Required: Compute the cost per gallon of liquid cleaner produced in June. (Round your answer to 2 decimal places.)
Q: Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on…
A: SOLUTION- WORKING NOTES- COST OF GOOD SOLD - PARTICULARS AMOUNT DIRECT MATERIAL PER UNIT…
Q: Synergy Inc. manufactured 6,000 units during the month of March. They incurred direct materials cost…
A: Definition: Cost of labor: The cost of labor can be defined as the sum of all wages paid to…
Q: Carson Manufacturing, Inc. makes refrigerator replacement parts. In May, Carson produced 2,000 un…
A: The prime cost of an item seems to be the direct cost spent in the production process, which…
Q: During June, the plant produced 15,000 pools and incurred the following costs: a. Purchased 60,000…
A: Variance Analysis - It is the difference between actual cost and standard cost over the particular…
Q: Walastik Company makes and sells a popular household product and its annual sales average 14,000…
A:
Q: xample Ltd is a manufacturer. It produced 2,000 units in April. The following cost information is…
A: While producing an item, various costs are incurred by the firm. These costs can be direct costs…
Q: Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on…
A: Given, production costs is for 25000 units but actual units sold = 19500 So the cost of goods sold…
Q: New Jersey Valve Company manufactured 7,800 units during January of a control valve used by milk…
A: Variance analysis involves comparison of budgeted and actual figures relating to different items of…
Q: Guess Apparel completed 3,600 expensive bags during the 1" quarter of the current year. The…
A: Cost of production(COP) refers to material, labours and overheads incurred during production.
Q: Coucou Manufacturing Inc. has provided the following information concerning its manufacturing cost…
A: The budget is prepared to estimate the costs in advance.
Q: New Jersey Valve Company manufactured 7,800 units during January of a control valve used by milk…
A: Variance is the difference between the actual results and budgeted results.
Q: Product Cost in Total and Per Unit Grin Company manufactures digital cameras. In January, Grin…
A: Product Cost = Direct Material + Direct Labor + Overhead Costs on Manufacturing Product cost per…
Q: Strait Co. manufactures office furniture. During the most productive month of the year, 3,000 desks…
A: High low method: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest…
Q: Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost…
A: Variance analysis is a form of study that looks at the discrepancy between expected and actual data.…
Q: Custom Engines Company has the following estimated costs for the upcoming year: Direct labor costs…
A: The Numerical has covered the concept of predetermined overhead, The Predetermined overhead rate is…
Q: Denver City Manufacturing currently produces 2,000 glasses per month. The following per unit data…
A: Total variable cost per unit = Direct materials + Direct manufacturing labor + Variable…
Q: Jose Corp makes bottles using the latest automated technology. The company applies FOH cost to…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: Product Cost in Total and Per Unit Grin Company manufactures digital cameras. In January, Grin…
A: 1. Calculate the amount of product cost in January.
Q: Genuine Spice Inc. began operations on January 1 of the current year. The company produces8-ounce…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on…
A: The income statement is prepared to find the net income or loss of the business.
Q: Walastik Company makes and sells a popular household product and its annual sales average 14,000…
A: The question is related to Shut down point and shut down cost. The details are given. Shutdown point…
Q: Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on…
A: Variable costs are those which may change with the change in the level of goods produced by an…
Q: Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on…
A: PLEASE GIVE A LIKE, your response matters a Shawnee Motors Inc.…
Q: In September, Candy Company produced 1,000 units of product. 2,080 units of raw materials were used…
A: Standard hours = Hours per unit x number of units = 1/2 x 1000 =500 Actual hours =97.6 % of 500 =…
Q: over/underapplied factory overhead
A: Overhead application rate = Estimated factory overhead/Normal direct labor hours Estimated…
Q: The owner of Magic Manufacturing, Tom Sawyer, is considering selling his business. He provides his…
A: The question is related to Cost Sheet. The details are given regarding the same. Adjusted Cost of…
Q: Nobel Ltd is a wool coat manufacturer. It produced 80 units in September. The following cost…
A: The total direct costs of manufacturing, comprising direct materials and labour, are referred to as…
Q: Rand Company produces dry fertilizer. At the beginning of the year, Rand had the following standard…
A: Jounral Entry - It is a record of every business transaction over day-to-day life whether it is…
Q: The following data are used for questions 7 to 11 The AAA Company build wooden bookshelf wall units.…
A: Total purchased cost is an accounting concept that includes all the costs associated with buying…
Q: Wyckam Manufacturing Inc. has provided the following estimates concerning its manufacturing costs:…
A: The budget is prepared by the management based on experience. Based on the budget, It is helpful for…
Q: XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,00 each month.…
A: Solution: Particulars Cost (per Basketball bat) Direct material 1.00 Direct labour 0.50…
Q: Shawnee Motors Inc. assembles and sells snowmobile engines. The company began operations on August 1…
A: Step 1: Compute the cost per unit: Step 2: Prepare the income statement:
Q: Trippett Industries manufactures cleaning products. During the year, the company spent $600,000 on…
A: The correct answer is $468,000.
Q: Genuine Spice Inc. began operations on January 1 of the current year. The company produces8-ounce…
A: All amounts are in dollar($). Since we only answer up to 3 sub-parts, we’ll answer the first 3.…
Q: Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost…
A: Given Data: Actual labor hours worked = 330,000 Standard overhead rate = $2 The formula's to be…
Q: Enviro Corporation manufactures a special liquid cleaner at its Green plant. Operating data for June…
A: Cost per unit: It is to be derived by dividing the total units from the Total cost incurred which…
Q: Wrap-It Company, a manufacturer of wrapping paper, began operations on June 1 of the current year.…
A: Absorption (full) costing: Absorption (full) costing is a costing technique in which all the…
Q: Zeitgeist Company manufactures silicon sleeves for MP3 players. In August of last year, Zeitgeist…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras.…
A: Here in this question, we are required to how much production cost transferred to finished goods.…
Q: Jose Corp makes bottles using the latest automated technology. The company applies FOH cost to…
A: Factory Overhead rate = Factory Overhead Cost / Machine hours = P1,800,000 / 150,000 hours = P12 per…
Q: Pattison Products, Inc., began operations in October and manufactured 48,000 units during the month…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: Water Control, Inc. manufactures water pumps and uses a standard cost system. The standard factory…
A: Fixed overhead spending variance = Budgeted overhead - actual overhead Variable overhead spending…
Q: Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras.…
A: Work in process (WIP) or in-process inventory are the company’s partly finished goods which are yet…
Q: The Nablus Manufacturing Company produces steel wheels. The cost per unit at a production level of…
A: 1. Total Variable cost per unit = Direct Material Cost +Direct Labour Cost + Variable manufacturing…
Q: Enviro Corporation manufactures a special liquid cleaner at its Green Plant. Operating data for June…
A: Given the following information: Material: $714,000 Labor: $61,200 Manufacturing overhead: $244,800…
Q: Carson Manufacturing, Inc. makes refrigerator replacement parts. In May, Carson produced 2,000…
A: Total direct material cost = direct material cost per unit x no. of units produced = $15 x 2000…
Q: Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct…
A: Standard costing means where standard is set for various cost element and actual cost is then…
Enviro Corporation manufactures a special liquid cleaner at its Green plant. Operating data for June follow:
Materials $ 308,000
Labor 38,000
Manufacturing overhead 246,000
The Green plant produced 1,600,000 gallons in June. The plant never has any beginning or ending inventories.
