Loose-leaf For Managerial Accounting
3rd Edition
ISBN: 9781259738579
Author: Stacey M Whitecotton Associate Professor, Robert Libby, Fred Phillips Associate Professor
Publisher: McGraw-Hill Education
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Question
Chapter 1, Problem 4.1GAP
To determine
Concept introduction:
Calculation of direct material cost, direct labor cost, manufacturing overhead cost from the product cost. Direct material cost relates to the material which use in production and direct labor cost means the labor which helps in making raw material into finished goods and other remaining expenses are manufacturing overhead.
To calculate:
Direct material cost, direct labor cost,
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Required:a) Calculate the raw material used by Personal Protective Gears & More. b) Calculate the factory supplies used by Personal Protective Gears & More. c) What is the total factory overhead costs incurred by Personal Protective Gears & More during theperiod? d) Determine the prime cost & conversion cost of the masks manufactured. e) Prepare a schedule of cost of goods manufactured for the year ended June 30, 2021, clearly showingtotal manufacturing cost & total manufacturing costs to account for. f) Prepare an income statement for personal Protective Gears & More for the year ended June 30, 2021.List the non-manufacturing overheads in order of size starting with the largest. g) What is the selling price per mask if Personal Protective Gears manufactured 1,850 masks for theperiod under review and uses a mark-up of 25% on cost? h) How does the format of the income statement for a manufacturing concern differ from the incomestatement of a merchandising entity?
Classifying Costs as Materials, Labor, or Factory Overhead
Indicate whether the following costs of Procter & Gamble (PG), a maker of consumer products, would be classified as direct materials cost, direct labor cost, or factory overhead cost:
Cost
Classification
a. Depreciation on assembly line equipment in the Mehoopany, Pennsylvania, paper products plant
b. Licensing payments for use of Disney characters on children products
c. Maintenance supplies
d. Packaging materials
e. Paper used in bath tissue
f. Plant manager salary for the Iowa City, Iowa, plant
g. Resins for body wash products
h. Salary of process engineers
i. Scents and fragrances used in making soaps and detergents
j. Wages of production line employees at the Pineville, Louisiana, soap and detergent plant
Distinguish between manufacturing & non-manufacturing overhead (product versus period costs) 2) Classify costs as prime costs or conversion costs 3) Prepare a statement of cost of goods manufactured, clearly showing total manufacturing costs & total manufacturing costs to account for. 4) Prepare an income statement for a manufacturing entity, clearly showing Cost of Goods Sold. 5) Explain the difference between the income statements of a merchandiser & a manufacturer
Pro-Leather Company is a manufacturer of leather cases for tablets. The following information pertains to operations during the 2020 calendar year.
Sales Revenue
$14,275,000
Direct Factory Labor
3,952,600
Indirect Factory Labor
1,232,250
Total Depreciation
1 400,000
Total Utilities
525,000
Distribution & Customer Service Costs
76,800
Insurance on Plant & Equipment
585,000
Property Taxes
90,000
Administrative wages & salaries
1076,000…
Chapter 1 Solutions
Loose-leaf For Managerial Accounting
Ch. 1 - What is the primary difference between financial...Ch. 1 - Prob. 2QCh. 1 - Why are traditional, GAAP-based financial...Ch. 1 - Prob. 4QCh. 1 - consider the area within a 3-mile radius of your...Ch. 1 - What are the three basic functions of management?Ch. 1 - How are the three basic management functions...Ch. 1 - What are ethics and why is ethical behavior...Ch. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - Prob. 12QCh. 1 - Why are businesses starting to incorporate...Ch. 1 - What factors does sustainability accounting...Ch. 1 - Think about your activities over the last week....Ch. 1 - Prob. 16QCh. 1 - Why is it important for managers to be able to...Ch. 1 - Prob. 18QCh. 1 - Prob. 19QCh. 1 - Explain the difference between relevant and...Ch. 1 - Prob. 21QCh. 1 - What are prime costs? Why have they decreased in...Ch. 1 - Prob. 23QCh. 1 - Why can't prime cost and conversion cost be added...Ch. 1 - Prob. 25QCh. 1 - Prob. 26QCh. 1 - Prob. 27QCh. 1 - Prob. 28QCh. 1 - Prob. 29QCh. 1 - Prob. 1MCCh. 1 - Prob. 2MCCh. 1 - Prob. 3MCCh. 1 - Prob. 4MCCh. 1 - Prob. 5MCCh. 1 - What is Garcia's total manufacturing cost? a....Ch. 1 - Prob. 7MCCh. 1 - What is Garcia's manufacturing overhead? a....Ch. 1 - Prob. 9MCCh. 1 - Which of the following would not be treated as a...Ch. 1 - MINI-EXERCISES Comparing Financial and Managerial...Ch. 1 - Prob. 4MECh. 1 - Prob. 5MECh. 1 - Prob. 6MECh. 1 - Prob. 8MECh. 1 - Prob. 9MECh. 1 - Prob. 10MECh. 1 - Identifying Direct and Indirect Costs for a...Ch. 1 - Prob. 12MECh. 1 - Identify sustainability issues affecting the...Ch. 1 - Classifying Costs Seth's Skateboard Company incurs...Ch. 1 - Calculation Costs Cotton White, Inc., makes...Ch. 1 - Prob. 7ECh. 1 - Prob. 8ECh. 1 - Classifying Costs Blockett Company makes...Ch. 1 - Prob. 10ECh. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Explaining Effects of Cost Misclassification Donna...Ch. 1 - Prob. 4.1GAPCh. 1 - Prob. 4.2GAPCh. 1 - Prob. 4.3GAPCh. 1 - Prob. 3.1GBPCh. 1 - Prob. 3.2GBPCh. 1 - Classifying Costs, Calculating Total Costs, and...Ch. 1 - Prob. 4.2GBPCh. 1 - Classifying Costs, Calculating Total Costs, and...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Indicate whether the following costs of Procter Gamble (PG), a maker of consumer products, would be classified as direct materials cost, direct labor cost, or factory overhead cost: a. Depreciation on assembly line equipment in the Mehoopany, Pennsylvania, paper products plant b. Licensing payments for use of Disney characters on children products c. Maintenance supplies d. Packaging materials e. Paper used in bath tissue f. Plant manager salary for the Iowa City, Iowa, plant g. Resins for body wash products h. Salary of process engineers i. Scents and fragrances used in making soaps and detergents j. Wages of production line employees at the Pineville, Louisiana, soap and detergent plantarrow_forwardClassifying costs The following is a manufacturing cost report of Marching Ants Inc. a. List the errors in the preceding report. b. Prepare a corrected report.arrow_forwardDistinguish between manufacturing & non-manufacturing overhead (product versus period costs) 2) Classify costs as prime costs or conversion costs 3) Prepare a statement of cost of goods manufactured, clearly showing total manufacturing costs & total manufacturing costs to account for. 4) Prepare an income statement for a manufacturing entity, clearly showing Cost of Goods Sold. 5) Explain the difference between the income statements of a merchandiser & a manufacturer Pro-Leather Company is a manufacturer of leather cases for tablets. The following information pertains to operations during the 2020 calendar year. Sales Revenue $14,275,000 Direct Factory Labor 3,952,600 Indirect Factory Labor 1,232,250 Total Depreciation 1 400,000 Total Utilities 525,000 Distribution & Customer Service Costs 76,800 Insurance on Plant & Equipment 585,000 Property Taxes 90,000 Administrative wages & salaries 1076,000…arrow_forward
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