Reno Company Provided the Following Information Regarding Its Operations for the Month

question 41

Essay

Reno Company provided the following information regarding its operations for the month ending September 30, 2013: $$\begin{array} { | l | r | } \hline \text { Administrative costs } & \$ 30,000 \\\hline \text { Depreciation on factory equipment } & 12,000 \\\hline \text { Indirect materials } & 2,000 \\\hline \text { Marketing and distribution costs } & 24,000 \\\hline \text { Salaries for factory supervisors } & 20,000 \\\hline \text { Wages for production workers } & 26,000 \\\hline \text { Raw materials used } & 38,000 \\\hline \text { Sales revenue } & 196,000 \\\hline \text { Selling costs } & 18,000 \\\hline \text { Utilities for production facilities } & 8,000 \\\hline & \\\hline \text { Number of units produced } & 20,000 \\\hline \text { Number of units sold } & 15,000 \\\hline\end{array}$$
Required:
1) Compute the firm's total manufacturing overhead cost.
2) Prepare a schedule of inventory costs that shows total product costs, ending inventory, and cost of goods sold; and
3) Prepare an income statement for the month ending September 30, 2013.

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Definitions:

English Toleration Act

A 1690 act of Parliament that allowed all English Protestants to worship freely.

Non-Puritan Merchants

Merchants operating in the American colonies who did not adhere to Puritan religious principles, often playing a significant role in the economic life of the colonies.

Puritan Women

Refers to women part of the Puritan religious group in the 16th and 17th centuries, known for their strict moral codes and significant role in family and community life.

Charter Revoked

The act of an authoritative body withdrawing the rights or privileges conveyed by a charter, typically referring to the termination of a corporation's or organization's charter.