PROBLEM 4Marquess Corporation has provided the following partial listing of costs incurred during May:Marketing salaries.$39,000$8,000Property taxes, factoryAdministrative travel.$102,000$73,000$31,000$197,000$145,000$39,000$78,000Sales commissionsIndirect labor.Direct materials.Advertising.Depreciation of production equipment.......Direct labor....Required:a. What is the total amount of product cost listed above? Show your work.b. What is the total amount of period cost listed above? Show your work.

Answer:- Product cost meaning:- The overall expenses associated with creating and preparing a…

PROBLEM 4 Marquess Corporation has provided the following partial listing of costs incurred during May: Marketing salaries........... $39,000 Property taxes, factory $8,000 Administrative travel........ Sales commissions. Indirect labor............ Direct materials. Advertising..... Depreciation of production equipment.... Direct labor........ $102,000 $73,000 $31,000 $197,000 $145,000 $39,000 $78,000 Required: a. What is the total amount of product cost listed above? Show your work. b. What is the total amount of period cost listed above? Show your work.

PROBLEM 4 Marquess Corporation has provided the following partial listing of costs incurred during May: Marketing salaries........... $39,000 Property taxes, factory $8,000 Administrative travel........ Sales commissions. Indirect labor............ Direct materials. Advertising..... Depreciation of production equipment.... Direct labor........ $102,000 $73,000 $31,000 $197,000 $145,000 $39,000 $78,000 Required: a. What is the total amount of product cost listed above? Show your work. b. What is the total amount of period cost listed above? Show your work.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...

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Communication The controller of New Wave Sounds Inc. prepared the following product profitability report for management, using activity-based costing methods for allocating both the factory overhead and the marketing expenses. As such, the controller has confidence in the accuracy of this report. Home Theater Speakers Wireless Speakers Wireless Headphones Total Sales 1,500,000 1,200,000 900,000 3,600,000 Cost of goods sold 1,050,000 720,000 810,000 2,580,000 Gross profit 450,000 480,000 90,000 1,020,000 Marketing expenses 600,000 120,000 72,000 792,000 Income from operations (150,000) 360,000 18,000 228,000 In addition, the controller interviewed the vice president of marketing, who provided the following insight into the company's three products: The home theater speakers are an older product that is highly recognized in the marketplace. The wireless speakers are a new product that was just recently bunched. The wireless headphones are a new technology that has no competition in the marketplace, and it is hoped that they will become an important future addition to the companys product portfolio. Initial indications are that the product is well received by customers. The controller believes that the manufacturing costs for all three products are in line with expectations. Based on the information provided: 1. Calculate the ratio of gross profit to sales and the ratio of income from operations to sales for each product. 2. Write a brief (one page) memo using the product profitability report and the calculations in (1) to make recommendations to management with respect to strategies for the three products.
Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each 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?
Financial statements of a manufacturing firm The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: a. Purchased 250,000 of materials. b. Used 180,000 of direct materials in production. c. Incurred 450,000 of direct labor wages. d. Incurred 180,000 of factory overhead. e. Transferred 760,000 of work in process to finished goods. f. Sold goods for 1,200,000. g. Sold goods with a cost of 675,000 h. Incurred 215,000 of selling expense i. Incurred 125,000 of administrative expense Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. b. Determine the inventory balances at the end of the first month of operations.
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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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2-30 Cost of Goods Manufactured Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers. During the month of March, the company purchased 350,000 of materials. Also during the month of March, Morning Smiles incurred direct labor cost of 74,000 and manufacturing overhead of 190,000. Inventory information is as follows: Required: 1. Calculate the cost of goods manufactured for the month of March. 2. Calculate the cost of one coffee maker assuming that 8,100 coffee makers were completed during March.
2. Burnham Industries incurs the following costs for the month: Direct materials $2,000 Direct labor 3,000 Factory depreciation expense 3,500 Factory utilities expense 750 CEO's salary 4,000 How much is the prime cost? How much is the conversion cost? PLEASE NOTE: All amounts rounded to whole dollar and shown with "$" and commas as needed (i.e. $12,345).
Factory utilities Direct labor $79,100 13,500 8,000 Depreciation on 12,650 Factory manager's factoryequipm salary ent Factory repairs 2,000 2,640 Indirect factory 48,900 Administrative office labor supplies used Indirect materials 70,800 Sales salaries 48,400 23,000 Direct materials 157,600 Advertising used How much is the total period cost in May?
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Rios Corporation reports costs for the year as follows: Direct Materials Used $465,000 Wages to Line Workers 240,000 Office Rent 72,500 Indirect Materials Used 480,000 How much is the total product costs for the year? A. $1,257,500 B. $1,185,000 C. $705,000 D. $480,000 Click