Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $552 each. Costs 1. Plastic for casing-$16,000 2. Wages of assembly workers-$90,000 3. Property taxes on factory-$4,000 4. Accounting staff salaries-$30,000 5. Drum stands (1,000 stands purchased)-$39,000 6. Rent cost of equipment for sales staff-$48,000 7. Upper management salaries-$225,000 8. Annual flat fee for factory maintenance service$15,000 9. Sales commissions-$15 per unit 10. Machinery depreciation, straight-line-$44,000 Required: 1. Classify each cost and its amount as (a) either variable or fixed and (b) either product or period. (The first cost is completed as an example.) Cost by Behavior Cost by Function Costs Variable Fixed Product Period 1. Plastic for casing $ 16,000 $ 16,000 2. Wages of assembly workers 3. Property taxes on factory 4. Accounting staff salaries 5. Drum stands 6. Rent cost of equipment for sales staff 7. Upper management salaries 8. Annual flat fee for factory maintenance service 9. Sales commissions 10. Machinery depreciation, straight-line

Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $552 each. Costs 1. Plastic for casing-$16,000 2. Wages of assembly workers-$90,000 3. Property taxes on factory-$4,000 4. Accounting staff salaries-$30,000 5. Drum stands (1,000 stands purchased)-$39,000 6. Rent cost of equipment for sales staff-$48,000 7. Upper management salaries-$225,000 8. Annual flat fee for factory maintenance service$15,000 9. Sales commissions-$15 per unit 10. Machinery depreciation, straight-line-$44,000 Required: 1. Classify each cost and its amount as (a) either variable or fixed and (b) either product or period. (The first cost is completed as an example.) Cost by Behavior Cost by Function Costs Variable Fixed Product Period 1. Plastic for casing $ 16,000 $ 16,000 2. Wages of assembly workers 3. Property taxes on factory 4. Accounting staff salaries 5. Drum stands 6. Rent cost of equipment for sales staff 7. Upper management salaries 8. Annual flat fee for factory maintenance service 9. Sales commissions 10. Machinery depreciation, straight-line

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1E: Classify Costs Following is a list of various costs incurred in producing replacement automobile...

