Tyra Toy Company incurred the following costs during 20x1: Direct Materials P 5,000,000 Direct Labor 3,500,000 Manufacturing Overhead Utilities (primarily electricity) 250,000 Depreciation Plant and Equipment 350,000 Insurance 260,000 Supervisory Salary 470,000 Property Taxes 330,000 Selling Cost: Advertising 315,000 Sales Commission 145,000 Administrative Costs: Salaries of top management 580,000 Office Supplies 70,000 Depreciation on Building and Equipment 140,000 The company sold all of its products manufactured during the year. Depreciation is on a straight-line basis. During 20x1, the company operated at about half of its capacity, due to a slowdown in the economy. Prospects for 20x2 are slightly better. The marketing manager, forecasts a 30 percent growth in sales over the 20x1 level. TOTAL VARIABLE COST in 20x2 amount to P

Tyra Toy Company incurred the following costs during 20x1: Direct Materials P 5,000,000 Direct Labor 3,500,000 Manufacturing Overhead Utilities (primarily electricity) 250,000 Depreciation Plant and Equipment 350,000 Insurance 260,000 Supervisory Salary 470,000 Property Taxes 330,000 Selling Cost: Advertising 315,000 Sales Commission 145,000 Administrative Costs: Salaries of top management 580,000 Office Supplies 70,000 Depreciation on Building and Equipment 140,000 The company sold all of its products manufactured during the year. Depreciation is on a straight-line basis. During 20x1, the company operated at about half of its capacity, due to a slowdown in the economy. Prospects for 20x2 are slightly better. The marketing manager, forecasts a 30 percent growth in sales over the 20x1 level. TOTAL VARIABLE COST in 20x2 amount to P

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 7RE

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Water Technology, Inc. incurred the following costs during 20x1. The company sold all of its products manufactured during the year. Direct material .......................................................................................$3,000,000Direct labor ................................................................................................2,200,000Manufacturing overhead:Utilities (primarily electricity) ..............................................................140,000Depreciation on plant and equipment ...........................................230,000Insurance ...................................................................................................160,000Supervisory salaries ...............................................................................300,000Property taxes .........................................................................................210,000Selling costs:Advertising…
Loring Company incurred the following costs last year: Direct materials$216,000Sales salaries$65,000Factory rent24,000Advertising37,000Direct labor120,000Depreciation on the headquarters building10,000Factory utilities6,300Salary of the corporate receptionist30,000Supervision in the factory50,000Other administrative costs175,000Indirect labor in the factory30,000Salary of the factory receptionist28,000Depreciation on factory equipment9,000Sales commissions27,000 Required: Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, $216,000. Product CostPeriod CostCostsDirect MaterialsDirect LaborManufacturing OverheadSelling ExpenseAdministrative ExpenseDirect materials$216,000 What was the total product cost for last year? What was the total period cost for last year? If 30,000 units were produced last year, what was the unit product cost?
Tyra Toy Company incurred the following costs during 20x1: Direct Materials ₱ 5,000,000 Direct Labor 3,500,000 Manufacturing Overhead Utilities (primarily electricity) 250,000 Depreciation Plant and Equipment 350,000 Insurance 260,000 Supervisory Salary 470,000 Property Taxes 330,000 Selling Cost: Advertising 315,000 Sales Commission 145,000 Administrative Costs: Salaries of top management 580,000 Office Supplies 70,000 Depreciation on Building and Equipment 140,000 The company sold all of its products manufactured during the year. Depreciation is on a straight-line basis. During 20x1, the company operated at about half of its capacity, due to a slowdown in the economy. Prospects for 20x2 are slightly better. The marketing manager, forecasts a 30 percent growth in sales over the 20x1 level.…
Tyra Toy Company incurred the following costs during 20x1: Direct Materials ₱ 5,000,000 Direct Labor     3,500,000 Manufacturing Overhead Utilities (primarily electricity)        250,000 Depreciation Plant and Equipment        350,000 Insurance        260,000 Supervisory Salary        470,000 Property Taxes        330,000 Selling Cost: Advertising        315,000 Sales Commission        145,000 Administrative Costs:     Salaries of top management        580,000 Office Supplies          70,000 Depreciation on Building and Equipment        140,000 The company sold all of its products manufactured during the year. Depreciation is on a straight-line basis. During 20x1, the company operated at about half of its capacity, due to a slowdown in the economy. Prospects for 20x2 are slightly better. The marketing manager, forecasts a 30 percent growth in sales over the 20x1 level.…
Roundhead Corporation’s 2021 manufacturing costs were as follows: Prime costs                                                              P 4,000,000 Depreciation of factory equipment                           600,000 Depreciation of factory building                                400,000 Salaries of janitor assigned in factory premises      120,000 Salesmen’s commission based on sales                    200,000 Depreciation for delivery van                                     150,000 How much of these costs should be considered product / manufacturing costs or inventoried for external reporting purposes? Group of answer choices P 5,470,000 P 5,120,000 P 4,120,000 P 4,000,000
Roundhead Corporation’s 2021 manufacturing costs were as follows: Prime costs                                                              P 4,000,000 Depreciation of factory equipment                           600,000 Depreciation of factory building                                400,000 Salaries of janitor assigned in factory premises      120,000 Salesmen’s commission based on sales                    200,000 Depreciation for delivery van                                     150,000 How much of these costs should be considered product / manufacturing costs or inventoried for external reporting purposes?
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Loring Company incurred the following costs last year:Direct materials $ 216,000Factory rent 24,000Direct labor 120,000Factory utilities 6,300Supervision in the factory 50,000Indirect labor in the factory 30,000Depreciation on factory equipment 9,000Sales commissions 27,000Sales salaries $ 65,000Advertising 37,000Depreciation on the headquartersbuilding 10,000Salary of the corporate receptionist 30,000Other administrative costs 175,000Salary of the factory receptionist 28,000Required:1. Classify each of the costs using the following table format. Be sure to total the amounts ineach 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?
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