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Shaler Corp 2014 Cost Analysis Report

The document provides financial information for Shaler Corporation for 2014, including beginning and ending inventory amounts. 1. A schedule of cost of goods manufactured was prepared, showing direct materials used of $318,000, direct manufacturing labor of $212,000, and total indirect manufacturing costs of $274,000, for a total manufacturing cost of $804,000. 2. An income statement was also prepared, with revenues of $1,200,000 and cost of goods sold of $868,000, for a gross margin of $332,000. Operating expenses were $192,000 and operating income was $140,000.

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Franco Pettinato
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59 views3 pages

Shaler Corp 2014 Cost Analysis Report

The document provides financial information for Shaler Corporation for 2014, including beginning and ending inventory amounts. 1. A schedule of cost of goods manufactured was prepared, showing direct materials used of $318,000, direct manufacturing labor of $212,000, and total indirect manufacturing costs of $274,000, for a total manufacturing cost of $804,000. 2. An income statement was also prepared, with revenues of $1,200,000 and cost of goods sold of $868,000, for a gross margin of $332,000. Operating expenses were $192,000 and operating income was $140,000.

Uploaded by

Franco Pettinato
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Shaler Corporation

2014

Beg. Of 2014

End of

Direct Materials Inventory

130,000

68,000

Work in Process Inventory

166,000

144,000

Finished Goods Inventory

246,000

204,000

Purchases of Direct Materials


256,000
Direct Manufacturing Labor
212,000
Indirect Manufacturing Labor
96,000
Indirect Materials
Plant Insurance

28,000
4,000

Depreciation- plant, building, equipment


42,000
Plant Utilities
24,000
Repairs and Maintenance- plant
16,000
Equipment Leasing Costs

64,000

Marketing, Distribution, and customer service costs


124,000
General and Administrative Costs
68,000
1. Prepare a schedule for the cost of goods manufactured for 2014.
2. Revenues (in thousands) for 2014 were 1,200,000. Prepare the
income statement for 2014.

Shaler Corporation
Schedule of Cost of Goods Manufactured
Year Ending December 31st, 2014
(in thousands)
Direct Materials Cost
Beginning Inventory 2014
Purchases of direct materials
Cost of direct materials available for use
Ending Inventory 2014
Direct Materials Used
$318,000
Direct Manufacturing labor cost
$212,000
Indirect Manufacturing Labor
Indirect Materials
Plant Insurance
Depreciation-property, building, equipment
Plant Utilities
Repairs and Maintenance plant
Equipment Lease Cost
Total Indirect Manufacturing Cost
$274,000
Manufacturing Costs incurred during 2014
$804,000
Add Beginning work in process inventory 2014
$166,000
Total Manufacturing costs to account for
$970,000
Deduct ending work in process inventory 2014
$144,000
Cost of Goods manufactured
$826,000

$130,000
$256,000
$386,000
$68,000

$96,000
$28,000
$4,000
$42,000
$24,000
$16,000
$64,000

Shaler Corporation
Income Statement
Year Ending December 31st, 2014
(in thousands)
Revenues
Cost of Goods Sold:
Beginning Finished Goods 2014
Cost of Goods Manufactured

$1,200,000
$246,000
$826,000

Cost of Goods Available for Sale


$1,072,000
Ending Finished Goods 2014
$204,000
Cost Of Goods Sold
$868,000
Gross Margin
$332,000
Operating Cost:
Marketing, Distribution and Customer Service Cost
$124,000
General and Administrative Cost
$68,000
Total Operating Costs
$192,000
Operating Income
$140,000

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