Steel

Steel Company USA is a metal fabricating business that sells products mainly to the home construction market. The data table that follows should be used in this assignment. The problems are at the end of the data table._x000D_
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Inputs_x000D_
_x000D_
Costs_x000D_
_x000D_
Sandpaper_x000D_
_x000D_
$4,000_x000D_
_x000D_
Materials – handling costs_x000D_
_x000D_
$140,000_x000D_
_x000D_
Lubricants and coolants_x000D_
_x000D_
$10,000_x000D_
_x000D_
Misc indirect labor_x000D_
_x000D_
$80,000_x000D_
_x000D_
Misc direct labor_x000D_
_x000D_
$600,000_x000D_
_x000D_
Direct materials inv Jan 1, 2010_x000D_
_x000D_
$80,000_x000D_
_x000D_
Direct materials inv Dec 31, 2010_x000D_
_x000D_
$100,000_x000D_
_x000D_
Finished goods inv, Jan 1, 2010_x000D_
_x000D_
$200,000_x000D_
_x000D_
Finished goods inv, Dec 31, 2010_x000D_
_x000D_
$300,000_x000D_
_x000D_
WIP Jan 1, 2010_x000D_
_x000D_
$20,000_x000D_
_x000D_
WIP Dec 31, 2010_x000D_
_x000D_
$28,000_x000D_
_x000D_
Plant lease costs_x000D_
_x000D_
$108,000_x000D_
_x000D_
Depreciation – PPE_x000D_
_x000D_
$72,000_x000D_
_x000D_
Property taxes_x000D_
_x000D_
$8,000_x000D_
_x000D_
Insurance_x000D_
_x000D_
$6,000_x000D_
_x000D_
Direct materials purchased_x000D_
_x000D_
$920,000_x000D_
_x000D_
Revenues_x000D_
_x000D_
$2,720,000_x000D_
_x000D_
Marketing Promo_x000D_
_x000D_
$120,000_x000D_
_x000D_
Marketing Salaries_x000D_
_x000D_
$200,000_x000D_
_x000D_
Distribution costs_x000D_
_x000D_
$140,000_x000D_
_x000D_
Customer service costs_x000D_
_x000D_
$200,000_x000D_
_x000D_
Using the information in the table, create an income statement with a schedule for costs of goods manufactured. Make sure that for the costs you classify if they are direct or indirect and indicate if they are variable or fixed._x000D_
Let’s assume that both direct material costs and plant leasing costs are for the production of 1,800,000 units. What would be the direct material cost of each of these units produced? Plant leasing cost per unit? Plant leasing should be a fixed cost here._x000D_
Now let’s assume we build 2,000,000 units next year. Repeat the calculations in item #2 above for direct materials and plant leasing costs._x000D_
Explain why the unit costs for direct materials didn’t change in numbers 2 and 3, but the unit costs for the plant lease did._x000D_
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Accounting homework help_x000D_
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