Question

Hi, Can I please have help with what I got wrong? Thank you!
Various cost and sales data for Meriwell Company for the just completed year follow: Finished goods inventory, beginning Finished goods inventory, ending Depreciation, factory Administrative expenses Utilities, factory Maintenance, factory Supplies, factory Insurance, factory Purchases of raw materials Raw materials inventory, beginning Raw materials inventory, ending Direct labour Indirect labour Work-in-process inventory, beginning Work-in-process inventory, ending Sales Selling expenses $ 27,000 54,000 21,000 103,000 9,000 61,000 12,000 4,000 132,000 13,000 7,000 77,000 15,000 24,000 26,000 535,000 76,000

Answer 1

1]	Schedule of Cost of Goods Manufactured
	Direct Material Cost:
	Raw materials inventory, beginning	$               13,000
	Purchases of raw materials	$            1,32,000
	Total raw materials available for use	$            1,45,000
	Less: Raw materials inventory, ending	$                  7,000
	Direct Material Cost		$        1,38,000
	Direct labor		$            77,000
	Manufacturing overhead:
	Indirect labor	$               15,000
	Depreciation, factory	$               21,000
	Utilities, factory	$                  9,000
	Maintenance, factory	$               61,000
	Supplies, factory	$               12,000
	Insurance, factory	$                  4,000
	Total manufacturing overhead		$        1,22,000
	Manufacturing costs incurred during the year		$        3,37,000
	Add: WIP inventory, beginning		$            24,000
	Total manufacturing costs		$        3,61,000
	Less: WIP inventory, ending		$            26,000
	Cost of goods manufactured		$        3,35,000
2]	Income Statement
	Sales		$        5,35,000
	Cost of goods sold:
	Finished goods inventory, beginning	$               27,000
	Add: Cost of goods manufactured	$            3,35,000
	Cost of goods available for sale	$            3,62,000
	Deduct: Finished goods inventory, ending	$               54,000
	Cost of goods sold		$        3,08,000
	Gross profit		$        2,27,000
	Selling and administrative expenses:
	Administrative expenses	$            1,03,000
	Selling expenses	$               76,000	$        1,79,000
	Net income		$            48,000
3]	Direct materials per unit	$                  13.80
	Factory depreciation per unit	$                    2.10
4]		Average Cost	Total Cost
	Direct materials per unit	$                  13.80	$        2,76,000
	Factory depreciation	$                    1.05	$            21,000