Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 2, Problem 1PA
Ballentine Manufacturing produces and sells lawnmowers through a national dealership network. They purchase raw materials from a variety of suppliers, and all manufacturing and assembly work is performed at their plant outside of Kansas City. Missouri. They recorded these costs for the year ending December 31, 2017. Construct an income statement for Ballentine Manufacturing to reflect their net income for 2017.
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Dawson, Inc., is a privately held furniture manufacturer. For August 2017, Dawson had the following standards for one of its products, a wicker chair:
-- Standards per Chair --
Direct materials 3 square yards of input at $5.50 per square yard
Direct manufacturing labor 0.5 hour of input at $10.50 per hour
The following data were compiled regarding actual performance: actual output units (chairs) produced, 2,200; square yards of input purchased and used, 6,200; price per square yard, $5.70; direct manufacturing labor costs, $9,844; actual hours of input, 920; labor price per hour, $10.70.
Q. Show computations of price and efficiency variances for direct materials and direct…
Dawson, Inc., is a privately held furniture manufacturer. For August 2017, Dawson had the following standards for one of its products, a wicker chair:
-- Standards per Chair --
Direct materials 3 square yards of input at $5.50 per square yard
Direct manufacturing labor 0.5 hour of input at $10.50 per hour
The following data were compiled regarding actual performance: actual output units (chairs) produced, 2,200; square yards of input purchased and used, 6,200; price per square yard, $5.70; direct manufacturing labor costs, $9,844; actual hours of input, 920; labor price per hour, $10.70.
Q. Suppose 8,700 square yards of materials were purchased (at $5.70 per square yard), even though only 6,200 square yards were used.…
Gibson Manufacturing Co. expects to make 31,500 chairs during the 2017 accounting period. The company made 4,600 chairs in January. Materials and labor costs for January were $16,700 and $24,500, respectively. Gibson produced 1,500 chairs in February. Material and labor costs for February were $9,800 and $12,600, respectively. The company paid the $346,500 annual rental fee on its manufacturing facility on January 1, year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year.
Required
Assuming that Perez desires to sell its chairs for cost plus 25 percent of the cost, what price should be charged for the chairs produced in January and February? (Round intermediate calculations and final answers to 2 decimal places.) What is the price for January and February (Please be detailed)?
Chapter 2 Solutions
Principles of Accounting Volume 2
Ch. 2 - Which of the following is the primary source of...Ch. 2 - Which of the following is the primary source of...Ch. 2 - Which of the following is the primary source of...Ch. 2 - Which of the following represents the components...Ch. 2 - Which of the following represents the components...Ch. 2 - Which of the following represents the components...Ch. 2 - Conversion costs include all of the following...Ch. 2 - Which of the following is not considered a product...Ch. 2 - Fixed costs are expenses that...Ch. 2 - Variable costs are expenses that...
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