Roundhead Corporation’s 2021 manufacturing costs were as follows: Prime costs P 4,000,000 Depreciation of factory equipment 600,000 Depreciation of factory building 400,000 Salaries of janitor assigned in factory premises 120,000 Salesmen’s commission based on sales 200,000 Depreciation for delivery van 150,000 How much of these costs should be considered product / manufacturing costs or inventoried for external reporting purposes? Group of answer choices P 5,470,000 P 5,120,000 P 4,120,000 P 4,000,000

Roundhead Corporation’s 2021 manufacturing costs were as follows: Prime costs P 4,000,000 Depreciation of factory equipment 600,000 Depreciation of factory building 400,000 Salaries of janitor assigned in factory premises 120,000 Salesmen’s commission based on sales 200,000 Depreciation for delivery van 150,000 How much of these costs should be considered product / manufacturing costs or inventoried for external reporting purposes? Group of answer choices P 5,470,000 P 5,120,000 P 4,120,000 P 4,000,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?
The Multicolors Company had the following costs for 2021: Raw materials P 2,1000,000 Direct labor 300,000 Miscellaneous FOH (fixed) 240,000 Depreciation of machines 120,000 Rent for factory building 150,000 Rent for sales office 90,000 Depreciation on store equipment 60,000 How much of these costs should be considered product or manufacturing costs to be inventoried under absorption costing? Group of answer choices P 3,060,000 P 3,000,000 P 2,910,000 P 2,790,000
The Multicolors Company had the following costs for 2021: Raw materials P 2,100,000 Direct labor 300,000 Miscellaneous FOH (fixed) 240,000 Depreciation of machines 120,000 Rent for factory building 150,000 Rent for sales office 90,000 Depreciation on store equipment 60,000 How much of these costs should be considered product/manufacturing costs to be inventoried under variable Costing? Group of answer choices P 2,550,000 P 2,490,000 P 2,400,000 P 2,280,000
6. The following cost relate to XYZ Corp for the year:Sales commission expenses P 185,000Direct materials 215,000Conversion cost 435,000Factory overhead 190,000 (40% of which is fixed)What is the TOTAL MANUFACTURING (PRODUCT) COSTS?
Using the data below, what is the total for fixed costs? Administrative salaries S75,000 Depreciation on production equipment 83,000 Manufacturing direct labor 81,000 Manufacturing direct materials 225,000 Advertising 54,000 Lease on headquarters' building 72,000 Indirect labor ** 29,000 Depreciation on sales equipment 37,000 Sales commissions 44,000 Production manager's salary 199,000 Indirect labor ** is a variable cost Total $899,000 $520,000 $483,000 O $557,000 O $491,000
A.Prepare Statement of Income and Expenses with a marginal contribution approach. Empresas La Torre presents the following information for the year ended December 31, 2020: Product Costs: Direct materials (Variables) $ 50.00 per unit Direct Labor (Variable) $ 20.00 per hour Variable Indirect Costs $ 10.00 per hour Total Fixed Indirect Costs $ 250,000 Period Expenses Seller Commissions $ 20.00 per unit Variable Administrative Expenses $ 30.00 per unit Total Fixed Administrative Expenses $ 150,000 The company sells solar batteries at $ 200.00 per unit. Making each battery takes 2 hours of direct labor. The company taxes its income at 40%. If the Company sells 10,000 units, prepare a statement of income and expenses using the marginal contribution approach.
produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Direct materials Direct labor Manufacturing overhead First $ 240,000 128,000 300,000 $ 668,000 Required 1 Required 2 80,000 $8.35 Complete this question by entering your answers in the tabs below. Quarter Total manufacturing costs (a) Number of units to be produced (b) Estimated unit product cost (a) = (b) Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product Second $ 120,000 64,000 220,000 Required 3 Required 4 Third $ 60,000 32,000 180,000 $ 272,000 $ 404,000 40,000 $10.10 20,000 $13.60 Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $2.00, what must be the…
1. Vera Santos Corporation's manufacturing costs were as follows: Prime Costs P560,000 Variable manufacturing overhead costs P80,000 Straight-line depreciation of factory building and equipment P60,000 Factory supervisor's salary (8,000 per month) P96,000 Other fixed factory overhead P40,000 What amount should be considered product cost for external reporting purposes?
ABC Company has the following data at the end of its fiscal year: Prime costs P 1,600,000 Variable manufacturing overhead 200,000 Fixed manufacturing overhead 320,000 Variable selling and other expenses 160,000 Fixed selling and other expenses 80,000 If ABC Company uses absorption costing, the product /manufacturing costs or inventoriable costs of the finished goods for the fiscal year would be? Group of answer choices P 1,600,000 P 1,800,000 P 1,960,000 P 2,120,000
Find the Prime Cost, conversion Cost, Cost of production, total cost, and profit from the following: Direct Materials Rs.20000;Direct Labor Rs. 10000; Factory Expenses Rs. 7000;Administration Expenses Rs. 5000; Selling Expenses Rs. 7000 and Sales Rs.60,000.
The following costs relate to Antonio Industries for the last quarter: Conversion cost Direct materials Manufacturing overhead Selling and administrative expense P 435,000 215,000 190,000 185,000 1. What is Antonio's prime cost for last quarter? a. P460,000 b. P410,000 c. P405,000 d. P 375,000 2. Antonio's total manufacturing cost is a. P460,000 b. P 645,000 . P 650,000 d. P 840,000