4. Determine net income for 20x1, assuming a 30% income tax rate.5. Determine the number of completed units manufactured during the year. The following selected information was extracted from the 20x1 accounting records of Lone Oak Products:Raw material purchasesDirect labor$ 177,000255,000108,000133,000Indirect laborSelling and administrative salariesBuilding depreciation*Other selling and administrative expensesOther factory costsSales revenue ($130 per unit)80,000195,000342,0001,495,000*Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was usedfor selling and administrative functions.Inventory data:ItemsDecember 31Raw materialWork in process$ 18, 20062, 10097,900Finished goods**The January 1 and December 31 finished-goods inventory consisted of 1,350 units and 1,190 units, respectively.January 1$ 15,90035,900113,100

Income statement is one of the financial statements of a business which shows all income and…

Answered: 4. Determine net income for 20x1,…

4. Determine net income for 20x1, assuming a 30% income tax rate. 5. Determine the number of completed units manufactured during the year.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Question

4. Determine net income for 20x1, assuming a 30% income tax rate.

5. Determine the number of completed units manufactured during the year.

The following selected information was extracted from the 20x1 accounting records of Lone Oak Products:
Raw material purchases
Direct labor
$ 177,000
255,000
108,000
133,000
Indirect labor
Selling and administrative salaries
Building depreciation*
Other selling and administrative expenses
Other factory costs
Sales revenue ($130 per unit)
80,000
195,000
342,000
1,495,000
*Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was used
for selling and administrative functions.
Inventory data:
Items
December 31
Raw material
Work in process
$ 18, 200
62, 100
97,900
Finished goods*
*The January 1 and December 31 finished-goods inventory consisted of 1,350 units and 1,190 units, respectively.
January 1
$ 15,900
35,900
113,100

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