Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 2CMA
To determine
Calculate the product costs and period cost for the last year, and identify the correct answer.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A review of Plunkett Corporation's accounting records for last year disclosed the following selected
Variable costs
Direct materials used
$ 56,000
Direct labor
$179,100
Manufacturing overhead
$154,000
Selling costs
$108,400
Fixed costs
Manufacturing overhead
$267,000
Selling costs
$121,000
Administrative costs
$235,900
In addition, the company suffered a $27,700 uninsured factory fire loss during the year. What were Plunkett's product costs and period costs for last year
In the course of your review of the accounts, you discover the following adjustments:
Depreciation – for the year was ₱50,000. 75% is chargeable to factory operation and 25% to general operations.
There is unpaid payroll of ₱2,800 (direct) and ₱500 for factory supervision.
Prepayments that expired are ₱8,000 where 50% is applicable to factory operation and 10% to general operation.
Inventories at Dec. 31, 2005 are:
Finished Goods
₱25,000
Work in Process
45,000
Direct Materials
25,000
Income tax is 20% of net income of 2005.
Requirement (using above details):
Prepare statement of cost of goods manufactured of 2005.
The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company.
Advertising expense
$
27,500
Direct labor
$
671,800
Depreciation expense—Office equipment
11,800
Income taxes expense
285,700
Depreciation expense—Selling equipment
10,900
Indirect labor
59,300
Depreciation expense—Factory equipment
33,500
Miscellaneous production costs
11,300
Factory supervision
140,300
Office salaries expense
66,000
Factory supplies used
8,300
Raw materials purchases
965,000
Factory utilities
34,000
Rent expense—Office space
28,000
Inventories
Rent expense—Selling space
26,400
Raw materials, December 31, 2018
153,900
Rent expense—Factory building
82,600
Raw materials, December 31, 2019
180,000
Maintenance expense—Factory equipment
39,900
Work in process, December 31, 2018
19,300
Sales
4,626,600
Work…
Chapter 1 Solutions
Managerial Accounting
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - What manufacturing cost term is used to describe...Ch. 1 - Distinguish between prime costs and conversion...Ch. 1 - What is the difference between a product cost and...Ch. 1 - Name the three inventory accounts for a...Ch. 1 - In what order should the three inventories of a...Ch. 1 - What are the three categories of manufacturing...Ch. 1 - How do the manufacturing costs incurred during a...Ch. 1 - How does the Cost of goods sold section of the...
Ch. 1 - Management process Three phases of the management...Ch. 1 - Prob. 2BECh. 1 - Prime and conversion costs Identify the following...Ch. 1 - Product and period costs Identify the following...Ch. 1 - Cost of goods sold, cost of goods manufactured...Ch. 1 - Jakes Cabins is a small motel chain with locations...Ch. 1 - Indicate whether each of the following costs of an...Ch. 1 - Indicate whether the following costs of Procter ...Ch. 1 - Prob. 3ECh. 1 - For apparel manufacturer Abercrombie Fitch, Inc....Ch. 1 - From the choices presented in parentheses, choose...Ch. 1 - Prob. 6ECh. 1 - Classifying costs In a service company A partial...Ch. 1 - Classifying costs The following is a manufacturing...Ch. 1 - Financial statements of a manufacturing firm The...Ch. 1 - Manufacturing company balance sheet Partial...Ch. 1 - Cost of direct materials used in production for a...Ch. 1 - Prob. 12ECh. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Income statement for a manufacturing company Two...Ch. 1 - Statement of cost of goods manufactured for a...Ch. 1 - Cost of goods sold, profit margin, and net income...Ch. 1 - Cost flow relationships The following information...Ch. 1 - The following is a list of costs that were...Ch. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of Foothills Medical Centers costs...Ch. 1 - Manufacturing income statement, statement of cost...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Prob. 1PBCh. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of The Grand Hotels costs follows:...Ch. 1 - Several items are omitted from the income...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Comfort Plus, Inc., has a hotel with 300 rooms in...Ch. 1 - Prob. 2MADCh. 1 - Comparing occupancy for two hotels Sunrise Suites...Ch. 1 - Prob. 4MADCh. 1 - Prob. 5MADCh. 1 - Prob. 1TIFCh. 1 - Communication Todd Johnson is the Vice President...Ch. 1 - For each of the following managers, describe how...Ch. 1 - The following situations describe scenarios that...Ch. 1 - Geek Chic Company provides computer repair...Ch. 1 - Which of the following items would not be...Ch. 1 - Prob. 2CMACh. 1 - A firm has 100,000 in direct materials costs,...Ch. 1 - In practice, items such as wood screws and glue...
