Required: a. Compute the total overhead cost. b. Compute the total product cost.
Q: Which of the following is not a product cost? Multiple Cholce O Direct materlals ) Direct labor…
A: Product cost is that which is not included in the direct manufacturing of the goods. Direct…
Q: Conversion costs are: A. direct material, direct labor, and manufacturing overhead. B. direct…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Identify the two types of costs that make upa product’s total cost.
A: Product costs are costs that are incurred to form a product that's supposed available to customers.…
Q: Required: Compute the following: 1. The standard cost per unit of product. 2. The actual cost per…
A: Here in this question, we are required to calculate standard cost, actual cost per unit and standard…
Q: Conversion costs include A. product and period costs B. direct labor and manufacturing overhead…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: The three major cost components of manufacturing a product are a. Direct materials, direct labor,…
A: Definition: Manufacturing cost: The cost incurred in the production process of the finished product…
Q: Conversion costs are a. direct materials plus direct labor. b. direct labor plus manufacturing…
A: Conversion cost: Cost of changing the materials into a finished product. It includes direct labor…
Q: Prepare (a) Statement of Equivalent Production Equivalent Units Input Units Output Items Units Qty…
A: Statement of Equivalent production Statement of Cost Statement of Valuation
Q: Conversion costs are direct materials plus direct labor. direct labor plus manufacturing overhead.…
A: Conversion Cost: Conversion cost can be defined as the summation of manufacturing overhead and…
Q: 1. Which of the following are period costs? Raw materials Direct materials and direct labor Direct…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: What does the following statement mean? “Accounting for overhead involves an important costbenefit…
A: Overheads are typically accounted by accumulating costs and dividing the total costs by the total…
Q: Need help to calculate the production cost per unit
A: The financial position of the company can be arrived from the income statement prepared by the…
Q: Which of the following is correct for total cost of product ? Material + Labor + FOH…
A: Total cost of product : Total cost is derived by adding costs of Material , Labor and Factory…
Q: Conversion costs are A. direct materials plus manufacturing overhead. B. direct labor plus…
A: Conversion cost are those cost which are incurred to convert raw material into finished goods.
Q: What are the three common approaches for assigning overhead costs to products?
A:
Q: Using Traditional Method of costing using direct labor hours as basis of applying overhead, what is…
A: Using traditional method of costing, cost of product = Prime cost + overhead cost allocated on the…
Q: For the purpose of calculating overapplication or overapplication of overheads, the applied…
A: In cost accounting, budgeting plays a key role in the control of the cost of the goods in the…
Q: Calculate the total absorbtion rate used to apportion manufacturing overhead by?
A: The absorption rate is assigned according to the various allocation grounds. Hours of direct work…
Q: Calculate the actual fixed production overheads f
A: We know that as per Actual Overhead = Budgeted Overhead Budgeted Overhead absorption rate per unit…
Q: 1. Classify the costs in the items below using the following format below. Identify the right answer…
A: The costs are classified as direct, indirect, and other factory overhead costs, selling and…
Q: Indicate the amounts requested below. Some amounts are shown in the illustrated T accounts; others…
A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…
Q: Using ABC, the total manufacturing costs per unit for product SuperPro is:
A: Calculation of Overhead Cost Per Unit of Cost Driver: Cost Item Cost Driver Cost Driver Units…
Q: Please explain:: What is the purpose of an overhead rate What are the steps to apply the overhead…
A: Requirement 1: The overhead rate is used to allocate the indirect cost to the direct costs being…
Q: For manufacturing costs to become expenses: O The product must be finished. The product must be…
A: Manufacturing cost is the total cost incurred in manufacturing the product. It includes the material…
Q: Required: Detemine the direct and indirect labor cost and allocate the labor costto each cost…
A: The cost paid to the labors for performing the work in the organization is known as labor cost. It…
Q: When factory overheads are added to prime cost then the result will be. a. Cost of material consumed…
A: Prime cost = Direct material + Direct labor Conversion costs = Direct labor + factory overheads Cost…
Q: COST ACCOUNTING - Process Costing Make a table for the solution. Compute for the equivalent…
A: The equivalent units are calculated on the basis of percentage for the completion of the work during…
Q: fit - Expenses = aterials Direct Labor = Manufacturing Costs = Cost of Goods Manufactured : WTD
A: As per rule, allowed to answer one question at a time and post the remaining in the next submission.
Q: what are the three major components of product costs: direct materials, direct labor, and…
A: The costs of producing a product are referred to as product costs. Direct material, direct labour,…
Q: Direct labour cost is an element of_________ a. All of the given options b. Prime cost c. Conversion…
A: A direct labor cost is referred to as the wages that are incurred directly to produce the goods or…
Q: Which of the following correctly describes the term cost driver? a.The primary factor which is…
A: Cost driver is the driver cause of which the cost is incurred. On the basis of this we find the…
Q: Using the above information derive a cost function that can be used to predict the total production…
A: High-low cost estimation method is used to segregate the fixed cost and variable cost element in…
Q: Define the following: (a) direct materials, (b) indirect materials, (c) direct labor, (d) indirect…
A: Cost: Cost can be defined as the cash and cash equivalent which is incurred against the products…
Q: COST ACCOUNTING - Process costing. Compute for the equivalent production of the following cases…
A: Process costing refers to an accounting system which is used by manufacturing companies who are…
Q: . Assume the company uses absorption costing. Determine its product cost per unit.
A: In order to obtain the product cost under absorption costing, first the per-unit costs are added…
Q: Required: -Allocate costs to products on the basis of labour hours -Over head cost rate = -…
A: Company Z has two service centers and two production centers. Now production centers have output in…
Q: a) What was the amount of direct materials used in production? b) What was the amount of…
A:
Q: Conversion costs include direct labor and manufacturing overhead. Select one: O a. FALSE O b. TRUE
A: Conversion costs: It is sum total of direct manufacturing labor costs and manufacturing overhead…
Q: Choose the three components of product cost from the list below. a) Indirect material, direct…
A: Product costs seem to be the expenses involved in the production of goods that have been meant for…
Q: Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production…
A: Process costing refers to an accounting system which is used by manufacturing companies who are…
Q: The three major cost components of manufacturing a product are,
A: Answer:(a) Manufacturing cost is the sum of costs of all used or consumed in the process of making a…
Q: Please answer the following: 1. What is cost of production report? 2. What is cost per equivalent…
A: Since you have posted a question with multiple subparts, we have solved the first three subparts for…
Q: Prime cost is:
A: Prime cost is the direct cost incurred in the process of manufacturing a product and typically…
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- The post-closing trial balance of Custer Products, Inc. on April 30 is reproduced as follows: During May, the following transactions took place: a. Purchased raw materials at a cost of 45,000 and general factory supplies at a cost of 13,000 on account (recorded materials and supplies in the materials account). b. Issued raw materials to be used in production, costing 47,000, and miscellaneous factory supplies costing 15,000. c. Recorded the payroll and the payments to employees as follows: factory wages (including 12,000 indirect labor), 41,000; and selling and administrative salaries, 7,000. Additional account titles include Wages Payable and Payroll. (Ignore payroll withholdings and deductions.) d. Distributed the payroll in (c). e. Recognized depreciation for the month at an annual rate of 5% on the building, 10% on the factory equipment, and 20% on the office equipment. The sales and administrative staff uses approximately one-fifth of the building for its offices. f. Incurred other expenses totaling 11,000. One-fourth of this amount is allocable to the office function. g. Transferred total factory overhead costs to Work in Process. h. Completed and transferred goods with a total cost of 91,000 to the finished goods storeroom. i. Sold goods costing 188,000 for 362,000. (Assume that all sales were made on account.) j. Collected accounts receivable in the amount of 345,000. k. Paid accounts payable totaling 158,000. Required: 1. Prepare journal entries to record the transactions. 2. Set up T-accounts. Post the beginning trial balance and the journal entries prepared in (1) to the accounts and determine the balances in the accounts on May 31. 3. Prepare a statement of cost of goods manufactured, an income statement, and a balance sheet. (Round amounts to the nearest whole dollar.)The following data summarize the operations during the year. Prepare a journal entry for each transaction. Purchase of raw materials on account: $3000 Raw materials used by Job 1: $500 Raw materials used as indirect materials: $100 Direct labor for Job 1: $300 Indirect labor incurred: $50 Factory utilities incurred on account: $700 Adjusting entry for factory depreciation: $250 Manufacturing overhead applied as percent of direct labor: 200% Job 1 is transferred to finished goods Job 1 is sold: $3,000 Manufacturing overhead is over applied: $100During the month, Job Arch2 used specialized machinery for 350 hours and incurred $700 in utilities on account. $400 in factory depreciation expense, and $200 in property tax on the factory. Prepare journal entries for the following: A. Record the expenses incurred. B. Record the allocation of overhead at the predetermined rate of $1.50 per machine hour.
