Freeman Furnishings has summarized its data as shown: Depreciation of factory building $116,000 Factory real estate taxes $15,000 Factory utility expenses $85,000 Indirect materials $32,000 Indirect labor $25,000 Direct labor cost $86,000 Direct labor hours incurred 25,500 Estimated direct labor hours 26,000 Raw material purchased $350,000 Raw material, beginning inventory $40,000 Raw material, ending inventory $29,000 Work in process, beginning inventory $53,000 Work in process, ending inventory $67,000 Estimated overhead $286,000 Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours.

Freeman Furnishings has summarized its data as shown: Depreciation of factory building $116,000 Factory real estate taxes $15,000 Factory utility expenses $85,000 Indirect materials $32,000 Indirect labor $25,000 Direct labor cost $86,000 Direct labor hours incurred 25,500 Estimated direct labor hours 26,000 Raw material purchased $350,000 Raw material, beginning inventory $40,000 Raw material, ending inventory $29,000 Work in process, beginning inventory $53,000 Work in process, ending inventory $67,000 Estimated overhead $286,000 Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours.

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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An examination of Buckhorn Fabricators records reveals the following transactions: a. On December 31, the physical inventory of raw material was 9,950 gallons. The book quantity, using the weighted average method, was 10,000 gal @ .52 per gal. b. Production returned to the storeroom materials that cost 775. c. Materials valued at 770 were charged to Factory Overhead (Repairs and Maintenance), but should have been charged to Work in Process. d. Defective material, purchased on account, was returned to the vendor. The material returned cost 234. e. Goods sold to a customer, on account, for 5,000 (cost 2,500) were returned because of a misunderstanding of the quantity ordered. The customer stated that the goods returned were in excess of the quantity needed. f. Materials requisitioned totaled 22,300, of which 2,100 represented supplies used. g. Materials purchased on account totaled 25,500. Freight on the materials purchased was 185. h. Direct materials returned to the storeroom amounted to 950. i. Scrap materials sent to the storeroom were valued at an estimated selling price of 685 and treated as a reduction in the cost of all jobs worked on during the period. j. Spoiled work sent to the storeroom valued at a sales price of 60 had production costs of 200 already charged to it. The cost of the spoilage is to be charged to the specific job worked on during the period. k. The scrap materials in (i) were sold for 685 cash. Required: Record the entries for each transaction.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
For each of the following independent situations, calculate the missing values: 1. The Belen plant purchased 78,300 of direct materials during June. Beginning direct materials inventory was 2,500, and direct materials used in production were 73,500. What is ending direct materials inventory? 2. Forster Company produced 14,000 units at an average cost of 5.90 each. The beginning inventory of finished goods was 3,422. (The average unit cost was 5.90.) Forster sold 14,120 units. How many units remain in ending finished goods inventory? 3. Beginning work in process (WIP) was 116,000, and ending WIP was 117,300. If total manufacturing costs were 349,000, what was the cost of goods manufactured? 4. If the conversion cost is 84 per unit, the prime cost is 55, and the manufacturing cost per unit is 105, what is the direct materials cost per unit? 5. Total manufacturing costs for August were 412,000. Prime cost was 64,000, and beginning WIP was 76,000. The cost of goods manufactured was 434,000. Calculate the cost of overhead for August and the cost of ending WIP.
Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)
Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)
Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-17 Refer to the information for Barnard Company on the previous page. The total period expense is a. 276,000. b. 200,000. c. 76,000. d. 40,000. e. 36,000.
Freeman Furnishings has summarized its data as shown: Depreciation of factory building $109,500 Factory real estate taxes $15,000 Factory utility expenses $85,000 Indirect materials $32,000 Indirect labor $25,000 Direct labor cost $84,000 Direct labor hours incurred 25,500 Estimated direct labor hours 26,000 Raw material purchased $330,000 Raw material, beginning inventory $30,000 Raw material, ending inventory $30,000 Work in process, beginning inventory $53,000 Work in process, ending inventory $68,000 Estimated overhead $279,500 Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours. $fill in the blank 1
Loring Company incurred the following costs last year:Direct materials $ 216,000Factory rent 24,000Direct labor 120,000Factory utilities 6,300Supervision in the factory 50,000Indirect labor in the factory 30,000Depreciation on factory equipment 9,000Sales commissions 27,000Sales salaries $ 65,000Advertising 37,000Depreciation on the headquartersbuilding 10,000Salary of the corporate receptionist 30,000Other administrative costs 175,000Salary of the factory receptionist 28,000Required:1. Classify each of the costs using the following table format. Be sure to total the amounts ineach 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 related data of Jean Grey Company: Direct materials P85,000 Depreciation on factory equipment 12,500 Factory janitor’s salary 12,000 Direct labor 67,800 Utilities for factory 12,500 Selling expenses 28,000 Production supervisor’s salary 20,000 Administrative expenses 35,700 Rent expense - Head office 12,800 Rent expense - Factory 20,000 Depreciation on office equipment 8,500…
Angela Company provided the following information for the current year: Purchases of raw materials 4,600,000 Indirect labor 720,000 Ending raw materials 680,000 Beginning goods in process 1,520,000 Depreciation on headquarters building 420,000 Factory supervisor's salary 1,120,000 Direct labor 3,960,000 Beginning raw materials 800,000 Depreciation on factory building 640,000 Ending goods in process 2,000,000 1. What amount should be reported as cost of goods manufactured for the current year?
A. Purchased P250,000 of materials. B. Used P180,000 of materials in production. C. Incurred P450,000 of direct labor wages. D. Incurred P190,000 of factory overhead. E. Transferred P760,000 of work in process to finished goods. F. Sold good P1,200,000. G. Sold goods with a cost of P675,000. H. Incurred P215,000 of selling expenses. I. Incurrent P125,000 of administrative expenses. Requirements: 1. Prepare income statement. 2. Prepare the inventory portion of the balance sheet.
Prepare an Income Statement for the ff data of EH Corporation: Selling Expenses 70,000.00 Raw Materials inventory, Beginning 45,000.00 Raw Materials inventory, end 30,000.00 Work in process beginning 90,000.00 Work in process end 50,000.00 Finished Goods beginning 130,000.00 Finished Goods end 105,000.00 Utilities factory 18,000.00 Direct labor cost 75,000.00 Depreciation, Factory 81,000.00 Purchases of raw materials 375,000.00 Sales 1,250,000.00 Insurance Factory 20,000.00 Supplies, Factory 7,500.00 Administrative expenses 135,000.00 Indirect labor 150,000.00 Maintenance, factory 43,500.00