Knowledge Booster
Similar questions
- Housley Paints Co. had a remaining debit balance of $25,000 in its under- and overapplied factory overhead account at year-end. The balance was deemed to be large and, therefore, should be closed to Work in Process, Finished Goods, and Cost of Goods Sold. The year-end balances of these accounts, before adjustment, showed the following: Determine the prorated amount of the underapplied factory overhead that is chargeable to each of the accounts. Prepare the journal entry to close the debit balance in Under-and Overapplied Factory Overhead.arrow_forwardThe following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company. Advertising expense $ 34,300 Direct labor $ 673,300 Depreciation expense—Office equipment 11,500 Income taxes expense 270,100 Depreciation expense—Selling equipment 10,300 Indirect labor 58,800 Depreciation expense—Factory equipment 34,800 Miscellaneous production costs 11,200 Factory supervision 109,600 Office salaries expense 61,000 Factory supplies used 8,900 Raw materials purchases 957,000 Factory utilities 36,000 Rent expense—Office space 24,000 Inventories Rent expense—Selling space 27,400 Raw materials, December 31, 2018 152,900 Rent expense—Factory building 82,600 Raw materials, December 31, 2019 182,000 Maintenance expense—Factory equipment 36,600 Work in process, December 31, 2018 19,400 Sales 4,525,600 Work…arrow_forwardA review of the accounting records of Finch Manufacturing indicated that the company incurred the following payroll costs during the month of March. Assume the company's financial statements are prepared in accordance with GAAP. 1. Salary of the company president—$32,300.2. Salary of the vice president of manufacturing—$16,700.3. Salary of the chief financial officer—$19,000.4. Salary of the vice president of marketing—$14,900.5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant—$189,000.6. Wages of production workers—$929,000.7. Salaries of administrative secretaries—$105,000.8. Salaries of engineers and other personnel responsible for maintaining production equipment—$183,000.9. Commissions paid to sales staff—$243,000. Requireda. What amount of payroll cost would be classified as SG&A expense?b. Assuming that Finch made 3,400 units of product and sold 3,060 of them during the month of March, determine the amount of payroll cost…arrow_forward
- Duke Company’s records show the following account balances at December 31, 2021: Sales revenue $ 17,600,000 Cost of goods sold 10,300,000 General and administrative expense 1,130,000 Selling expense 630,000 Interest expense 830,000 Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are material in amount. $430,000 in restructuring costs were incurred in connection with plant closings. Inventory costing $530,000 was written off as obsolete. Material losses of this type are considered to be unusual. It was discovered that depreciation expense for 2020 was understated by $63,000 due to a mathematical error. The company experienced a negative foreign currency translation adjustment of $330,000 and had an unrealized gain on debt securities of $310,000. Required:Prepare a single, continuous multiple-step statement of comprehensive income for 2021. The company’s effective tax rate on all…arrow_forwardThe following information were taken from the accounting records of BLUE Corporation for the year ended December 31, 2021: Decrease in finished goods inventory - 700,250; Increase in raw materials inventory - 368,000; Freight out - 520,000; Factory overhead - 6,000,000; Direct labor - 4,000,000: Raw materials purchased - 8,600,000; Freight in - 842,100. There was no work in process inventory at the beginning or at the end of the year WHAT IS THE COST OF GOODS SOLDarrow_forwardA review of the accounting records of Adams Manufacturing indicated that the company incurred the following payroll costs during the month of March. Assume the company's financial statements are prepared in accordance with GAAP. Salary of the company president—$32,100. Salary of the vice president of manufacturing—$16,500. Salary of the chief financial officer—$18,800. Salary of the vice president of marketing—$15,300. Salaries of middle managers (department heads, production supervisors) in manufacturing plant—$187,000. Wages of production workers—$933,000. Salaries of administrative secretaries—$106,000. Salaries of engineers and other personnel responsible for maintaining production equipment—$179,000. Commissions paid to sales staff—$247,000. What amount of payroll cost would be classified as SG&A expense? Assuming that Adams made 3,300 units of product and sold 2,805 of them during the month of March, determine the amount of payroll cost that would be…arrow_forward
