# ACC – Super Dmart Problem

Selected account balances for the year ended May 31, 20×1 are provided below for Super Dmart:Raw materials inventory, June 1, 20×0 \$ 40,000Raw materials inventory, May 31, 20×1 30,000Purchases of raw materials 150,000Insurance, factory 12,000Work in process, June 1, 20×0 ?Utilities, factory 25,000Indirect labour 60,000Finished goods inventory, June 1, 20×0 85,000Direct labour ?Indirect materials 30,000Work in process, May 31, 20×1 48,000Rent, factory building 120,000Finished goods inventory, May 31, 20×1 ?Maintenance, factory 16,000The goods available for sale for the year totaled \$635,000, the total manufacturing costs were \$563,000, and the cost of goods sold totaled \$560,000 for the year.Required:1. Prepare a schedule of cost goods manufactured in the form illustrated in Exhibit 2â9 in the textbook and a schedule of cost goods sold.2. Assume that the dollar amounts given above are for the equivalent of 40,000 units produced during the year. Calculate the unit cost for direct materials. Calculate the unit cost for rent on the factory building.3. Assume in 20×2 that the company produces 50,000 units. What would be the per unit and total cost that you would expect to be incurred for direct materials? For rent on the factory building?4. As the manager in charge of production costs, explain to the president the reason for any difference in unit costs between (2) and (3) above.