MANAGERIAL ACCT (LL) W/ ACCESS CODE >C
4th Edition
ISBN: 9781323478684
Author: Braun
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 2, Problem 2.33BE
Classify and calculate a manufacturer’s costs (Learning Objectives 2 & 4)
An airline manufacturer incurred the following costs last month (in thousands of dollars).
| a. | Airplane seats | $300 |
| b. | Production supervisors’ salaries | $110 |
| c. | $90 | |
| d. | Machine lubricants | $30 |
| e. | Factory janitors’ wages | $50 |
| f. | Assembly workers’ wages | $630 |
| g. | Property tax on corporate marketing offices | $20 |
| h. | Plant utilities | $140 |
| i. | Cost of warranty repairs | $230 |
| j. | Machine operators’ health insurance | $40 |
| k. | Depreciation on administrative offices | $100 |
| l. | Cost of designing new plant layout | $160 |
| m. | Jet engines | $1,400 |
Requirements
- 1. Assuming the cost object is an airplane, classify each cost as one of the following: direct material (DM), direct labor (DL), indirect labor (IL), indirect materials (IM), other manufacturing overhead (other MOH), or period cost. What is the total for each type of cost?
- 2. Calculate total manufacturing overhead costs.
- 3. Calculate total product costs.
- 4. Calculate total prime costs.
- 5. Calculate total conversion costs.
- 6. Calculate total period costs.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
E3-25A Analyze manufacturing overhead (Learning Objectives 3 & 5)
Smith Foundry in Columbus, Ohio, uses a predetermined manufacturing overhead rate to
allocate overhead to individual jobs based on the machine hours required. At the begin-
ning of the year, the company expected to incur the following:
Manufacturing overhead costs
Direct labor cost
Machine hours
$ 630,000
$1,650,000
90,000
********e**
At the end of the year, the company had actually incurred the following:
Direct labor cost
Depreciation on manufacturing plant and equipment
Property taxes on plant
Sales salaries ...
$1,230,000
$ 480,000
$ 19,500
$ 26,500
Delivery drivers' wages
Plant janitors' wages
17,000
%24
8,500
Machine hours
56,500 hours
Requirements
1. Compute Smith's predetermined manufacturing overhead rate.
2. How much manufacturing overhead was allocated to jobs during the year?
3. How much manufacturing overhead was incurred during the year? Is manufacturing
overhead underallocated or overallocated at the end…
Unity University
Final Exam for Management And Financial Accounting
Consider zagol manufacturing which is engaged in the manufacturing of product ABC. To produce one unit of the product the company incurs the following costs:
Direct material ______$5/kg
Direct labor_________$10/hour
Total Manufacturing overhead __________________$30000
The company produces a total of 10000 units per month. And the actual price the product is sold is around $24. Company XYZ offers to buy a total of 5000 units this month at the price of $ 17/unit. Would you accept the order if you are the manager? (assume 20% of the manufacturing overhead is variable cost).
Describe the basic financial statements , their purpose and their importance to various internal and external users. Clearly discuss which users are most interested in which financial statement and why.
Form question one above considering all the manufacturing costs are fixed calculate the Breakeven point both in unit and quantity using the…
A company manufactures skateboards. Compute the total amount of product costs from the follo
Cost item
a. Wheels, $15,000
b. Wooden boards, $22,000
c. Advertising costs, $5,000
d. Insurance on factory, $6,000
e. Factory equipment depreciation, $8,000
f. Assembly worker wages, $11,000
g. Salesperson salaries, $16,000
h. Office manager's salary, $7,000
i. Factory utilities, $3,000
Chapter 2 Solutions
MANAGERIAL ACCT (LL) W/ ACCESS CODE >C
Ch. 2 - (Learning Objective 1) Which of the following...Ch. 2 - (Learning Objective 2) Which of the following is...Ch. 2 - (Learning Objective 3) A cost that can be traced...Ch. 2 - (Learning Objective 4) Period costs are often...Ch. 2 - (Learning Objective 4) Conversion costs consist of...Ch. 2 - (Learning Objective 4) Which of the following is...Ch. 2 - Prob. 7QCCh. 2 - (Learning Objective 5) Which of the following...Ch. 2 - Prob. 9QCCh. 2 - Prob. 10QC
