Question

You have been asked by the CEO of Mountaineer Co. to assist in analyzing product costs. This analysis is used in internal decision making and in reporting to investors. The following Tableau Dashboard provides data needed for the analysis. Raw Materials Inventories Raw materials, beginning Raw materials purchases Raw materials used Romaterials anding $0 $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 Work in Process & Finished Goods Inventories Work in Process Finished Goods Rent expense. Factory $50,000 54,000 50,000 $40,000 43,000 Repairs expense Faction $30,000

Answer 1

Cost of goods manufactured

Direct materials
Raw materials beginning	$60,000
Raw materials Purchased	$140,000
Raw materials available for use	$200,000
Less: Raw materials Ending	($64,000)
Direct materials usee		$136,000
Direct labor		$180,000
Factory overhead
Rent expense- Factory	$45,000
Factory utilities	$9,500
Indirect labor	$38,000
Repairs expense- Factory	$11,500
Indirect materials	$14,000
Total factory overhead		$118,000
Total Manufacturing costs		$434,000
Beginning work in process		$43,000
Total cost in process		$477,000
Less: Ending Work-in-process		($33,000)
Cost of goods manufactured		$444,000

Computation of cost of goods sold

Beginning finished goods	$50,000
Add: Cost of goods sold	$444,000
Cost of goods available for sale	$494,000
Less: Ending finished goods	($54,000)
Cost of goods sold	$440,000

Income statement

Sales		$1,000,000
Cost of goods sold
Beginning finished goods	$50,000
Cost of goods manufactured	$444,000
Goods available for sale	$494,000
Less: Ending finished goods	($54,000)
Cost of goods sold		$440,000
Gross profit		$560,000
Operating expenses
Selling expenses	$75,000
General and administrative expenses	$103,500
Total operating expenses		$178,500
Net income		$381,500