The following information for Jimmy Hill Inc. is provided. Use this information

Question

The following information for Jimmy Hill Inc. is provided. Use this information to answer the following eight questions: Materials Inventory (Jan. 1, 2016) . . . . . . . . . . . . . . . $26,500
Work-in-process Inventory (Jan. 1, 2016) . . . . . . . . . . 32,100
Finished Goods Inventory (Jan. 1, 2016) . . . . . . . . . . . 16,400
Cost of materials purchased . . . . . . . . . . . . . . . . . . . 162,400
Depreciation - factory . . . . . . . . . . . . . . . . . . . . . . . . 36,200
Direct labor costs . . . . . . . . . . . . . . . . . . . . . . . . . . 231,300
Factory insurance expense . . . . . . . . . . . . . . . . . . . . . . 1,800
Factory supervisors salary . . . . . . . . . . . . . . . . . . . . . 39,500
Misc. indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,200
Miscellaneous factory expenses . . . . . . . . . . . . . . . . . . . 9,600
Office supplies consumed . . . . . . . . . . . . . . . . . . . . . . . 3,400
Power - factory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27,100
President's salary . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,000
Sales and advertisement . . . . . . . . . . . . . . . . . . . . . . . 18,000
Small tools expense . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,100
Materials inventory (Dec. 31, 2016) . . . . . . . . . . . . . . . .28,200
Work-in-process inventory (Dec. 31, 2016) . . . . . . . . . 34,700
Finished Goods Inventory (Dec. 31, 2016) . . . . . . . . . . .13,900

Net sales for Jimmy Hill Inc. during 2016 were $850,000, and a total of 3,400 units were produced (completed) during the year. Compute the following for 2016:

1. Cost of materials used

2, Factory overhead

3.Total manufacturing cost

4. Cost of goods manufactured

5. Cost of Goods sold 6. Gross margin

7. Net Income(Loss)

8. Unit Cost

Explanation / Answer

1. Cost of Materials used :

    Material inventroy (Jan 1, 2016)                               $26,500

    Add: Purchase of Materials                                      162,400

    Less: Material Inventory (Dec. 31, 2016)                (28,200)

    Cost of materials used                                            $160,700

             Presedent salary                                       (110,000)

             Sales & advertisement                               (18,000)

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