Ch. 2 - Short Exercises S2-1 Identify types of companies...Ch. 2 - Identify type of company from balance sheets...Ch. 2 - Classify costs by value chain function (Learning...Ch. 2 - Classify costs as direct or indirect (Learning...Ch. 2 - Prime costs Cost objects Product costs Assigned...Ch. 2 - Prob. 2.6SECh. 2 - Classify product costs and period costs (Learning...Ch. 2 - Classify a manufacturers costs (Learning Objective...Ch. 2 - Classify costs incurred by a dairy processing...Ch. 2 - Determine total manufacturing overhead (Learning...Ch. 2 - Prepare a retailers income statement (Learning...Ch. 2 - Compute Cost of Goods Sold for a merchandiser...Ch. 2 - Calculate direct materials used (Learning...Ch. 2 - Compute Cost of Goods Manufactured (Learning...Ch. 2 - Describe other cost terms (Learning Objectives 6...Ch. 2 - Classify costs as fixed or variable (Learning...Ch. 2 - Prob. 2.17SECh. 2 - Classify costs along the value chain for a...Ch. 2 - Classify costs along the value chain for a...Ch. 2 - Value chain and sustainability efforts (Learning...Ch. 2 - Prob. 2.21AECh. 2 - Construct an income statement using product and...Ch. 2 - Work backward to find missing amounts (Learning...Ch. 2 - Prepare a retailers income statement (Learning...Ch. 2 - Compute direct materials used and Cost of Goods...Ch. 2 - Compute Cost of Goods Manufactured and Cost of...Ch. 2 - Continues E2-26A: Prepare income statement...Ch. 2 - Determine whether information is relevant...Ch. 2 - Prob. 2.29AECh. 2 - Classify costs along the value chain for a...Ch. 2 - Classify costs along the value chain for a...Ch. 2 - Value chain and sustainability efforts (Learning...Ch. 2 - Classify and calculate a manufacturers costs...Ch. 2 - Construct an income statement using product and...Ch. 2 - Work backward to find missing amounts (Learning...Ch. 2 - Prob. 2.36BECh. 2 - Compute direct materials used and Cost of Goods...Ch. 2 - Compute Cost of Goods Manufactured and Cost of...Ch. 2 - Continues E2-38B: Prepare income statement...Ch. 2 - Determine whether information is relevant...Ch. 2 - Prob. 2.41BECh. 2 - Classify costs along the value chain (Learning...Ch. 2 - Determine ending inventory balances (Learning...Ch. 2 - Prepare income statements (Learning Objective 5)...Ch. 2 - Prob. 2.45APCh. 2 - Prob. 2.46APCh. 2 - Classify costs along the value chain (Learning...Ch. 2 - Determine ending inventory balances (Learning...Ch. 2 - Prepare income statements (Learning Objective 5)...Ch. 2 - Prob. 2.50BPCh. 2 - Prob. 2.51BPCh. 2 - Calculate operating income (Learning Objective 5)...Ch. 2 - Prob. 2.53ACT
Knowledge Booster
Learn more about
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
- The Casual Furniture Company manufactures outdoor furniture and incurred the following costs during the month of January: Timber Paint Glue Wages-assembly personnel $25 000 $5 000 $500 $20 000 Wages-factory supervisor $3 500 Factory cleaner's wages $2.000 Sales commissions $10 000 Administrative staff salaries $4.000 Depreciation-factory equipment $3.000 Depreciation-sales office equipment $1.000 Utilities, insurance-factory $6.000 Utilities, insurance-sales office $2.000 Advertising $8.000 Total costs $90 000 The product costs are: a. $90 000 O b. $65.000 O c. $63 000 Od. $83 000arrow_forwardInstruction: Solve the given problem. Show your solution. The following cost data were taken from the records of JGG manufacturing company: Depreciation expense - Equipment, 60% of which are incurred in the plant equipment 1,500 Depreciation expense in the retail outlet 500 Salaries of cashier in the retail outlet 3,000 Insurance premium paid in addition to the salary of the cashier 1,000 Salaries of delivery truck driver 1,500 Wages of production workers 28,000 Raw materials used 47,000 Operating supplies used in the production 1,000 Rent expense, 40% are paid for the retail outlet 2,000 Insurance paid for the factory building 500 Administrative salaries 2,000 Instruction: Compute for the following costs: 1. Direct Material costs 2. Direct Labor costs 3. Factory overhead costs 4. Prime Costs 5. Conversion costs 6. Total product costs 7. Total period costsarrow_forwardInstruction: Solve the given problem. Show your solution. The following cost data were taken from the records of JGG manufacturing company: Depreciation expense - Equipment, 60% of which are incurred in the plant equipment 1,500 Depreciation expense in the retail outlet 500 Salaries of cashier in the retail outlet 3,000 Insurance premium paid in addition to the salary of the cashier 1,000 Salaries of delivery truck driver 1,500 Wages of production workers 28,000 Raw materials used 47,000 Operating supplies used in the production 1,000 Rent expense, 40% are paid for the retail outlet 2,000 Insurance paid for the factory building 500 Administrative salaries 2,000 Instruction: Compute for the following costs: 4. Prime Costs 5. Conversion costs 6. Total product costs 7. Total period costsarrow_forward
