On April 1st, an automobile manufacturer had no beginning inventories. It purchased 8,400 batteries at a cost of $90 per battery. It withdrew 7,800 batteries from the storeroom during the month. Of these, 50 were used to replace batteries in cars being used by the company's traveling sales staff. The remaining batteries withdrawn from the storeroom were installed in cars being manufactured by the company. Of the cars in production during April, 80 percent were completed and transferred from work in process to finished goods. Of the cars completed during the month, 20 percent were unsold at April 30th. How much of the total battery cost would be included in Work in Process at the end of April?

On April 1st, an automobile manufacturer had no beginning inventories. It purchased 8,400 batteries at a cost of $90 per battery. It withdrew 7,800 batteries from the storeroom during the month. Of these, 50 were used to replace batteries in cars being used by the company's traveling sales staff. The remaining batteries withdrawn from the storeroom were installed in cars being manufactured by the company. Of the cars in production during April, 80 percent were completed and transferred from work in process to finished goods. Of the cars completed during the month, 20 percent were unsold at April 30th. How much of the total battery cost would be included in Work in Process at the end of April?

Name: On April 1st, an automobile manufacturer had no beginning inventories
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: On April 1st, an automobile manufacturer had no beginning inventories. It purchased 8,400 batteries at a cost of$90 per battery. It withdrew 7,800 batteries from the storeroom during the month. Of these, 50 were used toreplace batteries in cars bein

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 7RE

See similar textbooks

Similar questions

What is the cost of direct labor f the conversion costs are $330.000 and manufacturing overhead is $275,000? $55,000 $275,000 $330,000 $605,000
Classifying costs as factory overhead Which of the following items are properly classified as part of factory overhead for Caterpillar? a. Amortization of patents on new assembly process b.Consultant fees for a study of production line employee productivity C. Depreciation on Peoria. Illinois, headquarters building d.Factory supplies used in the Morganton. North Carolina, engine parts plant e.Interest expense on debt f. Plant manager's salary at Aurora, Illinois, manufacturing plant g.Properly taxes on the Danville, Kentucky, tractor tread plant h.Sales incentive fees to dealers i. Steel plate j. Vice president of finance's salary
How would each of the following costs be classified if units produced is the activity base? a. Salary of factory supervisor ($120,000 per year) b. Straight-line depreciation of plant and equipment c. Property rent of $11,500 per month on plant and equipment
Loring Company incurred the following costs last year: Direct materials$216,000Sales salaries$65,000Factory rent24,000Advertising37,000Direct labor120,000Depreciation on the headquarters building10,000Factory utilities6,300Salary of the corporate receptionist30,000Supervision in the factory50,000Other administrative costs175,000Indirect labor in the factory30,000Salary of the factory receptionist28,000Depreciation on factory equipment9,000Sales commissions27,000 Required: Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, $216,000. Product CostPeriod CostCostsDirect MaterialsDirect LaborManufacturing OverheadSelling ExpenseAdministrative ExpenseDirect materials$216,000 What was the total product cost for last year? What was the total period cost for last year? If 30,000 units were produced last year, what was the unit product cost?
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?
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?
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
Tom Corporation Tom Corporation incurred the following costs while manufacturing its product. Materials used in production P120,000 Advertising expense P45,000 Depreciation on plant 60,000 Property taxes on plant 19,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line workers 110,000 Sales commissions 35,000 Factory supplies used 25,000 Salaries paid to sales clerks 50,000 Work-in-process inventory was P10,000 at January 1 and P14,000 at December 31. Finished goods inventory was P60,500 at January 1 and P50,600 at December 31. Note: Assume all materials were direct. Requirement: Using the given information, compute for: Cost of goods manufactured Cost of goods sold
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.
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…
7. Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product $120,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 14,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line Sales commissions 35,000 Workers 110,000 Salaries paid to sales Factory supplies used 23,000 clerks 50,000 Work in process inventory was $12,000 at January 1 and $15,500 at December 31. Finished goods inventory was $60,000 at January 1 and $45,600 at December 31. Instructions Compute cost of goods manufactured. Compute cost of goods sold.
Given the following costs incurred in a recent period: Direct materials - P33,000 Depreciation on factory equipment - P12,000 Factory janitor’s salary - P23,000 Direct labor - P28,000 Utilities for factory - P9,000 Selling expenses - P16,000 Production supervisor’s salary - P34,000 Administrative expenses - P21,000. Determine the following values: • period cost • product cost • operating expenses