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Use the following data to compute total manufacturing costs for the month quizlet

13, we can calculate the following: CoGS in April = $313 (100 shirts x $3. Use the following data to compute total factory overhead costs for the month Sales commissions 10,800 Direct labor 39,600 Indirect materials 15,200 Factory manager salaries 7,200 Factory supplies 9,000 Indirect labor 6,300 Depreciation—office equipment 5,000 Direct materials 40,500 Corporate office salaries 42,500 Depreciation—factory North Shore Clothing Company provided the following manufacturing costs for the month of June. 13. 13/shirt) ($30,000 Fixed costs + $50,000 variable costs) ÷ 10,000 units = $8 cost per unit. ”. 62. Depreciation of factory equipment for the month was $5,400. Meanwhile, variable costs (VC) increase as quantity rises. Standard cost per pound of material: $6 May 23, 2010 · The costs to manufacture and market the bicycles at the company's volume of 2,000 units per month are shown in the following table: Unit manufacturing costs Variable costs $ 240 Fixed overhead 120 Total unit manufacturing costs $ 360 Unit nonmanufacturing costs Variable 60 Fixed 140 Total unit nonmanufacturing costs 200 Total unit costs $ 560 The company has the capacity to produce 2,000 units per month and always operates at full capacity. At this level of activity, variable costs are 50% of total unit costs. Selling and administrative costs were $2,100. To calculate total cost per unit, the materials cost per unit is added to the conversion cost per unit. Variable overheads 1 hour 30 minutes @ Rs. You can also add a function from the total row drop-down. Aug 24, 2010 · The beginning inventory consisted of the following costs: materials, $11,000 and conversion cost, $5,100. According to the activity-based costing system, what is the total cost of serving each of the following parties of diners? a. If total manufacturing costs during March were $88,000, the manufacturing overhead was: A) $24,286 B) $71,000 C) $63,714 D) $7,286 Answer: C Level: Hard LO: 1 Garrison, Managerial Accounting, 12th Edition 31 27. $9,240. Use the following information to answer questions 5 and 6: The Tingey Company has 500 obsolete microcomputers that are carried in inventory at a total cost of $720,000. Apr 25, 2014 · Determine the total amount of (a) delivery service (product) costs and (b) period costs. Total cost (TC) is made up of two parts: fixed cost and variable cost. Under “Input X Range,” enter the production data, including the heading. Use the following data to determine the cost of goods manufactured. Total variable costs when four units are produced is $710 since 840-130=710. C. (b) Assuming that the company operates a standard cost system using the following standards per finished unit: Direct materials £20 Conversion cost £23 Prepare a performance report for the month of March showing the total variances only for current performance. variable cost per unit will increase. Question-7. Work-in-process inventory, ending balance 126,300. Direct Method of Allocation When divided by the 1,000 units produced, this sum total of $22,000 of costs results in a unit product cost of $22/each. Direct labor, direct materials and manufacturing overhead comprise a company's product costs. Sales Commissions 12,800 Direct Labor 41,600 Indirect Materials 17,200 Factory Manager Salaries 9,200 Factory Supplies 11,000 Indirect Labor 8,300 Depreciation—office Equipment 7,000 Direct Materials 42,500 Corporate Office Salaries 44,500 Depreciation—factory Equipment 9,500 Use the following data to compute total manufacturing costs for the month. $470,000. Run a regression on the data in Excel by following these steps: Click on “Data. 2. The unit cost to manufacturing one unit of S1798 is presented below. Manufacturing overhead costs for the entire factory were incurred, $626,000. Actual manufacturing overhead incurred during the month was $57,000. Variable cost is the sum of all the individual marginal costs. Let us prepare a process cost sheet under weighted average method using the following data for Company ABC's packaging department for the month of December 2013. However, the company is not sure whether the order is a profitable proposition. If 10,500 units are manufactured next month and the cost behavior patterns remain unchanged the: A. As the basis for contract adjustment. docx from FMGT 1116 at Langara College. A manufacturing company accumulates the following data on fixed overhead:. 