Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: Cost of clay used in production $ 63,000 Wages paid to the workers who paint the figurines $ 80,000 Wages paid to the sales manager's secretary $ 32,000 Cost of junk mail advertising $ 49,000 What is the total of the direct costs above?
Q: Marin Company specializes in manufacturing a unique model of bicycle helmet. The model is well…
A: Direct material means the raw material directly used in production process. Direct labor cost means…
Q: A firm is a dog food producer. Currently, they have remaining inventories for sale with a total cost…
A: Cost accounting means the recording of different cost in different account and to find out the cost…
Q: Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes.…
A: The direct cost includes the cost of direct material, direct labor etc.
Q: Following is a list of various costs incurred in producing replacement automobile parts. With…
A: Variable Cost: The cost which is not fixed is called a variable cost. This cost is directly…
Q: JOJO Company is a metal- and woodcutting manufacturer, selling products to the home construction…
A: Cost of goods manufactured is a term used in managerial accounting that refers to a schedule that…
Q: Lucky Cow Dairy provided the following expense information for May: Assembly-line workers' wages…
A: Given information, Reconfiguring the assembly line=$125,700
Q: Kignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes.…
A: Direct cost refers to the expenses of doing business that can be straightforwardly applied to…
Q: Marin Company specializes in manufacturing a unique model of bicycle helmet. The model is well…
A: The question is related to the Cost Sheet. In cost accounting, product costs are defined as costs…
Q: Listed below are various costs related to a candy manufacturing company. Determine the amount of…
A: Product Cost: Product costs refer to the costs incurred by a business from manufacturing a product…
Q: Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, MT. For its…
A: Activity based costing: It is a method for allocating overhead cost to products based on consumption…
Q: Mighty Muffler, Inc., operates an automobile service facility that specializes in replacing mufflers…
A: It is pertinent to note that fixed costs are costs that remain constant irrespective of the level of…
Q: Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, MT. For its…
A: Compute allocation rate for each of the activities as shown below: Total activity cost of pools is…
Q: Keller Company, a manufacturer of rivets, uses absorption costing Keller’s manufacturing costs were…
A: 1. Direct Material and Labor: These expense are directly related to manufacturing process. 2.…
Q: Sheffield, Inc., manufactures clamps used in the overhead bin latches of several leading airplane…
A: Calculation of period cost , product cost , and manufacturing overhead are as follows:
Q: Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes.…
A: Direct labor: It is the cost of salaries and wages incurred directly to produce a product. This cost…
Q: Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods…
A: Activity-based costing is the process of costing the products or services where the overheads are…
Q: Piels Corporation produces a part that is used in the manufacture of one of its products. The costs…
A: Given the following information: Production units: 10,000 units Cost associated with the production…
Q: Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes.…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Hamad Corporation produces cricket bats for kids that it sells for $36 each. At capacity, the…
A: Direct materials are materials and supplies consumed during the manufacturing of a product and are…
Q: Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill…
A: The incremental Analysis approach is used by the manufacturing business to decide whether to accept…
Q: he Haven Machine Company makes 40,000 screws to be used in the production of its washing machines.…
A: In this question, we have to compute that the company should buy or make the product.
Q: Lucky Cow Dairy provided the following expense information for May: Assembly-line workers' wages…
A: Cost of distribution category includes the expenses incurred to deliver the product to the customer.…
Q: Determine the amount of desired profit from the production and sale of flat panel displays. 2.…
A: “Hey, since there are multiple questions posted, we will answer first three questions. If you want…
Q: Prior to install a JIT system, Buckner Company, a producer of automobile parts, used maintenance…
A: A predefined overhead rate is an allocation rate that is applied to cost items for a specified…
Q: Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods…
A: Profitability Report:- It is a report which helps in analyzing the company profit earned after…
Q: Kneller Co. manufactures and sells medals for winners of athletic and other events. Its…
A: Any customer order for goods or services that is not typically handled by a business is referred to…
Q: Alameda Manufacturing manufactures a variety of wooden picture frames using recycled wood from old…
A: Given the following information: Advertising: $24,000 Cost of hardware (hangers, decorations,…
Q: Kneller Co. manufactures and sells medals for winners of athletic and other events. Its…
A: A business’s main motive is to earn more profit.
