The following costs and revenue pertain to the Swiss Chocolate Manufacturing Company, a U.S....

Question

The following costs and revenue pertain to the Swiss Chocolate Manufacturing Company, a U.S. producer of chocolate bars, for July 2015.

Swiss Chocolate Manufacturing Company	Jun-15	Jul-15
Raw materials inventory	$ 77,000	$ 91,000
Work-in-process inventory	$ 73,500	$ 70,000
Finished goods inventory	$ 63,000	$ 80,500
Purchases of raw materials	$ 262,500
Direct manufacturing labor	$ 87,500
Indirect manufacturing labor	$ 52,500
Factory insurance	$ 31,500
Depreciation — machinery and factory	$ 38,500
Repairs and maintenance — factory	$ 14,000
Selling, marketing and distribution expenses	$ 40,000
General and administrative expenses	$ 60,000
Revenues	$ 1,050,000

Requirements:

Complete the cost of goods manufactured statement for Swiss Chocolate for July 2015.
Complete the income statement for Swiss Chocolate (assume that the company incurs no interest financing costs and has a tax rate of 30%).
Compute Swiss Chocolate’s gross profit margin and net profit margin for July 2015. Recall that the gross profit margin percentage = gross profit margin/revenue, and net profit margin = net profit margin/revenue.
Swiss Chocolate’s closest publicly held competitor has a gross margin percentage of 50% and a net profit margin of 15%. Compare Swiss Chocolate’s performance for July 2015 to that of its competitor. What do you note regarding relative production cost and relative period costs in this comparison? Which company appeared to have performed better? Explain your answer.

Your paper should meet the following requirements:

3-4 pages in length including calculations
Format according to the CSU-Global Guide to Writing and APA Requirements
Include at least three outside sources

David · Accepted Answer

Order id: PPa160315_221025_2
Swiss Chocolate Manufacturing Company 
 Cost of Goods Manufactured and Sold statement 

Jul-15
     Cost of Goods Manufactured 
  Direct Materials 
   Opening  
  
77000 
 Add: Purchases 
 
262500 
 Less: Closing 
 
-91000 248500 
Direct Labor 
  
87500 
Manufacturing Overhead 
  Depreciation 
 
38500 
 Indirect labor 
 
52500 
 Factory Insurance 
 
31500 
 Repairs and maintenance — 
factory 14000 136500 
Total 
   
472500 
Add: Opening WIP 
  
73500 
Less: Closing WIP 
  
-70000 
Cost of Goods Manufactured 
 
476000 
Add: Opening Finished goods inventory 63000 
Less: Closing Finished goods inventory -80500 
Cost of Goods Sold 
  
458500
Swiss Chocolate Manufacturing Company 
 Income Statement for the period ended  

Jul-15
     Sales Revenue 
  
1050000 
Less: Cost of Goods Sold 
 
-458500 
Gross Margin 
  
591500 
Less: Selling, marketing and distribution 
expenses -40000 
Less:  General and administrative expenses -60000 
Profit Before Tax 
  
491500 
Less: Tax @ 30% 
  
147450 
Net Income 
  
344050
Swiss Chocolate Manufacturing 
Company
Jul-15 
Gross Profit Margin 
Percentage 56.33% 
    Net Profit Margin 
Percentage 32.

The following costs and revenue pertain to the Swiss Chocolate Manufacturing Company, a U.S. producer of chocolate bars, for July 2015. Swiss Chocolate Manufacturing Company Jun-15 Jul-15 Raw...

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