Alhambra Aluminum Company
SuperClassAlhambra Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1.
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Inventory Classification
Raw material . . . . . . . . . . . . . . . . . . . . . | January 1, 20x1
$ 55,000 . . . . . . . . . . . . | December 31, 20x1
$ 75,000 |
|
Work in process . . . . . . . . . . . . . . . . . . . | 110,000 . . . . . . . . . . . . | 125,000 |
|
Finished goods . . . . . . . . . . . . . . . . . . . . | 160,000 . . . . . . . . . . . . | 155,000 |
|
During 20x1, the company purchased $240,000 of raw material and spent $420,000 for direct labor. Manufacturing overhead costs were as follows:
Indirect material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 12,000 |
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 22,000 |
Depreciation on plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 110,000 |
Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 23,000 |
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 35,000 |
Sales revenue was $1,210,000 for the year. Selling and administrative expenses for the year amounted to
$105,000. The firm’s tax rate is 35 percent.
Required:
1. Prepare a schedule of cost of goods manufactured.
2. Prepare a schedule of cost of goods sold.
3. Prepare an income statement.
4. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how both cost schedules and the income statement will change if the following data change: direct labor is $410,000 and utilities cost $24,000.
10 years ago
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alhambra_aluminum_company.docx
