Requirement 3 Draper has decided to manufacture billing software to sell to its
ID: 2597474 • Letter: R
Question
Requirement 3
Draper has decided to manufacture billing software to sell to its clients. During the first month of manufacturing, Draper incurred the following costs:
Inventories:
Beginning
Ending
Materials
10,800
10,300
Work in Process
0
21,000
Finished Goods
0
31,500
Other Information:
Direct Materials Purchased
19,000
Plant Utilities
10,000
Plant Janitorial Services
700
Plant Rent
13,000
Sales Salaries Expense
5,000
Customer Hotline Expense
18,000
Delivery Expense
1,700
Direct Labor
190,000
Sales Revenue
750,000
a. Prepare a Schedule of Cost of Goods Manufactured and an Income Statement for the month ended January 31, 2014.
b. If Draper sells 19,750 software products for the month, how much does it cost to manufacture one unit?
Inventories:
Beginning
Ending
Materials
10,800
10,300
Work in Process
0
21,000
Finished Goods
0
31,500
Other Information:
Direct Materials Purchased
19,000
Plant Utilities
10,000
Plant Janitorial Services
700
Plant Rent
13,000
Sales Salaries Expense
5,000
Customer Hotline Expense
18,000
Delivery Expense
1,700
Direct Labor
190,000
Sales Revenue
750,000
Draper Consulting, Inc Schedule of Cost of Goods Manufactured Month Ended January 31, 2014 Beginning work in process inventory Add: Direct materials used: Direct materials used Direct labor Manufacturing overhead Total manufacturing costs to account for LessExplanation / Answer
a. Draper Consulting Inc.
Schedule of Cost of Goods Manufactured
Month ending January 31, 2014
Draper Consulting Inc.
Income Statement
Fot the month ending January 31, 2014
Selling and Administrative Expenses
b. Cost to manufacture one unit = Cost of Goods Sold / Number of units sold = $ 180,700 / 19,750 = $ 9.15 per unit.
$ $ Beginning Work in Process 0 Add : Direct Materials Used Materials, Beginning 10,800 Add: Purchases 19,000 Materials, Ending (10,300) 19,500 Direct Labor 190,000 Manufacturing Overhead Plant Janitorial Services 700 Plant Utilities 10,000 Plant Rent 13,000 23,700 Total Manufacturing Costs incurred during the month 233,200 Less: Work in Process, Ending (21,000) Cost of Goods Manufactured 212,200Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.