Helmer Sporting Goods Company Manufactured 100,000 Units in 2015 and Reported

question 155

Essay

Helmer Sporting Goods Company manufactured 100,000 units in 2015 and reported the following costs:
$$\begin{array} { l r l r } \text { Sandpaper } & \$ 32,000 & \text { Leasing costs-plant } & \$ 384,000 \\\text { Materials handling } & 320,000 & \text { Depreciation-quipment } & 224,000 \\\text { Coolants \& lubricants } & 22,400 & \text { Property taxes-equipment } & 32,000 \\\text { Indirect manufacturing labor } & 275,200 & \text { Fire insurance-equipment } & 16,000 \\\text { Direct manufacturing labor } & 2,176,000 & \text { Direct material purchases } & 3,136,000 \\\text { Direct materials, } 1 / 1 / 15 & 384,000 & \text { Direct materials, } 12 / 31 / 15 & 275,200 \\\text { Finished goods, } 1 / 1 / 15 & 672,000 & \text { Sales revenue } & 12,800,000 \\\text { Finished goods, } 12 / 31 / 15 & 1,280,000 & \text { Sales commissions } & 640,000 \\\text { Work-in-process, } 1 / 1 / 15 & 96,000 & \text { Sales salaries } & 576,000 \\\text { Work-in-process, } 12 / 31 / 15 & 64,000 & \text { Advertising costs } & 480,000 \\& & \text { Administration costs } & 800,000\end{array}$$ Required:
a.What is the amount of direct materials used during 2015?
b.What manufacturing costs were added to WIP during 2015?
c.What is cost of goods manufactured for 2015?
d.What is cost of goods sold for 2015?

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Definitions:

Production Workers

Individuals involved in the manufacturing process who operate machinery, assemble products, and perform other tasks required to produce goods.

Emotional Appeals

Persuasive techniques that attempt to influence an audience by targeting their feelings, desires, or fears.

Isolation

A state of being separated from others, which can be physical, social, or emotional, leading to varying levels of impact on individuals or groups.

Manipulate Photographs

The process of altering images through digital or traditional methods to change their appearance, context, or message.