	$      1,22,000.00

Cost of goods manufactured	$      1,83,000.00
Units manufactured	500
Unit product cost (Answer to question 15)	$               366.00