Jordan Company produced 150,000 floor lamps during the past cale


Question Description:

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Jordan Company produced 150,000 floor lamps during the past calendar year. Jordan had 2,500 floor lamps in finished goods inventory at the beginning of the year. At the end of the year, there were 11,500 floor lamps in finished goods inventory. The lamps sell for $50 each. Jordan’s accounting records provide the following information for the past year: Purchases of direct materials …………………………$1,675,000 Direct materials inventory, January ………………….. 1 380,000 Direct materials inventory, December 31 ……………. 327,000 Direct labor …………………………………………… 2,000,000 Indirect labor …………………………………………. 790,000 Depreciation, factory building ……………………….. 1,100,000 Depreciation, factory equipment ……………………… 630,000 Property taxes on the factory …………………………. 65,000 Utilities, factory ………………………………………. 150,000 Insurance on the factory ………………………………. 200,000 Research and development ……………………………. 120,000 Salary, sales supervisor ………………………………… 85,000 Commissions, salespersons ……………………………. 370,000 General administration ………………………………… 390,000 Work in process inventory, January 1 …………………. 450,000 Work in process inventory, December 31 ……………… 750,000 Finished goods inventory, January 1 …………………… 107,500 Finished goods inventory, December 31 ………………. 489,000 Required: 1. Prepare a cost of goods manufactured statement. 2. Compute the cost of producing one floor lamp last year. 3. Prepare an income statement on an absorption-costing basis.

Answer

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