d)   Prepare a schedule of cost of goods manufactured for the year ended June 30, 2020, clearly showing total manufacturing costs & total manufacturing costs to account for. e)    Prepare an income statement for Bubba Manufacturing for the year ended June 30, 2020, clearly showing cost of goods sold. f)      During the year, Bubba Manufacturing Company produced 4,000 units of product. What was the production cost of each unit? g)    How does the format of the income statement for a manufacturing entity differ from the income statement of a merchandising entity?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bubba Manufacturing Company provided the following information for the fiscal year to June 30, 2020:

 

Inventories

01/07/2019

30/06/2020

Direct Materials

$72,000

$65,000

Work-in-Process

107,000

128,000

Finished Goods

149,500

141,700

 

Other information:

 

Office cleaner’s wages

4,500

Sales Revenue

1,031,000

Raw materials purchased

235,000

Factory wages

239,700

Indirect materials

23,500

Delivery truck driver’s wages

15,400

Indirect labor

9,500

Depreciation on factory plant & equipment

32,000

Insurance 1

60,000

Depreciation on delivery truck

7,250

Utilities 2

118,750

Administrative salaries

41,250

Special Design Costs

5,000

Selling expenses

9,000

Sales Commission

2% of gross profit

 

Of the total insurance, 66⅔% relates to the factory facilities & 33⅓% relates to general

& administrative costs.

Of the total utilities, 80% relates to the manufacturing facilities & 20% relates to the office area.

 

  1. d)   Prepare a schedule of cost of goods manufactured for the year ended June 30, 2020, clearly showing total manufacturing costs & total manufacturing costs to account for.
  2. e)    Prepare an income statement for Bubba Manufacturing for the year ended June 30, 2020, clearly showing cost of goods sold.
  3. f)      During the year, Bubba Manufacturing Company produced 4,000 units of product. What was the production cost of each unit?
  4. g)    How does the format of the income statement for a manufacturing entity differ from the income statement of a merchandising entity?

 

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