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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)
Classify Costs Following is a list of various costs incurred in producing replacement automobile parts. With respect to the production and sale of these auto parts, classify each cost as either variable, fixed, or mixed. 1. Oil used in manufacturing equipment 2. Plastic 3. Property taxes, 165,000 per year on factory building and equipment 4. Salary of plant manager 5. Cost of labor for hourly workers 6. Packaging 7. Factory cleaning costs, 6,000 per month 8. Metal 9. Rent on warehouse, 10,000 per month plus 25 per square foot of storage used 10. Property insurance premiums, 3,600 per month plus 0.01 for each dollar of property over 1,200,000 11. Straight-line depreciation on the production equipment 12. Hourly wages of machine operators 13. Electricity costs, 0.20 per kilowatt-hour 14. Computer chip (purchased from a vendor) 15. Pension cost, 1.00 per employee hour on the job
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. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
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.
The Dotson Company began business on January 1, 2016. During the year, the company paid $120,000 for materials used in the production process and $300,000 in wages for the production workers. The rent and utilities of the manufacturing plant totaled $80,000. Selling costs amounted to $150,000. The company made 250,000 units and sold 210,000 units for $5 each. What was the company’s production cost per unit?
Listed here are the total costs associated with the 2011 production of 1,000 drum sets manufactured by NeatBeat. The drum sets sell for $564 each. (Assume there is no ending inventory in the year 2011.) Costs 1. Plastic for casing - $21,000 2. Wages of assembly workers - $80,000 3. Property taxes on factory - $7,000 4. Accounting staff salaries - $41,000 5. Drum stands (1,000 stands outsources) - $39,000 6. Rent cost of equipment for sales staff - $48,000 7. Upper management salaries - $205,000 8. Annual flat fee for maintenance service - $17,000 9. Sales commissions per unit - $22 10. Machinery depreciation - $37,000 Required: 2. Compute the manufacturing cost per drum set.
Listed here are the total costs associated with the 2011 production of 1,000 drum sets manufactured by NeatBeat. The drum sets sell for $564 each. (Assume there is no ending inventory in the year 2011.) Costs 1. Plastic for casing - $21,000 2. Wages of assembly workers - $80,000 3. Property taxes on factory - $7,000 4. Accounting staff salaries - $41,000 5. Drum stands (1,000 stands outsources) - $39,000 6. Rent cost of equipment for sales staff - $48,000 7. Upper management salaries - $205,000 8. Annual flat fee for maintenance service - $17,000 9. Sales commissions per unit - $22 10. Machinery depreciation - $37,000 Required: 1. Classify each cost and its amount as (a) either fixed or variable and (b) either product or period.
Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $510 each. Costs 1. Plastic for casing—$17,000 2. Wages of assembly workers—$86,000 3. Property taxes on factory—$6,000 4. Accounting staff salaries—$36,000 5. Drum stands (1,000 stands purchased)—$31,000 6. Rent cost of equipment for sales staff—$48,000 7. Upper management salaries—$170,000 8. Annual flat fee for factory maintenance service—$13,000 9. Sales commissions—$20 per unit 10. Machinery depreciation, straight-line—$45,000 2. Compute the manufacturing cost per drum set. TrueBeat Calculation of Manufacturing Cost per Drum Set Item Total cost Per unit cost Variable production costs Total variable production costs Fixed production costs Total fixed production costs Total production cost
Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $510 each. Costs 1. Plastic for casing—$17,000 2. Wages of assembly workers—$86,000 3. Property taxes on factory—$6,000 4. Accounting staff salaries—$36,000 5. Drum stands (1,000 stands purchased)—$31,000 6. Rent cost of equipment for sales staff—$48,000 7. Upper management salaries—$170,000 8. Annual flat fee for factory maintenance service—$13,000 9. Sales commissions—$20 per unit 10. Machinery depreciation, straight-line—$45,000 Required:1. Classify each cost and its amount as (a) either variable or fixed and (b) either product or period. (The first cost is completed as an example.) Cost by Behavior Cost by Function Costs Variable Fixed Product Period 1. Plastic for casing $17,000 $17,000 2. Wages of assembly workers 3. Property taxes on factory 4. Accounting…
Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat. Costs 1. Plastic for casing—$21,000 2. Wages of assembly workers—$80,000 3. Property taxes on factory—$8,000 4. Office accounting salaries—$41,000 5. Drum stands—$35,000 6. Rent cost of office for accountants—$12,000 7. Office management salaries—$165,000 8. Annual fee for factory maintenance—$12,000 9. Sales commissions—$15,000 10. Factory machinery depreciation, straight-line—$39,000 1. Classify each cost and its amount as either product or period. The first cost is completed as an example. 2. Compute the average manufacturing cost per drum set. Please don't provide solution image based thnx
The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $500 each. The company has a 25% income tax rate. Variable production costs Plastic for casing . . . . . . . . . . . . . . . . . . . . . . $17,000 Wages of assembly workers . . . . . . . . . . . . . 82,000 Drum stands . . . . . . . . . . . . . . . . . . . . . . . . . 26,000 Variable selling costs Sales commissions . . . . . . . . . . . . . . . . . . . . 15,000 Fixed manufacturing costs Taxes on factory . . . . . . . . . . . . . . . . . . . . . . . $ 5,000 Factory maintenance . . . . . . . . . . . . . . . . . . . 10,000 Factory machinery depreciation . . . . . . . . . . 40,000 Fixed selling and administrative costs Lease of equipment for sales staff . . . . . . . . 10,000 Accounting staff salaries . . . . . . . . . . . . . . . . 35,000 Administrative management salaries . . . . . . 125,000 Required 1. Prepare a…