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An analysis of the accounts of Crane Company reveals the following manufacturing cost data for the month ended Septembe 30, 2020. Inventories Raw materials Work in process Finished goods Beginning $ 12,100 7,600 10,100 Ending $ 11,400 5,100 12,100 Costs incurred: raw materials purchases $ 62,600, direct labor $ 51,100, manufacturing overhead $ 26,250. The specific overhead costs were: indirect labor $ 6,600, factory insurance $ 5,100, machinery depreciation $ 6,100, machinery repairs $ 2,900, factory utilities $ 3,700, miscellaneous factory costs $ 1,850. Assume that all raw materials used were direct materials. Crane Company is considering the purchase of a new automated assembly line for its factory. The purchase would result in several changes in Crane' cost structure. Both direct labor and indirect labor would decrease by 40%. Factory insurance would increase to $ 8,100, machinery depreciation would double, machinery repairs would decrease to $ 510, utilities would decrease to $ 2,600 and miscellaneous factory costs would increase to $ 1,950. Materials usage would remain at current level hedul September 2020 using the new ata. Analyze the new purchase by preparing a cost of goods manufac Crane Co. Cost of Goods Manufacturing Schedule choose the accounting period For the Month Ended September 30, 2020For the Year Ended September 30, 2020Septembe

An analysis of the accounts of Crane Company reveals the following manufacturing cost data for the month ended Septembe 30, 2020. Inventories Raw materials Work in process Finished goods Beginning $ 12,100 7,600 10,100 Ending $ 11,400 5,100 12,100 Costs incurred: raw materials purchases $ 62,600, direct labor $ 51,100, manufacturing overhead $ 26,250. The specific overhead costs were: indirect labor $ 6,600, factory insurance $ 5,100, machinery depreciation $ 6,100, machinery repairs $ 2,900, factory utilities $ 3,700, miscellaneous factory costs $ 1,850. Assume that all raw materials used were direct materials. Crane Company is considering the purchase of a new automated assembly line for its factory. The purchase would result in several changes in Crane' cost structure. Both direct labor and indirect labor would decrease by 40%. Factory insurance would increase to $ 8,100, machinery depreciation would double, machinery repairs would decrease to $ 510, utilities would decrease to $ 2,600 and miscellaneous factory costs would increase to $ 1,950. Materials usage would remain at current level hedul September 2020 using the new ata. Analyze the new purchase by preparing a cost of goods manufac Crane Co. Cost of Goods Manufacturing Schedule choose the accounting period For the Month Ended September 30, 2020For the Year Ended September 30, 2020Septembe

Cornerstones of Cost Management (Cornerstones Series)
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 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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An analysis of the accounts of Crane Company reveals the following manufacturing cost data for the month ended September 30, 2020. Inventories Raw materials Work in process Finished goods Beginning $ 12,100 7,600 10,100 Ending $ 11,400 5,100 12,100 Costs incurred: raw materials purchases $ 62,600, direct labor $ 51,100, manufacturing overhead $ 26,250. The specific overhead costs were: indirect labor $ 6,600, factory insurance $ 5,100, machinery depreciation $ 6,100, machinery repairs $ 2,900, factory utilities $ 3,700, miscellaneous factory costs $ 1,850. Assume that all raw materials used were direct materials. Crane Company is considering the purchase of a new automated assembly line for its factory. The purchase would result in several changes in Crane' cost structure. Both direct labor and indirect labor would decrease by 40%. Factory insurance would increase to $ 8,100, machinery depreciation would double, machinery repairs would decrease to $ 510, utilities would decrease to $ 2,600 and miscellaneous factory costs would increase to $ 1,950. Materials usage would remain at current levels. Analyze the new purchase by preparing a cost of goods manufactured schedule for September 30, 2020 using the new data. Crane Co. Cost of Goods Manufacturing Schedule choose the accounting period For the Month Ended September 30, 2020For the Year Ended September 30, 2020September 30, 20
Transcribed Image Text:An analysis of the accounts of Crane Company reveals the following manufacturing cost data for the month ended September 30, 2020. Inventories Raw materials Work in process Finished goods Beginning $ 12,100 7,600 10,100 Ending $ 11,400 5,100 12,100 Costs incurred: raw materials purchases $ 62,600, direct labor $ 51,100, manufacturing overhead $ 26,250. The specific overhead costs were: indirect labor $ 6,600, factory insurance $ 5,100, machinery depreciation $ 6,100, machinery repairs $ 2,900, factory utilities $ 3,700, miscellaneous factory costs $ 1,850. Assume that all raw materials used were direct materials. Crane Company is considering the purchase of a new automated assembly line for its factory. The purchase would result in several changes in Crane' cost structure. Both direct labor and indirect labor would decrease by 40%. Factory insurance would increase to $ 8,100, machinery depreciation would double, machinery repairs would decrease to $ 510, utilities would decrease to $ 2,600 and miscellaneous factory costs would increase to $ 1,950. Materials usage would remain at current levels. Analyze the new purchase by preparing a cost of goods manufactured schedule for September 30, 2020 using the new data. Crane Co. Cost of Goods Manufacturing Schedule choose the accounting period For the Month Ended September 30, 2020For the Year Ended September 30, 2020September 30, 20
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