The Cost of Goods Sold for the Immaculate Corporation for the Month

question 135

Essay

The cost of goods sold for the Immaculate Corporation for the month of April 2016 was $450,000. Work-in-process inventory at the end of April was 95 percent of the work-in-process inventory at the beginning of the month. Overhead is 80 percent of the direct labor cost. During the month, $110,000 of direct materials were purchased. Revenues for Immaculate were $600,000, and the selling and administrative costs were $70,000.
Other information about Immaculate's inventories and production for April was as follows: Required:
a. Prepare a cost of goods manufactured and cost of goods sold statements.
b. Prepare an income statement.
c. What are the prime costs, conversion costs, and period costs?

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Definitions:

Retention Strategies

Methods and practices aimed at keeping employees engaged and motivated to reduce turnover and retain talent within an organization.

Developmental Move

A job change within an organization that promotes growth, learning, and skill enhancement for an employee.

Dry Promotion

A promotion where an employee is given a higher title or rank without a corresponding increase in pay or benefits.

Lateral Transfer

A move by an employee to another job within the same organization at the same level, usually with similar pay and responsibilities.