- Duke Company’s records show the following account balances at December 31, 2021: Sales revenue $ 18,600,000 Cost of goods sold 10,800,000 General and administrative expense 1,180,000 Selling expense 680,000 Interest expense 880,000 Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are material in amount. $480,000 in restructuring costs were incurred in connection with plant closings. Inventory costing $580,000 was written off as obsolete. Material losses of this type are considered to be unusual. It was discovered that depreciation expense for 2020 was understated by $68,000 due to a mathematical error. The company experienced a negative foreign currency translation adjustment of $380,000 and had an unrealized gain on debt securities of $360,000. Required:Prepare a single, continuous multiple-step statement of comprehensive income for 2021. The company’s effective tax rate on all…arrow_forwardDuke Company’s records show the following account balances at December 31, 2021: Sales revenue $ 16,200,000 Cost of goods sold 9,600,000 General and administrative expense 1,060,000 Selling expense 560,000 Interest expense 760,000 Income tax expense has not yet been determined. The following events also occurred during 2021. All transactions are material in amount. $360,000 in restructuring costs were incurred in connection with plant closings. Inventory costing $460,000 was written off as obsolete. Material losses of this type are considered to be unusual. It was discovered that depreciation expense for 2020 was understated by $56,000 due to a mathematical error. The company experienced a negative foreign currency translation adjustment of $260,000 and had an unrealized gain on debt securities of $240,000. Required:Prepare a single, continuous multiple-step statement of comprehensive income for 2021. The company’s effective tax rate on all items…arrow_forwardA review of the accounting records of Munoz Manufacturing indicated that the company incurred the following payroll costs during the month of March. Assume the company's financial statements are prepared in accordance with GAAP. Salary of the company president—$32,600. Salary of the vice president of manufacturing—$16,300. Salary of the chief financial officer—$19,400. Salary of the vice president of marketing—$14,700. Salaries of middle managers (department heads, production supervisors) in manufacturing plant—$193,000. Wages of production workers—$947,000. Salaries of administrative secretaries—$111,000. Salaries of engineers and other personnel responsible for maintaining production equipment—$181,000. Commissions paid to sales staff—$248,000. Required What amount of payroll cost would be classified as SG&A expense? Assuming that Munoz made 4,200 units of product and sold 3,360 of them during the month of March, determine the amount of payroll cost that…arrow_forward
- Can I please get help with this question including an explaination of how to categorize?? A review of the accounting records of Baird Manufacturing indicated that the company incurred the following payroll costs during the month of March. Assume the company's financial statements are prepared in accordance with GAAP. Salary of the company president—$75,000. Salary of the vice president of manufacturing—$50,000. Salary of the chief financial officer—$42,000. Salary of the vice president of marketing—$40,000. Salaries of middle managers (department heads, production supervisors) in manufacturing plant—$147,000. Wages of production workers—$703,500. Salaries of administrative personnel—$60,000. Salaries of engineers and other personnel responsible for maintaining production equipment—$133,500. Commissions paid to sales staff—$146,000. Required What amount of payroll cost would be classified as SG&A (selling, general, and administrative) expense? Assuming that Baird made 5,000…arrow_forwardThe following transactions pertain to the supplies of Jupiter Firm for the current year: Supplies on hand at the beginning and at the end of the year were P5,150 and P6,730, respectively. Total supplies acquired this period amounted to #25,280. P3,810 worth of supplies were defective and returned to suppliers. How much of the supplies were actually consumed for the year?arrow_forwardThe following data summarizes in part the results of operations for 2021 of Diamond Company. Of the total cost of goods manufactured for 2021, 38% was for materials used, 30% for direct labor, and 32% for manufacturing overhead. During 2021, the company paid 90% of the materials purchased, leaving P293,000 of unpaid invoices for materials at year end.The company commenced 2021 operations with materials inventory of P421,000. All materials were purchased FOB company’s plant. The company disbursed P2,101,500 for direct labor during 2021. As of December 31, 2021, the accrued liability for direct labor amounted to P144,000, which was twice as much as last year’s accrual. The inventory of finished goods on December 31, 2021, was 10% of the cost of the units finished during the year, and goods in process on that date were one-half the finished goods inventory. This year’s finished goods inventory was 150% of last year. There are no in process last year. The manufacturing overhead, except for…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning