Pina Colada Corp. incurred the following costs while manufacturing its product. Materials used in product $53,400 $126,100 Advertising expense 70,700 Property taxes on plant Depreciation on plant 16,500 Property taxes on store 8,060 Delivery expense 22.000 Labor costs of assembly-line workers 111,900 Sales commissions 44,200 Factory supplies used 24.000 Salaries paid to sales clerks 51,100 Work in process inventory was $14,300 at January 1 and $16,600 at December 31. Finished goods inventory was $70,600 at January 1 and $45,900 at December 31. Part 1 Your answer is incorrect. Compute cost of goods manufactured.

Pina Colada Corp. incurred the following costs while manufacturing its product. Materials used in product $53,400 $126,100 Advertising expense 70,700 Property taxes on plant Depreciation on plant 16,500 Property taxes on store 8,060 Delivery expense 22.000 Labor costs of assembly-line workers 111,900 Sales commissions 44,200 Factory supplies used 24.000 Salaries paid to sales clerks 51,100 Work in process inventory was $14,300 at January 1 and $16,600 at December 31. Finished goods inventory was $70,600 at January 1 and $45,900 at December 31. Part 1 Your answer is incorrect. Compute cost of goods manufactured.

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 25E: Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual...

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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)
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Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)
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Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels were made, and 31,000 were sold for 52 each. The actual unit cost is as follows: The selling expenses consisted of a commission of 1.30 per unit sold and advertising copayments totaling 95,000. Administrative expenses, all fixed, equaled 183,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 132,600 for 3,400 easels. Required: 1. Calculate the number and the dollar value of easels in ending finished goods inventory. 2. Prepare a cost of goods sold statement. 3. Prepare an absorption-costing income statement. Add a column for percentage of sales.
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