Costs Direct materials Factory rent Direct labor Factory utilities Supervision in the factory Indirect labor in the factory Depreciation on factory equipment Sales commissions Sales salaries Advertising Depreciation on the headquarters building Salary of the corporate receptionist Other administrative costs Salary of the factory receptionist Amounts $212,000 22,000 122,000 6,900 55,000 28,000 6,900 29,000 65,000 34,000 10,800 25,000 166,000 27,000

Costs Direct materials Factory rent Direct labor Factory utilities Supervision in the factory Indirect labor in the factory Depreciation on factory equipment Sales commissions Sales salaries Advertising Depreciation on the headquarters building Salary of the corporate receptionist Other administrative costs Salary of the factory receptionist Amounts $212,000 22,000 122,000 6,900 55,000 28,000 6,900 29,000 65,000 34,000 10,800 25,000 166,000 27,000

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 8P: Journalizing the distribution of service department costs to production departments Required: Using...

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Direct Direct Manufacti Cost Item Materials Labor Overhe Rent on factory equipment Insurance on factory building Raw materials Utility costs for factory Supplies for general office Wages for assembly line workers Depreciation on office equipment Miscellaneous materials Factory manager'ssalary Property taxes on factory building Advertising for helmets Sales commissions Depreciation on factory building
Direct materials used in production Direct labor Total actual manufacturing overhead costs Over-applied Manufacturing overhead Beginning Work in Process inventory Cost of Goods Manufactured Decrease in Finished Goods Inventory Compute the Cost of Work put into process. P 500,000 400,000 300,000 24,000 120,000 1,400,000 100,000
Verrett Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Raw materials purchased on account Raw materials (all direct) requisitioned for use in production Direct labor cost Manufacturing overhead: Indirect labor cost Other manufacturing overhead costs incurred Cost of goods manufactured Cost of goods sold (unadjusted) What is the journal entry to record the direct and indirect labor costs incurred during the year? $475,000 $ 476,000 $ 640,000 $ 174,000 $ 498,000 $1,469,000 $1,430,000
Classify each of the following items of factory overhead as either a fixed or a variable cost. (Include any costs that you consider to be semivariable within the variable category. Remember that variable costs change in total as the volume of production changes.) Indirect labor Indirect materials Insurance on building Overtime premium pay Depreciation of building (straight-line method) Polishing compounds Depreciation of machinery (units-of-production method) Employer’s payroll taxes Property taxes Machine lubricants Employees’ hospital insurance (paid by employer) Labor for machine repairs Vacation pay Janitor’s wages Rent Small tools Plant manager’s salary Factory electricity Product inspector’s wages
Journalizing the distribution of service department costs to production departments Required: Using your solution to P4-7, prepare journal entries for the following: The distribution of the total factory overhead of $79,400 to the individual production and service departments where it originated. The distribution of the Building Maintenance overhead to the appropriate other departments. The distribution of the Factory Office overhead to the appropriate other departments.
Activity-based department rate product costing and product cost distortions Big Sound Inc. manufactures two products: receivers and loudspeakers. The factory overhead incurred is as follows: The activity base associated with the two production departments is direct labor hours. The indirect labor can be assigned to two different activities as follows: The activity-base usage quantities and units produced for the two products follow: Instructions Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the production departments, so that the total factory overhead is 420,000 and 294,000 for the Subassembly and Final Assembly departments, respectively. Determine the total and per-unit factory overhead costs allocated to each product, using the multiple production department overhead rates in (1). Determine the activity rates, assuming that the indirect labor is associated with activities rather than with the production departments. Determine the total and per-unit cost assigned to each product under activity-based costing. Explain the difference in the per-unit overhead allocated to each product under the multiple production department factory overhead rate and activity-based costing methods. production department factory overhead rate and activity-based costing methods.
Salary paid to workers of inspection and maintenance departments are treated as ____ by a manufacturing firm A. Direct Labour B. Indirect labour charged to manufacturing Overhead C. Selling, General and administrative cost, charged as Period cost D. Other staff expenses charged as Period cost
Classifying costsThe following is a list of costs incurred by several businesses:a. Salary of quality control supervisor b. Packing supplies for products sold. These supplies are a verysmall portion of the total cost of the product.c. Factory operating suppliesd. Depreciation of factory equipmente. Hourly wages of warehouse laborers f. Wages of company controller's secretaryg. Maintenance and repair costs for factory equipmenth. Paper used by commercial printeri. Entertainment expenses for sales representativesj. Protective glasses for factory machine operators k. Sales commissionsl. Cost of hogs for meat processorm. Cost of telephone operators for a toll-free hotline to helpcustomers operate productsn. Hard drives for a microcomputer manufacturer o. Lumber used by furniture manufacturerp. Wages of a machine operator on the production lineq. First-aid supplies for factory workersr. Tires for an automobile manufacturers. Paper used by Computer Department in processing variousmanagerial…
View Policies Current Attempt in Progress Manufacturing cost data for Marin Company are presented as follows. Determine the missing amount for each letter (a) through (i). Direct materials used Direct labor Manufacturing overhead Total manufacturing costs Work in process 1/1/22 Total cost of work in process Work in process 12/31/22 Cost of goods manufactured Save for Later Case A 72,000 58,800 250,100 282,800 237,020 (a) (b) (c) Case B $88,300 109,600 103,700 85,200 13,600 (d) (e) (f) Case C Attempts: 0 of 7 used $166,400 129,600 323,000 430,400 89,600 (g) (h) (i) Submit Answer
Problem 1: The following selected information is provided about a manufacturing company: Raw material purchases Direct labor Overhead applied Actual overhead Selling and administrative salaries Other selling and administrative expenses Sales revenue Inventory data: Raw material Work in process Finished goods 800,000 415,000 730,000 745,000 500,000 185,000 5,000,000 January 1 75,000 105,000 120,000 December 31 100,000 140,000 125,000 Calculate the cost of goods sold. Assume that under/over applied overhead is closed directly to cost of goods sold.
Which one of the following represents a period cost? Fringe benefits associated with factory workers Labor costs associated with quality control Overhead allocated to the manufacturing operations The VP of Sales' salary and benefi
Saved Help Sav CH 07 i Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system cont following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Activity Rates $6 per direct labor-hour $ 4 per machine-hour $ 50 per setup $ 90 per order $ 14 per shipment $ 840 per product Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity K425 M67 Number of units produced per year Direct labor-hours 200 2,000 80 500 Machine-hours Machine setups Production orders 100 1,500 1 4 4 Shipments Product sustaining 1 10 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? DELL F3 prt sc home end F4 F5 F6