question old world furniture constructs and sells executive style conference tables 4284325

Question

Old World Furniture constructs and sells executive style conference tables. The selling price is $15,000 per table. A unique feature is that the only raw material used in the construction of each table, other than indirect materials like glues and screws, comes entirely from a single tree. Tree prices and other costs of production have remained stable, and Old World is able to use each tree purchased without incurring any significant spoilage. Consider the following 'disorganized” information and complete the indicated requirements. Complete the reconciliation of units on the accompanying blank worksheet, showing the “unit” activity in raw materials, work in process, and finished goods. Calculate the cost of goods manufactured. Calculate the cost of goods sold. Calculate net income. Assume an income tax rate of 30%.

 

question old world furniture constructs and sells executive style conference tables 4284325

Question

Old World Furniture constructs and sells executive style conference tables. The selling price is $15,000 per table. A unique feature is that the only raw material used in the construction of each table, other than indirect materials like glues and screws, comes entirely from a single tree. Tree prices and other costs of production have remained stable, and Old World is able to use each tree purchased without incurring any significant spoilage. Consider the following 'disorganized” information and complete the indicated requirements. Complete the reconciliation of units on the accompanying blank worksheet, showing the “unit” activity in raw materials, work in process, and finished goods. Calculate the cost of goods manufactured. Calculate the cost of goods sold. Calculate net income. Assume an income tax rate of 30%.