Required:
Compute the cost per gallon of liquid cleaner produced in June. (Round your answer to 2 decimal places.)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet: Algers computes its overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows: a. Units produced: 53,000 b. Direct materials purchased: 274,000 pounds at 2.50 per pound c. Direct materials used: 270,300 pounds d. Direct labor: 40,100 hours at 17.95 per hour e. Fixed overhead: 161,700 f. Variable overhead: 122,000 Required: 1. Compute price and usage variances for direct materials. 2. Compute the direct labor rate and labor efficiency variances. 3. Compute the fixed overhead spending and volume variances. Interpret the volume variance. 4. Compute the variable overhead spending and efficiency variances. 5. Prepare journal entries for the following: a. The purchase of direct materials b. The issuance of direct materials to production (Work in Process) c. The addition of direct labor to Work in Process d. The addition of overhead to Work in Process e. The incurrence of actual overhead costs f. Closing out of variances to Cost of Goods SoldZoller Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: During the first week of operation, the company experienced the following actual results: a. Bars produced: 143,000. b. Ounces of direct materials purchased: 901,200 ounces at 0.21 per ounce. c. There are no beginning or ending inventories of direct materials. d. Direct labor: 11,300 hours at 17.30.Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
- Zippy Inc. manufactures a fuel additive, Surge, which has a stable selling price of 44 per drum. The company has been producing and selling 80,000 drums per month. In connection with your examination of Zippys financial statements for the year ended September 30, management has asked you to review some computations made by Zippys cost accountant. Your working papers disclose the following about the companys operations: Standard costs per drum of product manufactured: Materials: Costs and expenses during September: Chemicals: 645,000 gallons purchased at a cost of 1,140,000; 600,000 gallons used. Empty drums: 94,000 purchased at a cost of 94,000; 80,000 drums used. Direct labor: 81,000 hours worked at a cost of 816,480. Factory overhead: 768,000. Required: Calculate the following for September, using the formulas on pages 421422 and 424 (Round unit costs to the nearest whole cent and compute the materials variances for both Surge and for the drums.): 1. Materials quantity variance. 2. Materials purchase price variance. 3. Labor efficiency variance. 4. Labor rate variance.During the week of May 10, Hyrum Manufacturing produced and shipped 16,000 units of its aluminum wheels: 4,000 units of Model A and 12,000 units of Model B. The cycle time for Model A is 1.09 hours and for Model B is 0.47 hour. The following costs and production hours were incurred: Required: 1. Assume that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Assume that Model A is responsible for 40% of the materials cost. Calculate the unit cost for Models A and B, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. Calculate the unit cost for the two models, using DBC. Explain when and why this cost is more accurate than the unit cost calculated in Requirement 2.Cozy, Inc., manufactures small and large blankets. It estimates $350,000 in overhead during the manufacturing of 75,000 small blankets and 25,000 large blankets. What is the predetermined overhead rate if a small blanket takes 1 machine hour and a large blanket takes 2 machine hours?
- 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.York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of direct labor. The cost to make job 0325 is $70 in aluminum and two hours of labor at $20 per hour. During the month. York incurs $50 in indirect material cost. $150 in administrative labor, $300 in utilities, and $250 in depreciation expense. What is the predetermined overhead rate if direct labor hours are considered the cost driver? What is the cost of Job 0325? What is the overhead incurred during the month?Argo Manufacturing Co. had 500 units, three-fifths completed, in process at the beginning of the month. During the month, 2,000 units were started in process and finished. There was no work in process at the end of the month. Unit cost of production for the month was 1.20. Costs for materials, labor, and factory overhead incurred in the current month totaled 2,655. Calculate the unit cost for the prior month. (Hint: You must first determine what the dollar balance in work in process must have been at the beginning of the month, as well as the equivalent production of the units in beginning inventory.)
- Spoiled work Roger Company manufactures tennis clothing. During the month, the company cut and assembled 8,000 skirts. One hundred of the skirts did not meet specifications and were considered seconds. Seconds are sold for 9.95 per skirt, whereas first-quality skirts sell for 39.95. During the month, Work in Process was charged 108,000: 36,000 for materials, 48,000 for labor, and 24,000 for factory overhead. Record the entries to first charge production costs for the period and to then record the loss due to spoiled work, under each of the following conditions: a. The loss due to spoiled work is spread over all jobs in the department. b. The loss due to spoiled work is charged to the specific job because it is a special order.SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year: Last year, Brody completed 100,000 units. Sales revenue equaled 1,200,000, and Brody paid a sales commission of 5 percent of sales. Required: 1. Calculate the direct materials used in production for last year. 2. Calculate total prime cost. 3. Calculate total conversion cost. 4. Prepare a cost of goods manufactured statement for last year. Calculate the unit product cost. 5. Prepare a cost of goods sold statement for last year. 6. Prepare an income statement for last year. Show the percentage of sales that each line item represents.