1. Marulacturlng costs. A schedule of cosl .of goods manuiuciurou SIVNS,$300,000800,000640,000140,000Matotlals used.Direct labor........... *"Ovorhead costs.. .Work In procese, ondirig Inventory.........: ....Flequlred:(1) Calculate the rate of faclory overhead to direct labor cost.(2) Deterrmine the cost of direct materlals lncluded In the work in process ending.Inventory, assuming that the diréct labor cost Included in the mventory of work inprocess is $50,000.·

Overhead allocation rate is the rate used to charge the overhead cost of production to the product…

1. Manulactiurlng costs. A chedule of cost .of goodis Imanuluciurou SIRIYS, Matorlals used. Direct labor.... Ovorhead costs... Work In process, onding Inventory. $300,000 800,000 640,000 140,000 ' ... Nequlred: (1) Calculate the rate of factory overhead to direct labor cosl. (2) Determine the cost of direct materlals Included In the work in process ending. Inventory, assuming that the direct labor cost Included in tho mventory of work in process is $50,000.·

1. Manulactiurlng costs. A chedule of cost .of goodis Imanuluciurou SIRIYS, Matorlals used. Direct labor.... Ovorhead costs... Work In process, onding Inventory. $300,000 800,000 640,000 140,000 ' ... Nequlred: (1) Calculate the rate of factory overhead to direct labor cosl. (2) Determine the cost of direct materlals Included In the work in process ending. Inventory, assuming that the direct labor cost Included in tho mventory of work in process is $50,000.·

