Brock Company makes candy. During the most recent accounting period Brock paid $7,000 for raw materials, $8,000 for labor, and $10,000 for overhead costs that were incurred to make candy. Brock started and completed 23, 585 units of candy of which 16,000 were sold. Based on this information Brock would recognize which of the following amounts of expense on its income statement? a. $8000 b. $25000 c. S 16960 d. none of the above

Brock Company makes candy. During the most recent accounting period Brock paid $7,000 for raw materials, $8,000 for labor, and $10,000 for overhead costs that were incurred to make candy. Brock started and completed 23, 585 units of candy of which 16,000 were sold. Based on this information Brock would recognize which of the following amounts of expense on its income statement? a. $8000 b. $25000 c. S 16960 d. none of the above

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Brock Company makes candy. During the most recent accounting period Brock paid $4,750 for raw materials, $5,750 for labor, and $5,500 for overhead costs that were incurred to make candy. Brock started and completed 16,495 units of candy of which 11,500 were sold. Based on this information Brock would recognize which of the following amounts of expense on its income statement? (Do not round intermediate calculations.)
RM1. During the most recent accounting period Lucid paid $5,500 for raw materials, $8,500 for labor, and $10,000 for overhead costs that were incurred to make candy. Lucid started and completed 22,000 units of products of which 13,000 were sold. Based on this information Lucid would recognize which of the following amounts of expense on its income statement?
Record the following journal entries for Brown Company: A (Click the icon to view the transactions.) (Record debits first, then credits. Exclude explanations from any journal entries.) 6. Purchased raw materials on account, $8,000. Date Accounts Debit Credit 7. Used $4,000 in direct materials and 600 in indirect materials in production. Date Accounts Debit Credit 7. 000 bich 700/ Iabor 6.
Watson Print Supplies, Inc., sells laser printers and supplies. Assume Watson started the year with 90 containers of ink (average cost of $8.50 each, FIFO cost of $8.90 each, LIFO cost of $7.80 each). During the year, the company purchased 720 containers of ink at $10.30 and sold 580 units for $19.75 each. Watson paid operating expenses throughout the year, a total of $4,050. Ignore income taxes for this exercise. Prepare Watson's income statement for the current year ended December 31 using the average-cost, FIFO, and LIFO inventory costing methods. Include a complete statement heading. Complete the income statement by selecting the appropriate heading and income statement labels, and then calculating the amounts for each of the three required inventory methods. (Calculate unit costs to the nearest cent. Round all other calculations to the nearest whole dollar.) Sales revenue Cost of goods sold Gross profit Operating expenses Net income ▼ Watson Print Supplies, Inc. Income Statement…
2. A boat manufacturer produces 30 boats this year and incurred $3.6 million in material, labor, and overhead costs. 19 boats were sold during the year, and each boat was allocated the same amount of costs. a. How much of the $3.6 million of total manufacturing costs should appear on the Company's income statement as Costs of Goods Sold? b. Assuming Finished Goods Inventory consisted of only the unsold boats produced this year then what is the $ amount of Finished Goods Inventory?
2. A boat manufacturer produces 30 boats this year and incurred $3.6 million in material, labor, and overhead costs. 19 boats were sold during the year, and each boat was allocated the same amount of costs. a. How much of the $3.6 million of total manufacturing costs should appear on the Company's income statement as Costs of Goods Sold? b. Assuming Finished Goods Inventory consisted of only the unsold boats produced this year then what is the $ amount of Finished Goods Inventory? (Show all calculations)
ABC Ltd. incurred the following costs while manufacturing its product. Property taxes on store 7500 Advertising expense 45000 Delivery expense 21000 Sales commissions 35000 Salaries paid to sales clerks 50000 Sales revenue 445000 Sales Discount 15000 COGS 337900 Work in process inventory was 12000 at January 1 and 15500 at December 31. Finished goods inventory was 60000 at January 1 and 45600 at December 31. Compute gross profit.Single line text.
2. Prepare an Income statement. WALLACE RIVER COMPANY Income Statement For the Year Ended December 31 Cost of goods sold: Selling and administrative expenses: Direct materials Factory depreciation Cost Per Unit Direct materials Factory depreciation 3. Assume that the company produced 10,000 units of product during the year. What was the average cost per unit for direct materials? What was the average cost per unit for factory depreciation? (Round your answers to 2 decimal places.) 0 Cost Per Unit $ $ Total Cost 0 0 4. Assume that the company expects to produce and sell 15,000 units of product during the coming year. What average cost per unit and what total cost would you expect the company to incur for direct materials and for factory depreciation at this level of activity? Assume that raw materials costs charged by suppliers will not change next year. For factory depreciation, assume that the company uses straight-line depreciation and that the factory equipment has five years of…
The following transactions were taken from the books of Masayun La Eni Corporation during the month of June 2020: a. Purchased raw materials on account, P200,000 and factory supplies, P70,000. b. Issued raw materials to production, P400,000. c. Paid direct factory labor, P950,000. d. Paid indirect factory labor, P160,000. e. Consumed factory supplies in production, P80,000. f. Paid production supervisor’s salary, P60,000. g. Received factory utility bills for the month, P122,460. h. Depreciation of production assets for the month, P64,000. i. Units finished were 10,000 units in the amount of P1,600,000. j. Sales for the month, P3,600,000. Goods related to sales cost P1,800,000. Required: Manufacturing Accounts Beginning Balances Raw Materials Inventory P205,000 Work-in-Process Inventory P630,000 Finished Goods Inventory P360,000 Indirect Materials Inventory P100,000 Factory Overhead - 1. Post entries to T-accounts. 2. Prepare statement of Cost of Goods Manufactured in good form.…
3. Amy Company makes calculators. During the most recent accounting period, Amy paid $3,000 for raw materials, $5,000 for labor, and $2,000 for overhead costs that were incurred to make calculators. Amy started and completed 10,000 calculators, of which 6,000 were sold. Based on this information, how much expense would Amy recognize on the income statement?
The following transactions were taken from the books of Masayun La Eni Corporation during the month of June 2020: a.Purchased raw materials on account, P200,000 and factory supplies, P70,000. b. Issued raw materials to production, P400,000. c. Paid direct factory labor, P950,000. d. Paid indirect factory labor, P160,000. e. Consumed factory supplies in production, P80,000. f. Paid production supervisor’s salary, P60,000. g. Received factory utility bills for the month, P122,460. h. Depreciation of production assets for the month, P64,000. i. Units finished were 10,000 units in the amount of P1,600,000. j. Sales for the month, P3,600,000. Goods related to sales cost P1,800,000. Required: 1. Establish T-accounts for the following manufacturing accounts and post corresponding beginning balances. Manufacturing Accounts Beginning Balances Raw Materials Inventory - P205,000 Work-in-Process Inventory - P630,000 Finished Goods Inventory - P360,000 Indirect Materials Inventory -…
Whipple Company has sales revenue of $585,000. Cost of goods sold before adjustment is $335,000. The company uses machine hours to allocate manufacturing overhead and estimated 10,450 machine hours would be used during the year. For the year, manufacturing overhead was under-allocated by $13,400. The company's actual manufacturing overhead is $91,000. What is the actual gross profit? Select one: a. $250,000 b. $159,000 c. $236,600 d. $104,400 e. $263,400