- The books of Petry Products Co. revealed that the following general journal entry had been made at the end of the current accounting period: The total direct materials cost for the period was $40,000. The total direct labor cost, at an average rate of $10 per hour for direct labor, was one and one-half times the direct materials cost. Factory overhead was applied on the basis of $4 per direct labor hour. What was the total actual factory overhead incurred for the period? (Hint: First solve for direct labor cost and then for direct labor hours.)Recording issuing of materials Materials issued for the current month are as follows a. Determine the amount of materials transferred lo Work in Process and Factory Overhead for the current month. b.Illustrate (he effect on the accounts and financial statements of the materials transferred in (a).:Prepare the journal entry to record the factory wages of $25,000 incurred in the processing department and $15,000 incurred in the production department assuming payment will be made in the next pay period.
- Amounts for materials Big Timber Furniture Company manufactures furniture. Big Timber Furniture uses a job order cost system. Balances on June 1 from the materials ledger are as follows: The materials purchased during June are summarized from the receiving reports as follows: Materials were requisitioned to individual jobs as follows: The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a.Determine the total purchase of materials in June. b.Determine the amounts of materials transferred to Work in Process and Factory Overhead during June. c.Determine the June 30 balances that would be shown in the materials ledger accounts.Prepare the journal entry to record the factory wages of $28,000 incurred for a single production department assuming payment will be made in the next pay period.Glasson Manufacturing Co. produces only one product. You have obtained the following information from the corporations books and records for the current year ended December 31, 2016: a. Total manufacturing cost during the year was 1,000,000, including direct materials, direct labor, and factory overhead. b. Cost of goods manufactured during the year was 970,000. c. Factory Overhead charged to Work in Process was 75% of direct labor cost and 27% of the total manufacturing cost. d. The beginning Work in Process inventory, on January 1, was 40% of the ending Work in Process inventory, on December 31. e. Material purchases were 400,000 and the ending balance in Materials inventory was 60,000. No indirect materials were used in production. Required: Prepare a statement of cost of goods manufactured for the year ended December 31 for Glasson Manufacturing. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information.)
- JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD Eto Manufacturing had the following transactions during the month: (a) Purchased raw materials on account, 70,000. (b) Issued direct materials to Job No. 300, 25,000. (c) Issued indirect materials to production, 10,000. (d) Paid biweekly payroll and charged direct labor to Job No. 300, 8,000. (e) Paid biweekly payroll and charged indirect labor to production, 3,000. (f) Issued direct materials to Job No. 301, 20,000. (g) Issued indirect materials to production, 4,000. (h) Paid miscellaneous factory overhead charges, 6,000. (i) Paid biweekly payroll and charged direct labor to Job No. 301, 10,000. (j) Paid biweekly payroll and charged indirect labor to production, 2,000. REQUIRED Prepare general journal entries for transactions (a) through (j).The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment: Determine the following amounts: a. Cost of goods sold b. Direct materials cost c. Direct labor costCost of Direct Materials, Cost of Goods Manufactured, Cost of Goods Sold Bisby Company manufactures fishing rods. At the beginning of July, the following information was supplied by its accountant: During July, the direct labor cost was 43,500, raw materials purchases were 64,000, and the total overhead cost was 108,750. The inventories at the end of July were: Required: 1. What is the cost of the direct materials used in production during July? 2. What is the cost of goods manufactured for July? 3. What is the cost of goods sold for July?