Exhibit 1: Wayne Manufacturing Co. Use the following informa…
Exhibit 1: Wayne Manufacturing Co. Use the following information to answer the following three questions: Following is partial operating information from Wayne Manufacturing Co. Wayne Manufacturing Co. Operating information for the year ended December 31, 2020 Item Amount Direct materials issued to production 350,000 Indirect Materials Issued to Production 75,000 Direct Manufacturing Labor -1- Indirect manufacturing labor 30,000 Property taxes on manufacturing plant building 25,000 Miscellaneous plant overhead 50,000 Salespersons’ company vehicle costs 21,500 Sales Commissions 75,000 Depreciation of manufacturing equipment 120,000 Depreciation of office equipment 85,000 Manufacturing plant utilities 95,000 General office expenses 100,000 Marketing and distribution costs 64,500 Sales Revenue 2,150,000 Cost of Goods Sold -2- Cost of Goods Manufactured 797,500 Allocated Manufacturing Overhead Costs -3- Actual Manufacturing Overhead Costs Incurred -4- Traceable (Direct) Costs incurred during 2020 525,000 Total Manufacturing Costs incurred during 2020 -5- Conversion Costs 437,500 Total Period Costs 346,000 Gross Margin (Gross Profit) 1,342,500 Inventory Accounts Balances 01/01/2020 12/31/2020 Work-in-Process Control -6- 125,000 Finished Goods Inventory Control 55,000 -7- Wayne uses an normal costing system and applies overhead at a rate of 150% of Direct Manufacturing Labor.
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