Sentiments, Inc., is a greeting card manufacturer. The following selected cost data is for the year ended December 31. Description Dollar Amount Cost of delivery to customers President's salary costs Marketing costs Supervisor salary (factory) Printing ink for cards Factory equipment depreciation Factory utility costs Assembly line worker's wages $16,000 $120,000 $49,000 $90,000 $52,000 $32,000 $24,000 $102,000| $92,000 $4,000 $128,000 $18,000 $68,000 Sales commission Lubricants for factory equipment Pulp paper costs Property taxes on factory Admin costs (head office) Total prime costs for the year are: Total conversion costs for the year are:

Sentiments, Inc., is a greeting card manufacturer. The following selected cost data is for the year ended December 31. Description Dollar Amount Cost of delivery to customers President's salary costs Marketing costs Supervisor salary (factory) Printing ink for cards Factory equipment depreciation Factory utility costs Assembly line worker's wages $16,000 $120,000 $49,000 $90,000 $52,000 $32,000 $24,000 $102,000| $92,000 $4,000 $128,000 $18,000 $68,000 Sales commission Lubricants for factory equipment Pulp paper costs Property taxes on factory Admin costs (head office) Total prime costs for the year are: Total conversion costs for the year are:

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 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019, they generated $720,000 in service revenue. Their total cost (fixed and variable) per client was $2,500 and they served 115 clients during the year. If operating expenses for the year were $302,000 what was their net income?
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
Use the following information for Brief Exercise: Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers and sold 8,000 coffee makers during the month of March at a total cost of 612,500. Each coffee maker sold at a price of 100. Morning Smiles also incurred two types of selling costs: commissions equal to 5% of the sales price and other selling expense of 45,000. Administrative expense totaled 47,500. 2-33 Income Statement Percentages Refer to the information for Morning Smiles Coffee Company on the previous page. Required: Prepare an income statement for Morning Smiles for the month of March and calculate the percentage of sales revenue represented by each line of the income statement. (Note: Round answers to one decimal place.)
Following are the data extracted from Alma Corporation, at the end of December 1, 2019: Sales …………14,000,500 Sales Return ……………. P 25,200 Purchases (net) . 2,400,000 Transportation inward … 32,000 Direct Labor …… 3,204,000 FOH (total) ………………….1,885,600 Sales salaries ….. 200,000 Advertising expense…… 155,000 Delivery Expense 65,000 During the year 25,000 units were completed: Inventories December, 2019 January, 2019 Finished Goods ………… P 467,400 ……………. P 620,000 Work in Process ……………….. 136,800 ..…………... 129,800 Materials …………………………. 196,000 …................. 176,000 Required: Compute for the following: (Show your solution in the space provided) 1. Total Factory Cost 2. Cost of Goods Manufactured 3. Per unit cost of goods manufactured 4. Cost of Goods Sold 5. Gross Profit and Net Profit
JOURNAL ENTRIES - ACTUAL COST SYSTEM The following transactions of Lakay Manufacturers were incurred during the month of May. a. Materials purchases on account, P750,000. b. Purchase returns and allowances, P50,000. c. Payment of payroll: Total Earnings P655,000 Less: SSS premiums P17,500 Philhealth premiums 8,000 Pag-IBIG premiums 2,500 Withholding taxes 12,000 Advances to employees 65,000 Union dues 30,000 135,000 Net amount P520,000 d. Breakdown of the payroll: factory, 60% (Direct labor - 50%, Superintendence - 40%; Indirect labor - 10%); sales, 25%; and, office, 15%. e. Disbursements are made for the following: Insurance premiums - factory building and contents P2,500 Lubricants, rags, brooms and insecticide 800 Electricity bill 4,100 Water bill 900 f. Sales on account, P2,200,000. g. Sales returns and allowances, P60,000. h. The following are paid: Bond paper, pencils and other office supplies P1,500 TV and radio advertisements 6,000 Plastic bags, masking tapes and…
Presented here is the income statement for Fairchild Co. for March: Sales $ 81,500 Cost of goods sold 43,000 Gross profit $ 38,500 Operating expenses 31,000 Operating income $ 7,500 Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 34%.Required: Rearrange the preceding income statement to the contribution margin format. Calculate operating income if sales volume increases by 10%. Calculate the amount of revenue required for Fairchild to break even. rev: 10_17_2020_QC_CS-236193
Practice: The following data are taken from the accounting records of Gregory Mfg. Co.: 2019 2018 Ending inventories: Materials $ 100,000 $80,000 Work in Process $64,000 $56,000 Finished Goods $140,000 $170,000 Manufacturing goods: Direct materials used $657,000 Direct labor costs charged to production $270,000 Manufacturing Overhead $378,000 Show All Calculations: Outline a schedule of cost of goods manufactured for 2019 in good form The company generally prices products adding 20% to the cost of goods sold. Determine the total revenue the company would have generated in 2019.
The December 31, 19xB trial balance of the Cristiano Company showed Sales $4,000,500 Sales Return & Allowances $25,200 Purchases (Net) 2,400,000 Transportation-in 32,000 Direct Labor 3,204,000 Factory Overhead 1,885,600 Sales Salaries 200,000 Advertising Expense 155,000 Delivery Expense 65,000 inventories December 31, 19xB December 31, 19xA Finished Goods $467,400 $620,000 Work in Process 136,800 129,800 Materials 196,000 176,000 Required: Total Manufacturing Cost Cost of Goods Manufactured (COGM) Cost of Goods Sold (COGS)
Foremost Footwear Inc.Product-Line Income StatementFor the Year Ended April 30, 20Y7 Children's Shoes Men's Shoes Women's Shoes Total Sales $165,000 $300,000 $500,000 $965,000 Costs of goods sold: Variable costs $105,000 $150,000 $220,000 $475,000 Fixed costs 32,000 60,000 120,000 212,000 Total cost of goods sold $137,000 $210,000 $340,000 $687,000 Gross profit $28,000 $90,000 $160,000 $278,000 Selling and adminstrative expenses: Variable selling and admin. expenses $21,000 $45,000 $95,000 $161,000 Fixed selling and admin. expenses 17,000 20,000 25,000 62,000 Total selling and admin. expenses $38,000 $65,000 $120,000 $223,000 Income (loss) from operations $(10,000) $25,000 $40,000 55,000 If the Children Shoe's are discontinued, the company's income would decrease by $fill in the blank 3.
The following cost data for the year just ended pertain to Sentiments, Inc., a greeting cardmanufacturer:Direct material ..................................................................................................... $2,100,000Advertising expense............................................................................................. 99,000Depreciation on factory building ......................................................................... 115,000Direct labor: wages.............................................................................................. 485,000Cost of finished goods inventory at year-end ...................................................... 115,000Indirect labor: wages............................................................................................ 140,000Production supervisor’s salary............................................................................. 45,000Service department…
20. Andrew, marketing clerk for Shine Agency, recorded the following information for last year: Month Number of Customers Customer Service Costs January 356 $ 527,233 February 417 544,335 March 338 482,655 April 526 668,050 May 400 530,500 June 457 656,910 July 366 543,770 August 495 680,400 September 345 487,230 October 531 712,325 November 443 629,030 December 415 542,000 He would like to be able to estimate customer service costs using the number of customers as the basis for estimation. However, because he has never taken a course in managerial accounting, he does not know how to set up a cost equation. He has therefore approached you for help. Required: 1. Set up a cost equation for monthly customer service costs using the high–low method.