Francis manufacturers, a manufacturer of wood doors and windows, has prepared the following list of accounts Advertising Assemblers wages Production supervisor's salary Depreciation of machinery Factory utilities Lathe machine (machine for shaping wood) Operators wages Machinery repairs Office salaries Purchase of glue Purchase of screws and nails $36,000 84,200 21,400 9,200 55,600 66,400 22,600 113,800 1,600 800 Purchase of pine Purchase of oak 99,000 250,000 There is no beginning or ending inventory. Calculate the following: (а) (b) (c) Direct material used Direct labour cost (d) (e) (f) Prime cost Conversion cost Production cost Factory overhead

Francis manufacturers, a manufacturer of wood doors and windows, has prepared the following list of accounts Advertising Assemblers wages Production supervisor's salary Depreciation of machinery Factory utilities Lathe machine (machine for shaping wood) Operators wages Machinery repairs Office salaries Purchase of glue Purchase of screws and nails $36,000 84,200 21,400 9,200 55,600 66,400 22,600 113,800 1,600 800 Purchase of pine Purchase of oak 99,000 250,000 There is no beginning or ending inventory. Calculate the following: (а) (b) (c) Direct material used Direct labour cost (d) (e) (f) Prime cost Conversion cost Production cost Factory overhead

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 4E: For apparel manufacturer Abercrombie Fitch, Inc. (ANF), classify each of the following costs as...

