jordan company produced 150 000 floor lamps during the past cale 273788

Jordan Company produced 150,000 floor lamps during the past calendar year. Jordan had 2,500 floor lamps in finished goods inventory at the beginning of the year. At the end of the year, there were 11,500 floor lamps in finished goods inventory. The lamps sell for $50 each. Jordan’s accounting records provide the following information for the past year:

Purchases of direct materials …………………………$1,675,000

Direct materials inventory, January ………………….. 1 380,000

Direct materials inventory, December 31 ……………. 327,000

Direct labor …………………………………………… 2,000,000

Indirect labor …………………………………………. 790,000

Depreciation, factory building ……………………….. 1,100,000

Depreciation, factory equipment ……………………… 630,000

Property taxes on the factory …………………………. 65,000

Utilities, factory ………………………………………. 150,000

Insurance on the factory ………………………………. 200,000

Research and development ……………………………. 120,000

Salary, sales supervisor ………………………………… 85,000

Commissions, salespersons ……………………………. 370,000

General administration ………………………………… 390,000

Work in process inventory, January 1 …………………. 450,000

Work in process inventory, December 31 ……………… 750,000

Finished goods inventory, January 1 …………………… 107,500

Finished goods inventory, December 31 ………………. 489,000

Required:

1. Prepare a cost of goods manufactured statement.

2. Compute the cost of producing one floor lamp last year.

3. Prepare an income statement on an absorption costing basis.