Q: Following is a list of various costs incurred in producing replacement automobile parts. With…
A: Fixed cost: Cost that is fixed per period is called fixed cost. Fixed cost remains constant for…
Q: Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well…
A: Answer: Production costs are basically those expenses incurred by a corporation during the…
Q: Diamond Visual Entertainment Inc. recently began production of a new product, flat panel displays,…
A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…
Q: Flint Company is a leading manufacturer of sunglasses. One of Flint's products protects the eyes…
A: NOTE : NO ADDITIONAL FIXED COST TO BE INCURRED AS THE COMPANY IS HAVING EXCESS CAPACITY…
Q: Venus Creations sells window treatments (shades, blinds, and awnings) to both commercial and…
A: Note: Enter 15 instead of 0.15
Q: Diamond Visual Entertainment Inc. recently began production of a new product, flat panel displays,…
A: Manufacturing overhead: All the overhead that is incurred in making an item is called…
Q: Sturbridge Company manufactures fine furniture and grandfather clocks. Sturbridge has an excellent…
A: Indirect cost are those which cannot directly allocate to cost of production. The correct option and…
Q: Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods…
A: Net income is referred to the income earned by an organization or an individual proprietor after…
Q: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on…
A: A product cost is the cost which is used to manufacture the product. A Variable cost is the cost…
Q: Dahl Corporation has just built a machine to produce car doors. Dahl had to build this machine…
A: The correct answer is Option (c)
Q: Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes.…
A: Conversion costs means cost incurred to convert raw material into finished goods. It includes direct…
Q: Diamond Visual Entertainment Inc. recently began production of a new product, flat panel displays,…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Ginocera Inc. is a designer, manufacturer, and distributor of low-cost, high-quality stainless steel…
A: The question is based on the concept of Cost Accounting.
Q: The Interiors Company located in Dominica, manufactures executive desks. Selected costs associated…
A: Cost is the term which is defined as the monetary value of the expenditures for the labor, supplies,…
Q: Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes.…
A: Total product costs = Cost of clay used in production + Wages paid to the workers who paint the…
Q: The Clear Reception Antenna Company incurred the following costs while manufacturing its High Gain…
A: Solution.. Schedule of Cost of goods manufactured Beginning work in process inventory (a)…
Q: Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, MT. For its…
A: Activity rate: Activity rate is the rate that is estimated to allocate cost to the products based on…
Q: Listed below are costs found in various organizations.1. Property taxes, factory.2. Boxes used for…
A:
Q: Easton Company makes and sells scooters. Easton incurred the following costs in its most recent…
A: Relevant costs are the avoidable costs. These are incurred or considered only when some specific…
Q: Part U16 is used by McVean Corporation to make one of its products. A total of 13,000 units of this…
A: Relevant cost per unit of making the product = Direct materials + Direct labor + Variable…
Q: Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes.…
A: The total direct cost is the sum of all direct costs incurred in the manufacturing process. The…
Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year:
Cost of clay used in production | $ | 63,000 |
Wages paid to the workers who paint the figurines | $ | 80,000 |
Wages paid to the sales manager's secretary | $ | 32,000 |
Cost of junk mail advertising | $ | 49,000 |
What is the total of the direct costs above?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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)Ingles Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table tops are manufactured by Ingles, but the table legs are purchased from an outside supplier. The Assembly Department takes a manufactured table top and attaches the four purchased table legs. It takes 16 minutes of labor to assemble a table. The company follows a policy of producing enough tables to ensure that 40 percent of next months sales are in the finished goods inventory. Ingles also purchases sufficient materials to ensure that materials inventory is 60 percent of the following months scheduled production. Ingless sales budget in units for the next quarter is as follows: Ingless ending inventories in units for July 31 are as follows: Required: 1. Calculate the number of tables to be produced during August. 2. Disregarding your response to Requirement 1, assume the required production units for August and September are 2,100 and 1,900, respectively, and the July 31 materials inventory is 4,000 units. Compute the number of table legs to be purchased in August. 3. Assume that Ingles Corporation will produce 2,340 units in September. How many employees will be required for the Assembly Department in September? (Fractional employees are acceptable since employees can be hired on a part-time basis. Assume a 40-hour week and a 4-week month.) (CMA adapted)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)
