Managerial Accounting - Ch 14 Part 2 Wiley
Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product $126,000 Advertising expense $48,300 Depreciation on plant 65,900 Property taxes on plant. 23,500 Property taxes on store 8,030 Delivery expense 30,200 Labor costs of assembly-line workers 115,200 Sales commissions 37,200 Factory supplies used 32,200 Salaries paid to sales clerks 55,400 Work in process inventory was $14,400 at January 1 and $17,400 at December 31. Finished goods inventory was $64,000 at January 1 and $45,900 at December 31.
Compute cost of goods sold Beginning Finished Goods $64,000 COGS mfd $359,800 LESS: Ending Finished Goods $45,900 ---------------------------------- COGS. $377,900
Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno's monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,400 Insurance on factory building. 2,390 Raw materials (plastics, polystyrene, etc.). 78,000 Utility costs for factory. 910 Supplies for general office. 390 Wages for assembly line workers. 63,400 Depreciation on office equipment. 830 Miscellaneous materials (glue, thread, etc.) 1,420 Factory manager's salary. 6,600 Property taxes on factory building. 470 Advertising for helmets. 14,400 Sales commissions 10,990 Depreciation on factory building 1,650
DIRECT MATERIALS: ----------------------- Raw Materials $78,000 ----------------------- Production Cost = $78,000
Knight Company reports the following costs and expenses in May. Factory utilities $16,200 Direct labor $73,000 Depreciation on factory equipment 14,350 Sales salaries 51,000 Depreciation on delivery trucks 4,300 Property taxes on factory building 2,800 Indirect factory labor 50,700 Repairs to office equipment 1,400 Indirect materials 82,800Factory repairs 3,040 Direct materials used 141,700 Advertising 16,800 Factory manager's salary 8,100 Office supplies used. 3,630
Determine the total amount of manufacturing overhead. Factory utilities $16,200 Depreciation on factory equipment 14,350 Indirect factory labor 50,700 Indirect materials 82,800 Factory manager's salary 8,100 Property taxes on factory building 2,800 Factory repairs 3,040 ----------------------------- $177,990
Wages of workers assembling laptop computers.
Direct Labor
Depreciation on the factory equipment.
Manufacturing Overhead
Production superintendents' salaries.
Manufacturing Overhead
Property taxes on the factory building.
Manufacturing Overhead
Salaries for the night security guards for the factory building.
Manufacturing Overhead
Soldering materials used on factory assembly lines.
Manufacturing Overhead
Knight Company reports the following costs and expenses in May. Factory utilities $17,000 Direct labor $70,400 Depreciation on factory equipment 13,550 Sales salaries 50,700 Depreciation on delivery trucks 4,300 Property taxes on factory building 3,200 Indirect factory labor 53,200 Repairs to office equipment 2,400 Indirect materials 85,600 Factory repairs 2,960 Direct materials used 137,700 Advertising 15,600 Factory manager's salary 8,700 Office supplies used 3,510 Determine the total amount of manufacturing overhead.
Manufacturing Overhead = $184,210 Manufacturing Overhead = Factory utilities + Depreciation on factory equipment + Indirect factory labor + Indirect materials + Factory manager's salary + Property taxes on factory building + Factory repairs 17,000 + 13,550 + 53,200 + 85,600 + 8,700 + 3,200 + 2,960 = $184,210
Compute the cost to produce one helmet.
$16.62 Here's how: PRODUCTION COSTS: ------------------------- Direct Materials $78,000 Direct Labor $63,400 Manufacturing Overhead $24,840 Total Production Costs = $166,240 -------------------------- PRODUCTION COST PER HELMET: $166,240 / 10,000 helmets = $16.62
Memory boards and chips used in assembling computers.
Direct Materials
Compute the cost to produce one audio system. Production cost per system $______________
$175.45 Here's how: PRODUCTION COSTS: ------------------------- Direct Materials $122,430 Direct Labor $133,560 Manufacturing Overhead $22,970 Total Production Costs = $278,960 -------------------------- PRODUCTION COST PER HELMET: $278,960 / 1,590 audio systems = $175.4465409
Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product $126,000 Advertising expense $48,300 Depreciation on plant 65,900 Property taxes on plant. 23,500 Property taxes on store 8,030 Delivery expense 30,200 Labor costs of assembly-line workers 115,200 Sales commissions 37,200 Factory supplies used 32,200 Salaries paid to sales clerks 55,400 Work in process inventory was $14,400 at January 1 and $17,400 at December 31. Finished goods inventory was $64,000 at January 1 and $45,900 at December 31.