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cost of goods manufactured, cost of goods sold, and income statementGrandSlam, Inc., incurred the following costs during March:Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,340Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,752Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,135Manufacturing overhead, actual. . . . . . . . . . . . . . . . . . . . . . . . 32,760Raw materials used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,464Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,675 Required:During the month, 2,600 units of product were manufactured and 1,450 units of product were sold. On March 1, GrandSlam, Inc., carried no inventories. On March 31, there were no inventories for raw materials or work in process.a. Calculate the cost of goods manufactured during March and the average cost per unit of…
Q-1: The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed: (5-Marks) Sales ..................................................$555,000 Costs incurred: Direct labor cost ..............................$66,000 Purchases of raw materials............ $118,000 Manufacturing overhead................ $70,000 Advertising expense........................ $90,000 Sales salaries.................................... $55,000 Depreciation, office equipment......$3,000 Date: ............................1/1/2020 to 31/12/2020 Inventories: Raw materials ......$8,000 ............$26,000 Work in process ...$15,000.......... $12,000 Finished goods .....$21,000......... $35,000 Calculate then report the number only: Step-1: calculate the Cost of goods Manufactured : ............. Step- 2: Calculate the Cost of good available for sale: ........... Step-3: Calculate the Gross Margin (income before non manufacturing overhead) :…
The EG Company produces and sells one product. The following data refer to the year just completed:Units in beginning inventory ..........................0Units produced................................................8,900Units sold........................................................8,500Units in ending inventory ...............................400Variable costs per unit:Direct materials ...........................................$26Direct labor..................................................$25Variable manufacturing overhead ...............$4Variable selling and administrative expense.................................................................$4Fixed costs:Fixed manufacturing overhead ....................$249,200Fixed selling and administrative expense....$17,000Sales Price is $100 per unit.Required:Clearly label and show your work!!!a. Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.b. Prepare an income…
Papa Ground Factory provided the following information for the last calender year: Beginning inventory Direct materials........................................................................................... K60,000 Work in process........................................................................................... K75,000 Ending inventories Direct Materials ...........................................................................................K45,000 Work in process ...........................................................................................K20,000 During the year, direct materials purchased amounted to K200,000, directed labour cost was K200,000 and overhead cost was K400,500. There were 100,000 units produced Required: 1. Calculate the…
Precious Products Ltd.Income StatementFor the year ended xxxxSales.................................................................... $______Cost of goods sold:Finished goods inventory, beginning.................... $ ______Add: Cost of goods manufactured ....................... ______Goods available for sale...................................... ______Deduct: Finished goods inventory, ending............ ______ ______Gross margin........................................................ ______Selling and administrative expenses:Selling expenses................................................. ______Administrative expenses ..................................... ______ ______Operating income ................................................. $ , .3. Direct labour: $______÷ 10,000 units = $______per unit.Insurance: $______÷ 10,000 units = $______per unit.4. Direct materials:Unit cost: $: $______÷ 10,000 units = $______per unit.Total cost: ______units × $______ per unit =…
Precious Products LtdSchedule of Cost of Goods ManufacturedFor the year ended xxxxDirect materials:Raw materials inventory, beginning................ $ ______Add: Purchases of raw materials .................... ______Raw materials available for use ...................... ______Deduct: Raw materials inventory, ending........ ______Raw materials used in production................... $ ______Direct labour.................................................... ______Manufacturing overhead:Depreciation, factory ..................................... ______Insurance, factory ......................................... ______Maintenance, factory ..................................... ______Utilities, factory............................................. ______Supplies, factory ........................................... ______Indirect labour .............................................. ______Total overhead costs........................................ ______Total manufacturing costs…
Cost of goods manufactured, cost of goods sold, and income statementRichards, Inc., incurred the following costs during May:Raw materials used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 662,000Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,304,000Manufacturing overhead, actual. . . . . . . . . . . . . . . . . . . . . 896,000Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534,000Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 388,000Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182,000Required:During the month, 59,625 units of product were manufactured and 54,000 units of product were sold. On May 1, Richards, Inc., carried no inventories. On May 31, there were no inventories other than finished goods.a. Calculate the cost of goods manufactured during May and the average cost per unit of product manufactured.b. Calculate the cost of…
Ozone Products provided the following information for 2004:Materials:Materials inventory, January 1........................ $ 75,000Purchases......................................................... 526,000Direct materials issued .................................... 525,000Indirect materials issued.................................. 27,000Labor:Direct labor cost (22,000 hours)..................... $150,000Indirect labor................................................... 35,000Other factory costs:Depreciation.................................................... $175,000Maintenance .................................................... 85,000Supervision...................................................... 46,000Planning and control ....................................... 44,000Miscellaneous.................................................. 12,000Work in process:Beginning inventory........................................ $ 25,000Ending inventory.............................................…
Fire fax manufacturing company has the following information in relation to commodity D2 for July: Inventory July 1………………………............. 20units at hr. 50 Sales July 7 …………………………..10units July 18 ………………………… 5units July 27...............................10 units Purchases July 3…………………………………20 units at br. 51 July 20 ………………………………15 units at br. 52 Required: A. If Fire fax company used a perpetual inventory system & LIFO costing method. Determine the cost of goods sold &ending inventory. B. If the company used a periodic inventory system and FIFO costing method. Determine cost of goods sold & ending inventory
Tom Petty Co. produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price…………………………………. $260 100.00% Variable Expenses……………………….. $ 94 36.15% Contribution margin……………………. $166 63.85% Fixed expenses are $620,000 per month. The company is currently selling 5,000 units per month. The marketing manager would like to cut the selling price by $20 and increase the advertising budget by $60,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 800 units. What should be the overall effect on the company's monthly net operating income of this change? Should Tom Petty Co implement the marketing manager’s proposal? Show your work.
6.Disposition of Over- or Underapplied Overhead. The following information is available concerning theinventory and cost of goods sold accounts of PGA Company at the end of the most recent year:Work in Finished Cost of GoodsProcess Goods SoldDirect material .............................................................................. $ 5,000 $ 8,000 $ 11,000Direct labor ................................................................................... 6,000 15,000 15,000Applied overhead ......................................................................... 4,000 12,000 24,000Year-end balance.......................................................................... $ 15,000 $ 35,000 $ 50,000Applied overhead has already been closed to Factory Overhead Control.Required:Give the journal entry required to close Factory Overhead Control, assuming:(1) Overapplied overhead of $10,000 is to be allocated to inventories and Cost of Goods Sold in proportionto the balances in those…
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price........................................................... $78Units in beginning inventory................................. 0Units produced ...................................................... 5,300Units sold............................................................... 4,900Units in ending inventory...................................... 400Variable costs per unit:Direct materials.................................................. $31Direct labor......................................................... $14Variable manufacturing overhead ...................... $2Variable selling and administrative.................... $5Fixed costs:Fixed manufacturing overhead........................... $68,900Fixed selling and administrative ........................ $58,800 What is the total period cost for the month under the absorption costing approach?