The related data of Pirena Company: Solvents and cleaners used by the custodians to clean the textbook printing presses P12,500 Depreciation on the automobiles used by sales representative P20,000 Fire insurance on factory building P18,200 Shipping costs on textbooks sold P 35,700 How much is the manufacturing overhead?

The related data of Pirena Company: Solvents and cleaners used by the custodians to clean the textbook printing presses P12,500 Depreciation on the automobiles used by sales representative P20,000 Fire insurance on factory building P18,200 Shipping costs on textbooks sold P 35,700 How much is the manufacturing overhead?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...

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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)
Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)
Classify costs Seymour Clothing Co. manufactures a variety of clothing types for distribution to several major retail chains. The following costs are incurred in the production and sale of blue jeans: Shipping boxes used to ship orders Consulting fee of 200,000 paid to industry specialist for marketing advice Straight-line depreciation on sewing machines Salesperson's salary, 10,000 plus 2% of the total sales Fabric Dye Thread Salary of designers Brass buttons Legal fees paid to attorneys in defense of the company in a patent infringement suit, 50,000 plus 87 per hour Insurance premiums on property, plant, and equipment, 70,000 per year plus 5 per 30,000 of insured value over 8,000,000 Rental costs of warehouse, 5,000 per month plus 4 per square foot of storage used Supplies Leather for patches identifying the brand on individual pieces of apparel Rent on plant equipment, 50,000 per year Salary of production vice president Janitorial services, 2,200 per month Wages of machine operators Electricity costs of 0.10 per kilowatt-hour Property taxes on property, plant, and equipment Instructions Classify the preceding costs as either fixed, variable, or mixed. Use the following tabular headings and place an X in the appropriate column. Identify each cost by letter in the cost column.
An examination of Buckhorn Fabricators records reveals the following transactions: a. On December 31, the physical inventory of raw material was 9,950 gallons. The book quantity, using the weighted average method, was 10,000 gal @ .52 per gal. b. Production returned to the storeroom materials that cost 775. c. Materials valued at 770 were charged to Factory Overhead (Repairs and Maintenance), but should have been charged to Work in Process. d. Defective material, purchased on account, was returned to the vendor. The material returned cost 234. e. Goods sold to a customer, on account, for 5,000 (cost 2,500) were returned because of a misunderstanding of the quantity ordered. The customer stated that the goods returned were in excess of the quantity needed. f. Materials requisitioned totaled 22,300, of which 2,100 represented supplies used. g. Materials purchased on account totaled 25,500. Freight on the materials purchased was 185. h. Direct materials returned to the storeroom amounted to 950. i. Scrap materials sent to the storeroom were valued at an estimated selling price of 685 and treated as a reduction in the cost of all jobs worked on during the period. j. Spoiled work sent to the storeroom valued at a sales price of 60 had production costs of 200 already charged to it. The cost of the spoilage is to be charged to the specific job worked on during the period. k. The scrap materials in (i) were sold for 685 cash. Required: Record the entries for each transaction.
For apparel manufacturer Abercrombie Fitch, Inc. (ANF), classify each of the following costs as either a product cost or a period cost: a. Advertising expenses b. Chief financial officers salary c. Depreciation on office equipment d. Depreciation on sewing machines e. Fabric used during production f. Factory janitorial supplies g. Factory supervisors salaries h. Property taxes on factory building and equipment i. Oil used to lubricate sewing machines j. Repairs and maintenance costs for sewing machines k. Research and development costs l. Sales commissions m. Salaries of distribution center personnel n. Salaries of production quality control supervisors o. Travel costs of media relations employees p. Utility costs for office building q. Wages of sewing machine operators
Shown below are a number of costs incurred last year at NUBD Co. a manufacturer of books: Solvents and cleaners used by the custodians to clean the textbook printing presses- 500 Depreciation on the automabiles used by sales representatives- 4,000 Fire insurance on factory building- 2,500 Delivery costs on textbooks sold- 1,700 What is the total of the manufacturing overhead costs above?
The related data of Jean Grey Company: Direct materials P85,000 Depreciation on factory equipment 12,500 Factory janitor’s salary 12,000 Direct labor 67,800 Utilities for factory 12,500 Selling expenses 28,000 Production supervisor’s salary 20,000 Administrative expenses 35,700 Rent expense - Head office 12,800 Rent expense - Factory 20,000 Depreciation on office equipment 8,500…
Caroline Company reports the following costs and expenses in May. Factory utilities $11,500 Depreciation on factory equipment $12,650 Depreciation on delivery truck $3,800 Indirect factory labor $48,900 Indirect materials $80,800 Direct materials used $137,600 Factory manager's salary $8,000 Direct labor $69,100 Sales salaries $46,400 Property taxes on factory building $2,500 Repairs to office equipment $1,300 Factory repairs $2,000 Advertising $18,000 Office supplies used $2,640 From the information above, determine the total amount of product costs.
Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include: Depreciation on sales office $ 9800 Depreciation on factory equipment 16,700 Factory supervisor salary 50,100 Sales commissions 23,700 Lubricants used in factory equipment 3600 Insurance costs for factory 21,400 Wages paid to maintenance workers 115,200 Fabric used to upholster furniture 10,400 Freight-in (on raw materials) 3200 Costs of delivery to customers 9300 Wages paid to assembly-line workers 115,700 Lumber used to build product 82,600 Utilities in factory 54,000 Utilities in sales office 26,300 Product costs for Country Furniture Company totaled Question 16 options: $448,300. $472,900. $489,200. $373,100.
The costs incurred by Treats Bakery Ltd. as part of its operations are listed below. Cost Items Amount $ Insurance on factory equipment 4,700 Wheat Flour and other key baking materials 55,800 Depreciation of computers used in the sales department 1,500 Bakers’ wages 38,600 Utility cost of the sales department 1,300 Rental for factory space 7,800 Depreciation on ovens and other factory equipment 4,800 Rental of space for the sales department 5,600 Salary of factory supervisor 17,000 Factory utility cost 6,900 You are required to calculate the: a) Prime cost: b) Conversion cost: c) Period cost: d) Product cost: Show all calculations. :)
The costs incurred by Treats Bakery Ltd. as part of its operations are listed below. Cost Items Amount $ Insurance on factory equipment 4,700 Wheat Flour and other key baking materials 55,800 Depreciation of computers used in the sales department 1,500 Bakers’ wages 38,600 Utility cost of the sales department 1,300 Rental for factory space 7,800 Depreciation on ovens and other factory equipment 4,800 Rental of space for the sales department 5,600 Salary of factory supervisor 17,000 Factory utility cost 6,900 You are required to calculate the Product cost: Show all calculations.
Based from the given data, answer the following questions. Show your computations. G Toy Shop manufactures children's plush toys and incurred the following during the process: (The following are within one month of production with 980 total manufactured plush toys). P 150,000 for materials such as cloth, pile textiles and stuffing materials P 10,000 for threads and accessories P 12,000 building rental P 45,000 salaries of 5 factory workers P 10,000 security guard salary P 5,500 depreciation of machines and equipment 10) What is the amount of Manufacturing Overhead Costs? a. P37,500 b. P30,000 c. P45,500 d. P22,000