Compute cost of goods manufactured. Materials used in product $126,000 Labor costs of assembly-line workers $115,200 Factory Overheads .....Depreciation on plant $62,900 .....Property taxes on plant $23,500 .....Factory supplies used $32,200 ADD: Work in Process $14,400 LESS: Work in Process $17,400 ----------------------------------- COGS mfd = $359,800
Bell Company, a manufacturer of audio systems, started its production in October 2017. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment factory. Raw materials cost for an audio system will total $77 per unit. Workers on the production lines are on average paid $14 per hour. An audio system usually takes 6 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,140 per month. Indirect materials cost $7 per system. A supervisor was hired to oversee production; her monthly salary is $3,780. Factory janitorial costs are $1,560 monthly. Advertising costs for the audio system will be $8,620 per month. The factory building depreciation expense is $6,960 per year. Property taxes on the factory building will be $9,360 per year. ------------------------------------------------------------------- Assuming that Bell manufactures, on average, 1,590 audio systems per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns.
DIRECT LABOR: ------------------ 1,590 x $14 x 6 hours Wages for workers $133,560 ------------------ Production Cost = $133,560
Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno's monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,400 Insurance on factory building. 2,390 Raw materials (plastics, polystyrene, etc.). 78,000 Utility costs for factory. 910 Supplies for general office. 390 Wages for assembly line workers. 63,400 Depreciation on office equipment. 830 Miscellaneous materials (glue, thread, etc.) 1,420 Factory manager's salary. 6,600 Property taxes on factory building. 470 Advertising for helmets. 14,400 Sales commissions 10,990 Depreciation on factory building 1,650
DIRECT LABOR: ------------------ Wages for assembly line workers $63,400 ------------------ Production Cost = $63,400
Bell Company, a manufacturer of audio systems, started its production in October 2017. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment factory. Raw materials cost for an audio system will total $77 per unit. Workers on the production lines are on average paid $14 per hour. An audio system usually takes 6 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,140 per month. Indirect materials cost $7 per system. A supervisor was hired to oversee production; her monthly salary is $3,780. Factory janitorial costs are $1,560 monthly. Advertising costs for the audio system will be $8,620 per month. The factory building depreciation expense is $6,960 per year. Property taxes on the factory building will be $9,360 per year. ------------------------------------------------------------------- Assuming that Bell manufactures, on average, 1,590 audio systems per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns.
DIRECT MATERIALS: ------------------ 1,590 x $77 Raw Materials $122,430 ------------------ Production Cost = $122,430
Knight Company reports the following costs and expenses in May. Factory utilities $16,200 Direct labor $73,000 Depreciation on factory equipment 14,350 Sales salaries 51,000 Depreciation on delivery trucks 4,300 Property taxes on factory building 2,800 Indirect factory labor 50,700 Repairs to office equipment 1,400 Indirect materials 82,800Factory repairs 3,040 Direct materials used 141,700 Advertising 16,800 Factory manager's salary 8,100 Office supplies used. 3,630
Determine the total amount of period costs. Depreciation on delivery trucks $4,300 Sales salaries 51,000 Repairs to office equipment 1,400 Advertising 16,800 Office supplies used 3,630 ________________________________________ Period costs = $77,130
Knight Company reports the following costs and expenses in May. Factory utilities $16,200 Direct labor $73,000 Depreciation on factory equipment 14,350 Sales salaries 51,000 Depreciation on delivery trucks 4,300 Property taxes on factory building 2,800 Indirect factory labor 50,700 Repairs to office equipment 1,400 Indirect materials 82,800Factory repairs 3,040 Direct materials used 141,700 Advertising 16,800 Factory manager's salary 8,100 Office supplies used. 3,630
Determine the total amount of product cost. Direct materials $141,700 Direct labor $73,000 Manufacturing overhead $177,990 ------------------ Product Cost = $392,690
Salaries for assembly-line quality control inspectors.
Direct Labor or Manufacturing Overhead
Electrical components used in assembling computers.
Direct Materials
Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno's monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,400 Insurance on factory building. 2,390 Raw materials (plastics, polystyrene, etc.). 78,000 Utility costs for factory. 910 Supplies for general office. 390 Wages for assembly line workers. 63,400 Depreciation on office equipment. 830 Miscellaneous materials (glue, thread, etc.) 1,420 Factory manager's salary. 6,600 Property taxes on factory building. 470 Advertising for helmets. 14,400 Sales commissions 10,990 Depreciation on factory building 1,650
MANUFACTURING OVERHEAD: ------------------------------------ Rent of Factory Equipment $11,400 Insurance on factory building. $2,390 Utility Costs for factory $910 Miscellaneous materials $1,420 Factory Manager's salary $6,600 Property Taxes on factory building. $470 Depreciation on factory building $1,650 ------------------------ Production Cost = $24,840
Bell Company, a manufacturer of audio systems, started its production in October 2017. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment factory. Raw materials cost for an audio system will total $77 per unit. Workers on the production lines are on average paid $14 per hour. An audio system usually takes 6 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,140 per month. Indirect materials cost $7 per system. A supervisor was hired to oversee production; her monthly salary is $3,780. Factory janitorial costs are $1,560 monthly. Advertising costs for the audio system will be $8,620 per month. The factory building depreciation expense is $6,960 per year. Property taxes on the factory building will be $9,360 per year. ------------------------------------------------------------------- Assuming that Bell manufactures, on average, 1,590 audio systems per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns.
MANUFACTURING OVERHEAD: ------------------------------------ Rent on Equipment $5,140 1,590 x $7 = $11,130 Indirect Materials $11,130 Factory Supervisor's salary $3,780 Janitorial Costs $1,560 $6,960 / 12 months = $580 Depreciation on factory building $580 $9,360 / 12 months = $780 Property taxes on factory building $780 ------------------------ Production Cost = $22,970
Bell Company, a manufacturer of audio systems, started its production in October 2017. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment factory. Raw materials cost for an audio system will total $77 per unit. Workers on the production lines are on average paid $14 per hour. An audio system usually takes 6 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,140 per month. Indirect materials cost $7 per system. A supervisor was hired to oversee production; her monthly salary is $3,780. Factory janitorial costs are $1,560 monthly. Advertising costs for the audio system will be $8,620 per month. The factory building depreciation expense is $6,960 per year. Property taxes on the factory building will be $9,360 per year. ------------------------------------------------------------------- Assuming that Bell manufactures, on average, 1,590 audio systems per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns.
PERIOD COSTS: ------------------ Advertising $8,620 ------------------- Production Cost $8,620
Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno's monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,400 Insurance on factory building. 2,390 Raw materials (plastics, polystyrene, etc.). 78,000 Utility costs for factory. 910 Supplies for general office. 390 Wages for assembly line workers. 63,400 Depreciation on office equipment. 830 Miscellaneous materials (glue, thread, etc.) 1,420 Factory manager's salary. 6,600 Property taxes on factory building. 470 Advertising for helmets. 14,400 Sales commissions 10,990 Depreciation on factory building 1,650
PERIOD COSTS: ------------------ Supplies for general office $390 Depreciation on office equipment. $830 Advertising for helmets $14,400 Sales Commissions $10,990 ------------------- Production Cost $26,610
Sales commissions paid to sell laptop computers.
Period Costs
Knight Company reports the following costs and expenses in May. Factory utilities $17,000 Direct labor $70,400 Depreciation on factory equipment 13,550 Sales salaries 50,700 Depreciation on delivery trucks 4,300 Property taxes on factory building 3,200 Indirect factory labor 53,200 Repairs to office equipment 2,400 Indirect materials 85,600 Factory repairs 2,960 Direct materials used 137,700 Advertising 15,600 Factory manager's salary 8,700 Office supplies used 3,510 Determine the total amount of period costs.
Period costs = $76,510 Period costs = Depreciation on delivery trucks + Sales salaries + Repairs to office equipment + Advertising + Office supplies used 4,300 + 50,700 + 2,400 + 15,600 + 3,510 = $76,510
Knight Company reports the following costs and expenses in May. Factory utilities $17,000 Direct labor $70,400 Depreciation on factory equipment 13,550 Sales salaries 50,700 Depreciation on delivery trucks 4,300 Property taxes on factory building 3,200 Indirect factory labor 53,200 Repairs to office equipment 2,400 Indirect materials 85,600 Factory repairs 2,960 Direct materials used 137,700 Advertising 15,600 Factory manager's salary 8,700 Office supplies used 3,510 Determine the total amount of product costs.
Product Costs = $392,310 Product costs = Direct materials + Direct labor + Manufacturing overhead 137,700 + 70,400 + 184,210 = $392,310