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For apparel manufacturer Abercrombie Fitch, Inc. (ANF), classify each of the following costs as either a product cost or a period cost: a. Advertising expenses b. Chief financial officers salary c. Depreciation on office equipment d. Depreciation on sewing machines e. Fabric used during production f. Factory janitorial supplies g. Factory supervisors salaries h. Property taxes on factory building and equipment i. Oil used to lubricate sewing machines j. Repairs and maintenance costs for sewing machines k. Research and development costs l. Sales commissions m. Salaries of distribution center personnel n. Salaries of production quality control supervisors o. Travel costs of media relations employees p. Utility costs for office building q. Wages of sewing machine operators
Francis manufacturers, a manufacturer of wood doors and windows, has prepared thefollowing list of accountsAdvertisingAssemblers wagesProduction supervisor’s salaryDepreciation of machineryFactory utilitiesLathe machine (machine for shaping wood) Operators wagesMachinery repairsOffice salariesPurchase of gluePurchase of screws and nailsPurchase of pinePurchase of oak$36,00084,20021,4009,20055,60066,40022,600113,8001,60080099,000250,000There is no beginning or ending inventory. Calculate the following:(D) Prime cost(E) Conversion cost(f) Production cost
Specter Company, a small manufacturer, has submitted the items below concerning last year'soperations. The president's secretary, trying to be helpful, has alphabetized the list.Administrative salaries $2,400Advertising expense 1,200Depreciation—factory building 800Depreciation—factory equipment 1,600Depreciation—office equipment 180Direct labour cost 21,900Raw materials inventory, beginning 2,100Raw materials inventory, ending 3,200Finished goods inventory, beginning 46,980Finished goods inventory, ending 44,410General liability insurance expense 240Indirect labour cost 11,800Insurance on factory 1,400Purchases of raw materials 14,600Repairs and maintenance of factory 900Sales salaries 2,000Taxes on factory 450Travel and entertainment expense 1,410Work in process inventory, beginning 1,670Work in process inventory, ending 1,110Required:a. Prepare a schedule of Cost of Goods Manufactured in good form for the year. UseDecember and current year for time period. b. Determine the Cost of…
Comvita management have provided you with the following data for the year ended in 31st December 2018. Amounts in $ Work in Process - Jan 1, 2018 8100 Selling and Administrative Salaries 13800 Insurance on factory and equipment 3600 Work in Process - December 31, 2018 8300 Finished goods inventory, Jan 1, 2018 14000 Indirect material used 4900 Depreciation on factory equipment 2100 Raw material inventory, Jan 1 2018 10100 Property taxes for factory 2400 Finished goods inventory, 31 December 2018 15400 Purchase of raw material 39000 Electricity for factory 6000 Electricity for sales and administrative offices 2500 Other selling and administrative expenses 4000 Indirect labour cost incurred 29000 Depreciation on factory building 3800 Depreciation on cars used by sales personnel 1200 Direct labour cost incurred 79000 Raw material inventory, Dec 31, 2018 11000…
Aelan Products Company, a small manufacturer, has submitted the items below concerning last year's operations. The president's secretary, trying to be helpful, has alphabetized the list. Administrative salaries $4,800 Advertising expense 2,400 Depreciation—factory building 1,600 Depreciation—factory equipment 3,200 Depreciation—office equipment 360 Direct labour cost 43,800 Raw materials inventory, beginning 4,200 Raw materials inventory, ending 6,400 Finished goods inventory, beginning 93,960 Finished goods inventory, ending 88,820 General liability insurance expense 480 Indirect labour cost 23,600 Insurance on factory 2,800 Purchases of raw materials 29,200 Repairs and maintenance of factory 1,800 Sales salaries 4,000 Taxes on factory 900 Travel and entertainment expense 2,820 Work in process inventory, beginning 3,340 Work in process inventory, ending 2,220…
Doofenshmirtz Inc. incurs the following costs: $760 for factory workers salaries$690 for direct materials$1270 for commissions$270 for factory supervisor salaries$1050 for depreciation on office equipment at the CEO headquarters$110 for paying a factory accountant$80 for indirect materials. What is the total period cost?
Classify each of the following costs as manufacturing or non manufacturing: 1. Factory rental 2. Interest on bank overdraft 3. Depreciation on warehouse equipment 4. Salary and bonus for the chief accountant 5. Wages of security guards in factory 6. Advertising 7. Property taxes on corporate headquarters building 8. Gas and electricity for the factory 9. Carriage on purchase of raw materials 10. Operators of product help lines for customers
Francis manufacturers, a manufacturer of wood doors and windows, have prepared the following list of accounts. Advertising $36,000 Assemblers wages 84,200 Production supervisor’s salary 21,400 Depreciation of machinery 9,200 Factory utilities 55,600 Lathe machine (machine for shaping wood) Operators wages 66,400 Machinery repairs 22,600 Office salaries 113,800 Purchase of glue 1,600 Purchase of screws and nails 800 Purchase of pine 99,000 Purchase of oak 250,000 There is no beginning or ending inventory. Calculate the following: (a) Direct material used (b) Direct labor cost (c) Factory overhead (d) Prime cost (e) Conversion cost (f) Production cost 2. Compute cost of goods manufactured and cost of goods sold from the following amounts, using the equation method. Beginning of Year End of Year Direct materials inventory…
Francis manufacturers, a manufacturer of wood doors and windows, has prepared the following list of accounts Advertising $36,000 Assemblers’ wages 84,200 Production supervisor’s salary 21,400 Depreciation of machinery 9,200 Factory utilities 55,600 Lathe machine (machine for shaping wood) Operators wages 66,400 Machinery repairs 22,600 Office salaries 113,800 Purchase of glue 1,600 Purchase of screws and nails 800 Purchase of pine 99,000 Purchase of oak 250,000 There is no beginning or ending inventory. Calculate the following: (b) Direct labour cost (d) Prime cost (f) Production cost
Octie Company reports the following costs and expenses in January 2020. Required: From the information given, determine the total amount of Manufacturing overhead Product costs Period costs Advertising P 15,000 Factory utilities P 10,800 Depreciation-Factory Equipment 14,500 Indirect labor 55,200 Depreciation-Delivery Truck 10,800 Office supplies used 11,100 Direct labor 82,100 Property taxes-Factory 5,500 Direct materials used 135,600 Repairs-Office Equipment 4,200 Factory manager’s salary 25,000 Sales commissions 32,000 Factory repairs 13,500 Sales salaries 73,400
Classify the following costs of this new product as direct materials, direct labor, manufacturing overhead, selling, or administrative 1. President's salary. 2. Packages used to hold the skin wipes. 3. Cleaning materials used to clean the skin wipe packages. 4. Wages of workers who package the product. 5. Cost of advertising the product. 6. The salary of the supervisor of the workers who package the product. 7. Cost accountant's salary (the accountant works in the factory). 8. Cost of a market research survey. 9. Sales commissions paid as a percent of sales. 10. Depreciation of administrative office building. Problem B Classify the costs listed in the previous problem as either product costs or period costs.
Following items belong to the revenue, expenditure, human resources/payroll, production, or financing cycle. Classify each item based on the cycle it belongs to. a. Pay pay-as-you-earn (PAYE) payroll taxes b. Send material requisition to inventory c. Issue stock to investors d. Borrow money from the bank to purchase a new factory e. Complete receiving report f. Appoint replacement purchasing clerk g. Measure employee performance using a performance management system h. Choose suitable supplier of raw materials i. Ensure employees are up to date with the latest tax provisions j. Record personal and tax information for new employees