Pearce Manufacturing Inc. incurred the following costs in February:

Direct labor	$40,000	 	       Advertising costs $1,000
Indirect labor	$15,000	 	        Factory rent	$4,000
Administrative salaries	$8,000	 	Factory depreciation $2,000
Raw materials purchased	$10,000	 	Administrative rent $3,000
Indirect materials used	$4,000	 	Administrative depreciation $1,000
 	 	 	 	 
 	 	 	 	 
In addition, the following information is also available:
 	 	 	 	 
 	       Beginning	 Ending	 
Raw materials	$2,000	 	$4,000	 
Work-in-process	$25,000	 	$18,000	 
Finished goods	$4,000	 	$12,000	 
 	 	 	 	 
Number of units produced	10,000 units	 	 	 
Number of units sold	 	 	 	 
(sales price of $25 per unit)	9,000 units	 	 	 


1.Calculate total period costs.


2.Calculate raw materials used.

3.Calculate cost of goods manufactured.

4.Calculate the product cost per unit.

5Calculate cost of goods sold.

6.Calculate net operating income. (Ignore taxes)

 


The following information is available for the Brown Company for the month ended July 31:

Direct materials purchased	$21,000
Direct labor (2,500 hrs@$12)	$30,000
Indirect labor	$3,000
Indirect materials	$2,500
Office supplies expense	$100
Factory equipment depreciation	$2,000
Office equipment depreciation	$750
Administrative expenses	$20,000
Office utilities	$75
Factory utilities	$200
Marketing expense	$2,500
Sales revenue	$150,000
Sales commissions expense	$1,500
 

 	                       Beginning	 Ending
Direct materials inventory	$27,000	 	$24,500
Work in process inventory	$25,000	 	$29,000
Finished goods inventory	$22,000	 	$15,000


7.Determine the direct materials used in July.



8.Determine cost of goods manufactured in July.

 
9.Determine cost of goods sold for July


10.Prepare an income statement for July. (Ignore taxes)