Discon Corporation manufactures a popular doll called Teardrops. Last year the company started with 10,300 dolls, produced 220,000 dolls, and ended the year with 8,300 dolls. Each doll was sold for $20. The actual unit cost for Teardrops is given below: Direct material Direct labour variable overhead Fixed overhead Total unit cost $ 2.30 0.80 2.80 7.10 $13.00 The only selling expenses were a commission of $2 per unit sold and advertising amounting to $353,000. Administrative expenses, all fixed, equalled $273,000. There were no beginning and ending work-in-process inventories. Required: 1. Prepare an income statement. Discon Corporation Income Statement For the Year Ended December 31, XXXX Selling and administrative expenses: $ a. Prime cost b. Conversion cost C. Variable cost 0 2. Calculate the following per unit costs: (Round your answers to 2 dec

Discon Corporation manufactures a popular doll called Teardrops. Last year the company started with 10,300 dolls, produced 220,000 dolls, and ended the year with 8,300 dolls. Each doll was sold for $20. The actual unit cost for Teardrops is given below: Direct material Direct labour variable overhead Fixed overhead Total unit cost $ 2.30 0.80 2.80 7.10 $13.00 The only selling expenses were a commission of $2 per unit sold and advertising amounting to $353,000. Administrative expenses, all fixed, equalled $273,000. There were no beginning and ending work-in-process inventories. Required: 1. Prepare an income statement. Discon Corporation Income Statement For the Year Ended December 31, XXXX Selling and administrative expenses: $ a. Prime cost b. Conversion cost C. Variable cost 0 2. Calculate the following per unit costs: (Round your answers to 2 dec

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
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Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
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Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 264,000 + 1.42X, where X equals number of composters. Last year, Natur-Gro produced 30,000 composters. Actual overhead costs for the year were as expected. Total overhead for per unit was a. 1.42 b. 8.80 c. 11.63 d. 10.22
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
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Five Card Draw manufactures and sells 10,000 units of Aces, which retails for $200, and 8,000 units of Kings, which retails for $170. The direct materials cost is $20 per unit of Aces and $15 per unit of Kings. The labor rate is $30 per hour, and Five Card Draw estimated 64000 direct labor hours. It takes 4 direct labor hours to manufacture Aces and 3 hours for Kings. The total estimated overhead is $128,000. Five Card Draw uses the traditional allocation method based on direct labor hours. A. How much is the gross profit per unit for Aces and Kings? B. What is the total gross profit for the year?