- Bojeje Saved Manufacturing overhead was estimated to be $591,600 for the year along with 20,400 direct labor hours. Actual manufacturing overhead was $551820, and actual labor hours were 21,800. The amount of manufacturing overhead applied to production would be: g Enabled: Exam 1(Ch 1-4) 6 Multiple Choice $591,600. $474,150. $632,200. $551820.arrow_forwardUnity University Final Exam for Management And Financial Accounting Consider zagol manufacturing which is engaged in the manufacturing of product ABC. To produce one unit of the product the company incurs the following costs: Direct material ______$5/kg Direct labor_________$10/hour Total Manufacturing overhead __________________$30000 The company produces a total of 10000 units per month. And the actual price the product is sold is around $24. Company XYZ offers to buy a total of 5000 units this month at the price of $ 17/unit. Would you accept the order if you are the manager? (assume 20% of the manufacturing overhead is variable cost). Describe the basic financial statements , their purpose and their importance to various internal and external users. Clearly discuss which users are most interested in which financial statement and why. Form question one above considering all the manufacturing costs are fixed calculate the Breakeven point both in unit and quantity using the…arrow_forwardCurrent Attempt in Progress A greeting card company incurred the following costs associated with running its business last month: cardstock (thick paper), $10,000; ink, stickers, ribbons, and other card attachments, $7,700; rent on office space, $1,600; rent on factory space, $2,500; office salaries, $5,400; factory labor, $9,100; and advertising, $1,050. How much were its total product costs last month? Total product costs $ How much were its total period costs last month? Total period costs $arrow_forward
- As production manager, Mr. B is asked to track the manufacturing cost per unit on the factory floor. Total manufacturing costs were $98000 before considering factory maintenance salaries of $10000 and $54000 of factory depreciation. How much is the calculation of manufacturing cost per unit if 40o units had been produced in the current quarter? $270 $380 $245 $405arrow_forwardappear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost Cost per Cost per per Month Course $ 2,930 Student $ 270 $ 80 $ 1,220 $ 5,100 $ 2,400 $ 3,600 $ 40 $ 3 For example, administrative expenses should be $3,600 per month plus $40 per course plus $3 per student. The company's sales should average $890 per student. The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 62 students. The actual operating results for September appear below: Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Required: Actual $ 54,060 $ 11,000 $1,950, $ 17,130 $ 5,100 $ 2,540 $ 3,378 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September.arrow_forwardRefer to the following data: Direct material used $160 000 Marketing costs $ 5 000 Indirect labour $ 6 000 Depreciation on factory equipment $ 50 000 Wages of assembly line workers $ 30 000 Factory cleaners wages $ 25 000 Depreciation of computers used in a sales department $20 000 Oil consumed by sewing machines $ 5 000 Required: Determine each of the…arrow_forward
- Regional Safety Supplies (RSS) designs and manufactures masks for students. After production, themasks are placed into individual cases, before being transferred into Finished Goods. The accountingrecords of the business reflect the following data at June 30, 2021, for the manufacturing of masks forSugar Hill High School. INVENTORY 1/7/2020 30/6/2021 Raw Materials $230,000 $260,000 Factory Supplies $35,000 $24,000 Work in Progress $348,300 $203,300 Finished Goods 632,900 485,000 Other information: Sales Revenue $5,731,000 Factory Supplies Purchase 64,000 Direct Factory Labour 792,000 Raw Materials Purchased 560,000 Plant janitorial Service 37,000 Depreciation: Plant & Equipment 186,000 Total Utilities 481,250 Production Supervisor's Salary 450,000 Design Costs (school Logo) 26,000 Packaging Cases Cost 42,000 Total Insurance 2 168,000 Delivery Vehicle Drivers' Wages 181,500 Depreciation: Delivery Vehicle 53,290 Property Taxes3 240,000…arrow_forwardP16 • MANUFACTURING ACCOUNTING (MFG) LEARNING OBJECTIVES Prepare a schedule of cost of goods manufactured and sold. • Calculate changes in labor cost needed to achieve production goals. Alter the worksheet to include an income statement for a manufacturing firm. Create a chart showing the dollar amount of materials, labor, and overhead. PROBLEM DATA The following information is for Twisp Industries for the year ended December 31, 2011: Depreciation-equipment $ 180,000 Direct labor 2,568,000 Direct materials inventory, 1/1/11 366,000 Direct materials inventory, 12/31/11 372,000 Factory rent 305,640 Finished goods, 1/1/11 528,000 Finished goods, 12/31/11 690,000 Indirect labor 150,000 Indirect materials 105,000 Purchases of direct materials 2,580,720 Work in process, 1/1/11 121,200 Work in process, 12/31/11 114,660 REQUIREMENT 1. You have been asked to prepare a schedule of cost of goods manufactured and sold for the year just ended. Review the worksheet MFG that follows these…arrow_forwardBurnham Industries incurs the following costs for the month: Direct materials $2,000 Direct labor 2,800 Factory depreciation expense 3,600 Factory utilities expense 650 CEO's salary 4,100 A. What is the prime cost? $fill in the blank 1 B. What is the conversion cost? $fill in the blank 2arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY