Assignment # 2.

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1. Calculate the Direct materials used in production for last year.
124,000. +250,000.00-102,000= $272,000.00
2. Calculate total prime cost.
272,000.00 +140,000.00=$412,000.00
3.Calculate total conversion cost
140,000.00 + 300,000.00 = $440,000.00
4. Prepare a cost of goods sold statement for last year.
Brody Company
Statement of Cost of Goods Manufactured
For last year
Direct Materials
Direct Labor
Overhead
Total Manufacturing Cost
Add: Beginning work in process
Less: Ending work in process
Cost of Goods Manufactured

$272,000.00
$140,000.00
$300,000.00
$712,000.00
$124,000.00
$(130,000.00)
$ 706,000.00

5. Prepare a cost of goods sold statement for last year.

Brody Company
Statement of Cost of Goods Manufactured
For last year
Cost of goods manufactured

$706,000

Add: Beginning inventory, Finished goods

$84,000

Less: Ending inventory, Finished goods

$(82,000)

Cost of goods sold

$708,000

6. Prepare an income statement for last year. Show the percentage of sales
that each line item represents.
Utilities, sales office

$1,800.00

Sales office salaries

$90,000.00

Sales commissions

$60,000.00

Selling expense

$ 151,800

Depreciation on headquarters building

$50,000

Property taxes, headquarters

$18,000

Administrative salaries

$150,000

Administrative expense

$218,000
Brody Company
Income Statement
For last year
Percent

Sales

$ 1,200,000.00

100
Cost of goods sold

708,000.00

59
Gross margin

$492,000.000

41
Less: Operating expenses
Selling expenses

$151,800.00

12.65
Administrative expense

$218,000.00

18.17
Operating income
10.18

$122,200.000