- Otero Fibers, Inc., specializes in the manufacture of synthetic fibers that the company uses in many products such as blankets, coats, and uniforms for police and firefighters. Otero has been in business since 1985 and has been profitable every year since 1993. The company uses a standard cost system and applies overhead on the basis of direct labor hours. Otero has recently received a request to bid on the manufacture of 800,000 blankets scheduled for delivery to several military bases. The bid must be stated at full cost per unit plus a return on full cost of no more than 10 percent after income taxes. Full cost has been defined as including all variable costs of manufacturing the product, a reasonable amount of fixed overhead, and reasonable incremental administrative costs associated with the manufacture and sale of the product. The contractor has indicated that bids in excess of 30 per blanket are not likely to be considered. In order to prepare the bid for the 800,000 blankets, Andrea Lightner, cost accountant, has gathered the following information about the costs associated with the production of the blankets. Direct machine costs consist of items such as special lubricants, replacement of needles used in stitching, and maintenance costs. These costs are not included in the normal overhead rates. Otero recently developed a new blanket fiber at a cost of 750,000. In an effort to recover this cost, Otero has instituted a policy of adding a 0.50 fee to the cost of each blanket using the new fiber. To date, the company has recovered 125,000. Lightner knows that this fee does not fit within the definition of full cost, as it is not a cost of manufacturing the product. Required: 1. Calculate the minimum price per blanket that Otero Fibers could bid without reducing the companys operating income. 2. Using the full-cost criteria and the maximum allowable return specified, calculate Otero Fibers bid price per blanket. 3. Without prejudice to your answer to Requirement 2, assume that the price per blanket that Otero Fibers calculated using the cost-plus criteria specified is greater than the maximum bid of 30 per blanket allowed. Discuss the factors that Otero Fibers should consider before deciding whether or not to submit a bid at the maximum acceptable price of 30 per blanket. (CMA adapted)Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory; in other words, a cleaning is started and completed on the same day. Required: 1. Prepare a statement of services produced in good form. 2. What if HHH planned to purchase 30,000 of direct materials? Assume there would be no change in beginning and ending inventories of materials. Explain which line items on the statement of services produced would be affected and how (increase or decrease).Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. HHH expects to sell 15,000 cleanings at a price of 45 each next year. Total selling expense is projected at 22,000, and total administrative expense is projected at 53,000. Required: 1. Prepare an income statement in good form. 2. What if Jean and Tom increased the price to 50 per cleaning and no other information was affected? Explain which line items in the income statement would be affected and how.
- Jean and Tom Perritz own and manage Happy Home Helpers. Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. Required: 1. Prepare a statement of cost of services sold in good form. 2. How does this cost of services sold statement differ from the cost of goods sold statement for a manufacturing firm?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.Classify Costs Following is a list of various costs incurred in producing replacement automobile parts. With respect to the production and sale of these auto parts, classify each cost as either variable, fixed, or mixed. 1. Oil used in manufacturing equipment 2. Plastic 3. Property taxes, 165,000 per year on factory building and equipment 4. Salary of plant manager 5. Cost of labor for hourly workers 6. Packaging 7. Factory cleaning costs, 6,000 per month 8. Metal 9. Rent on warehouse, 10,000 per month plus 25 per square foot of storage used 10. Property insurance premiums, 3,600 per month plus 0.01 for each dollar of property over 1,200,000 11. Straight-line depreciation on the production equipment 12. Hourly wages of machine operators 13. Electricity costs, 0.20 per kilowatt-hour 14. Computer chip (purchased from a vendor) 15. Pension cost, 1.00 per employee hour on the job
- 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.Quality Clothing, Inc., produces skorts and jumper uniforms for schoolchildren. In the process of cutting out the cloth pieces for each product, a certain amount of scrap cloth is produced. Quality has been selling this cloth scrap to Jorges Scrap Warehouse for $3.25 per pound. Last year, the company sold 40,000 lb. of scrap, which would be enough to make 10,000 teddy bears that the management of Quality is now interested in producing. Their processes would need some reprogramming, particularly in the cutting and stitching processes, but it would require no additional worker training. However, new packaging would be needed. The total variable cost to produce the teddy bears $3.85. Fixed costs would increase by $95,000 per year for the lease of the packaging equipment and Quality estimates it could produce and sell 10,000 teddy bears per year. Finished teddy bears could be sold for $18.00 each. Should Quality continue to sell the scrap cloth or should Quality process the scrap into teddy bears to sell?Salley is developing material and labor standards for her company. She finds that it costs $0.55 per pound of material per widget. Each widget requires 6 pounds of material per widget. Salley is also working with the operations manager to determine what the standard labor cost is for a widget. Upon observation, Salley notes that it takes 3 hours in the assembly department and 1 hour in the finishing department to complete one widget. All employees are paid $10.50 per hour. A. What is the standard materials cost per unit for a widget? 8. What is the standard labor cost per unit for a widget?