6 or 60 cents of overhead for every dollar of direct costs. Raw QUESTION 35 Use the following data to compute total manufacturing costs for the month: Sales commissione Direct labor Indirect materials Factory manager salaries Factory suPplies Indirect labor Depreciation-office equipment Direct materials $10, 800 39, 600 15,200 7,200 9,000 6,300 5,000 40,500 42,500 7,500 Corporate oftice salaries Depreciation-factory equipnent $141,100. Estimate the maintenance costs if expected production for the next month is 20,000 units. Sales commissions 10,800 Direct labor 39,600 Indirect materials 15,200 Factory manager salaries 7,200 Factory supplies 9,000 Indirect labor 6,300 Depreciation—office equipment 5,000 Direct materials 40,500 Corporate office salaries 42,500 Depreciation—factory equipment 7,500: Use the following data to compute total manufacturing costs for the month: Sales commissions Direct labor Indirect materials Factory manager salaries Factory supplies Indirect labor Depreciation-office equipment Direct materials Corporate office salaries Depreciation-factory equipment $11,800 40,600 16,200 8,200 10,000 7,300 6,000 41,500 43,500 Answer to Use the following data to compute total manufacturing costs for the month. Unit costs are needed to: Compute the cost of goods transferred out of the process. B. b. Data pertaining to a company's joint production for the current period follows: 4. 6 million more than the cost of goods sold expense. Write a report recommending that Monroe accept or reject Cahn’s offer. Use the following data to compute total manufacturing costs for the month: Direct labor $40,700 + Indirect materials $16,300 + Factory manager salaries $8,300 + Factory supplies $10,100 + Indirect labor $7,400 + Direct materials $41,600 + Depreciation on factory equipment $8,600 = $133,000. ) Managerial Accounting Midterm 1. . ATC = TC/Q). The unit product cost of the company is computed as follows: Absorption Costing: $5 + $4 + $1 + $4 * = $14. The predetermined overhead rate ($18. ex02. Oct 23, 2018 · Estimated Expected Activity Overhead Cost Xtreme Pathfinder Total $ 783,600 40,000 80,000 120,000 495,000 200 100 300 602,400 99,000 NA NA NA $1,980,000 Other . Dec 08, 2016 · Flagstaff Company has budgeted production units for July of 7,700 units. Actual overhead amounted to $325,000 with actual direct labor-hours totaling 110,000 for the month. Work-in-process inventory, beginning balance $132,425. $83,000. Oct 01, 2016 · During March, a firm expects to its total sales to be $160,000, its total variable costs to be $95,000, and its total fixed costs to be $25,000. Oct 04, 2012 · Montreal Manufacturing Inc. C) $202,500. For a lamp manufacturing company, the cost of the insurance on its vehicles that deliver lamps to customers is best described as a: A. Gross profit for 2017 = $229,234 – $141,048. Compute the total budgeted overhead to be reported on the factory overhead budget for the month. Total cost = $1,457 + (0. Indicate whether each of the following costs associated with production would be classified as direct materials, direct labor, or manufacturing overhead. During the period, the company incurred actual manufacturing overhead cost of $52,000 and $71,000 of direct labor cost. Required: The Filtering Department started the current month with beginning goods in process inventory of $55,000. Questions 1 to 20: Select the best answer to each question. 70 for conversion costs. SO 3 Setting Standard Costs—a Difficult Task Materials per unit: 1. Direct labor 41,600 . Sales commissions $11700 Direct labor 40500 21 Jan 2019 For this situation, the calculation of total manufacturing cost is as follows: In this case, use the following steps (assuming that standard costing  Compute the total direct materials variance. Determine the cost of goods sold using absorption costing. Summary Definition Define Total Manufacturing Costs: TMC is the sum of all production costs incurred during a fiscal period. total cost per unit will decrease. E. c. PPI data are commonly used in adjusting purchase and sales contracts. Prepare journal entries to record the following transactions during the month of June. 001. period cost. 1 Answer to 1. $490,000. During the month, the company purchased and used $10,800 of direct materials, used 2,000 machine-hours, and incurred $19,200 of direct labor costs. Raw materials were issued for use in production. We compute this amount by subtracting cost of goods sold from the cost of goods available: Below is the completed partial income statement with the estimated amount of ending inventory at $26,200. Therefore, the average cost per diner was $16. 00 per machine-hour; a total of 5,000 machine-hours were recorded for the year. Sales commissions 10,8 Direct labor 39,6 Indirect materials 15,2 Factory manager salaries 7,2 Factory supplies 9,0 Indirect labor 6,3 Depreciation—office equipment 5,0 Direct materials 40,5 Corporate office salaries 42,5 Depreciation—factory equipment 7,5 a. Graph marginal cost and average total cost and average variable cost. Determine the cost of ending finished goods inventory using absorption costing. $84,800. Troy Instruments uses ten units of Part Number S1798 each month in the production of scientific equipment. illustrated by the following example relating to a firm: Example 1 . Use the following data to compute total factory overhead costs for the month. However, using absorption costing, the entire $40,000 is expensed because all 10,000 units produced were sold; an additional $4,000 related to the 1,000 units produced last month and pulled from inventory this month is also expensed. The contribution margin for March is: $65,000. This free GDP calculator computes GDP using both the expenditure approach as well as manufacturing, energy, construction, the service sector, and the government. The adjusting journal entry needed to clear the balance to zero will include a: debit to Cost of Goods Sold $3,950 and credit to manufacturing overhead $3,950. Material used, direct labor, and manufacturing overhead at the time incurred are not expenses; rather Practice Questions and Answers from Lesson III-1: Inputs and Costs of his workers $80 per day. Raw materials inventory, January 1 $30,000 Raw materials inventory, December 31 $60,000 Work in process, January 1 $27,000 Work in process, December 31 $18,000 Finished goods, January 1 $60,000 Finished goods, December 31 $48,000 However, the question does not place restrictions on the unit variable costs. During the month, the company purchased an additional $38,000 of raw materials. These costs must be included in the determination of product unit costs. ) Compute the unit cost to manufacture the additional units of Part J. Total materials variance: $14,400 unfavorable. To compute the direct labor price variance, subtract the actual hours of direct labor at standard rate ($43,200) from the actual cost of direct labor ($46,800) Calculate the total amount of the costs needing assignment. $4,100; $ 0. Compute the fixed cost per month? Fixed cost = Total cost – (Variable rate x appointment) Fixed cost = $2,790 – (0. Purpose of the Manufacturing Statement. Manufacturing overhead for the month was underapplied by $3,000. The following is the budget of a manufacturing enterprise that produces only one type of product: Total Budgeted production 1 000 units . Question: Predetermined Overhead Rate? Overhead Applied? Use the following data to compute total manufacturing costs for the month: sales commissions $ 12,000 direct labor 40,800 indirect materials 16,400 factory manager salaries 8,400 factory supplies 10,200 indirect labor 7,500 depreciation—office equipment 6,200 direct materials 41,700 corporate office salaries 43,700 depreciation—factory equipment 8,700 Oct 01, 2016 · Compute the cost per unit using absorption costing. The following cost data relate to the manufacturing activities of the Kanaba Company last year: The company uses a predetermined overhead rate to apply manufacturing overhead cost to production. $144,700. Select a cell in a table. Additional manufacturing overhead costs of $143,000 were incurred and paid. Answer to: Use the following data to compute total factory overhead costs for the month: Sales commissions $10,800 Direct labor 39,600 Indirect View Homework Help - Practice 10, 11, 12 solution. Sales commissions $11,700 Direct labor 40,500 Use The Following Data To Compute Total Manufacturing Costs For The Month. Her total units available for sale over the period is 150 shirts. His fixed cost is $100 per day. Knowing the fixed costs and the variable cost per unit we can estimate the total costs for the planned production level by using the formula below: T = F + V x N, where T is the total cost, F is the fixed cost, V is the variable cost per unit, and N is the number of units to be produced. Direct materials $ 4,000 Materials handling (10% of direct materials cost) 400 The following monthly budgeted data are available for a wholesale company: Product L Product Z Product C Sales $400,000 $200,000 $800,000 Variable expenses 240,000 140,000 640,000 Contribution margin $160,000 $ 60,000 $160,000 Budgeted net operating income for the month is $130,000. Identify fixed inputs and variable inputs. Paid for the packing expenses required in the month of September amounting $ 20,000; Other direct manufacturing overhead for the month amounts to $ 100,000 Use the four steps of the high-low method to estimate total fixed costs per month, and the variable cost per surgery. Determine the value of the ending inventory. (Credit Accounts Payable and use a single Manufacturing Overhead control account for the entire factory. Three methods can be used to allocate support department costs: the direct, sequential, and reciprocal methods. g. Sales revenue ($151 x 2,210) $333,710 Jan 26, 2015 · Pierce Company had the following costs: Units produced 500 units Direct materials 25 per unit Direct labor 45 per unit Variable manufacturing overhead 15 per unit Fixed manufacturing overhead 5,000 per year Variable selling and administrative costs 30 per unit Fixed selling and administrative costs 3,200 per year Calculate the unit production cost using absorption costing and variable costing. Production: 9,000 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs. has the following cost and production data for the month of April. Within these ranges, the total fixed costs do not change in total. $27,240. Indirect materials 17,200 Exam: 061400RR - Cost Concepts and Types of Costing When you have completed your exam and reviewed your answers, click Submit Exam. 50 per unit and fixed costs of $5,000 per month. Technically, there is a difference between a manufacturing cost and a manufac‑ turing expense. Nov 07, 2019 · You must keep track of the cost of each shipment or the total manufacturing cost of each product you add to inventory. Click on “Data Analysis” and then “Regression;” then click on “OK. differential (incremental) cost of a lamp. If these microcomputers are upgraded at a total cost of $100,000, they can be sold for a total of $160,000. Jan 31, 2019 · For example, say that the average cookie package includes $1 of direct materials cost, $2 of direct labor cost, $3 of manufacturing overhead cost and a tub of dough makes 20 cookies. 33. The company currently has received an order for 1,000,000 mobile covers at a total contract price of $350,000. The company has provided the following data: The company’s fixed manufacturing overhead per unit was constant at $560 for all three years. For example, a company wants to allocate electricity costs for producing two products. Using the total cost of a product to calculate expenses gives you a more accurate picture of profitability. (a) Determine the contribution margin in dollars, per unit, and as a ratio. 10. $24,440. B) $146,100. Under “Input Y Range,” enter the range for the total cost data, including the heading. for a straight-line model relating selling price y to manufacturing cost x for a. $540,000. Use the five steps of the scattergraph method to estimate total fixed costs per month, and the variable cost per surgery. May 23, 2010 · The costs to manufacture and market the bicycles at the company's volume of 2,000 units per month are shown in the following table: Unit manufacturing costs Variable costs $ 240 Fixed overhead 120 Total unit manufacturing costs $ 360 Unit nonmanufacturing costs Variable 60 Fixed 140 Total unit nonmanufacturing costs 200 Total unit costs $ 560 Feb 11, 2012 · Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $75,000 and the total of the credits to the account was $57,000. $59,700. Mar 22, 2019 · Conversion Costs = Direct Labor + Manufacturing Overheads Since total manufacturing costs has three components: direct material, direct labor and manufacturing overheads, conversion costs may also be calculated using the following formula: Conversion Costs = Total Manufacturing Costs – Direct Material. The costs added during the month consisted of: materials, $52,000; and conversion cost, $32,800. Direct materials cost+Direct labor cost +Packaging costs = Total variable costs $242,200 Use the following data to compute total manufacturing costs for the month. The cost per unit is: ($30,000 Fixed costs + $25,000 variable costs) ÷ 5,000 units = $11/unit. Wings, breading, and sauce $4,900 Direct labor (Variable) 3,500 Rent 1,100 Depreciation 900 Other fixed costs 400 Each wing sells for $0. (i) Prepare a Production Budget for 1987 by quarters showing the number of units to be produced and the total costs of direct material, direct labour, variable overheads and fixed overheads. $58,300. The cost of his other variable inputs is $0. Direct materials costs 350,080. The manufacturing cost statement is a report showing the various costs involved when manufacturing finished goods. WIP 17,000 units Started in production 102,000 units Completed production 91,000 units Ending WIP 28,000 units The beginning inventory was 60% complete for conversion costs. The following cost data represents average cost per unit for 15,000 units of production. Add the total cost of materials purchases in the period to the cost of beginning inventory, and subtract the cost of ending inventory. Material price variance: $4,800 unfavorable. Direct materials is a variable cost. The cost per equivalent unit was computed to be $3. 25 hours at $13 per hour. Finally, we can calculate the average total cost by dividing total costs by total quantity (i. Use the following data to compute total manufacturing costs for the month. 43 x 2,500) = $2,532. The remainder of the total annual manufacturing costs is recorded as an increase in the company’s inventory asset account, to recognize that 10,000 units manufactured this year are awaiting sale in the future. Equivalent units of production are 25,000 for materials and 20,000 for conversion costs. Direct labor costs 365,225 Oct 24, 2011 · Department D E K Direct materials used $140,000 $126,000 $78,000 Direct labor costs $120,000 $110,000 $37,500 Manufacturing overhead incurred $89,000 $124,000 $74,000 Direct labor hours 8,000 11,000 3,500 Machine hours 34,000 45,000 10,400 Compute the predetermined overhead rate for each department Compute the total manufacturing costs assigned When the cost of production summary is completed, the total costs to be accounted for should be equal to the total production costs accounted for. The fixed costs equal $14,000. Manufacturing overhead for the month was underapplied by $18,000. The total conversion costs are divided by 400 to calculate the conversion costs per unit. Variable factory overhead is $1. Instructions Prepare a production cost report. (Note: include overtime premiums as a part of direct labor. The total cost of the units completed and transferred out was: A) $195,540. That is, each unit in each process receives a similar share of manufacturing costs. Azure · AppSource · Automotive · Government · Healthcare · Manufacturing · Financial services · Retail. (Round your answers to 2 decimal places. Large rectangular sheets of aluminum are purchased Using the information from the computer printout, develop a cost function that can be used to estimate maintenance costs at different volume levels. Sales Commissions 10,800 Direct Labor 39,600 Indirect Materials 15,200 Factory Manager Salaries 7,200 Factory Supplies 9,000 Indirect Labor 6,300 Depreciation—office Equipment 5,000 Direct Materials 40,500 Corporate Office Salaries 42,500 Depreciation—factory Equipment Question: Use The Following Data To Compute Total Factory Overhead Costs For The Month. Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $75,000. The following data are for the month of April: Actual cost of direct material purchased and used: $62,400. By using the above data, we will first calculate the gross profit of Apple Inc. Given the following data for Glennon Company, compute (A) total manufacturing costs and (B) costs of The Sanding Department of Richards Furniture Company has the following production and manufacturing cost data for March 2014, the first month of operation. All of the jobs in progress at the end of the month were completed and shipped to customers. Estimated direct labor cost and total manufacturing overhead to be $60,000 and $45,000 respectively. $125,300 $45,200. 00 per direct labor hour. Assuming that the cost of goods manufactured is $2,760,000 compute the cost of goods sold using the following information. Step 2: Next, calculate all the administrative costs and general costs which can’t be May 25, 2016 · The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Total actual manufacturing overhead costs incurred $ Budgeted fixed factory overhead is $18,000, which includes $2,800 of factory equipment depreciation. From the above information, calculate North Shore's total variable costs. The Dresden Company uses standard costing for the single product the company makes and sells. To break it down, it is comprised of three key areas: Direct Materials. e. Budgeted direct labour cost N$20 000 The following data apply to questions 4 and 5. Manufacturing overhead costs of $152,000 were applied to jobs using the company’s predetermined overhead rate. Required: (a. 43 x 3,100) = $1,457 3/ The cost formula. When a company has units that are started and completed during a period and has an ending inventory of units in process, most often the weighted average method is used to calculate equivalent units. For example, constant-dollar gross domestic product data are estimated using deflators based on PPI data. The manufacturing cycle efficiency was therefore only 0. 5 pounds at $4 per pound. Instructions Compute the unit costs for materials and conversion costs. Olds Inc. Beginning WIP 17,500 units Started in production 105,000 Completed production 90,400 Ending WIP 32,100 The beginning inventory was 60% complete for conversion costs. The cost of goods manufactured amount is transferred to the finished goods inventory account during the period and is used in calculating cost of goods sold on the income statement. In the following month, ABC produces 5,000 units at a variable cost of $25,000 and the same fixed cost of $30,000. Using Exhibit 7-11 as a guide, compute the product margins for the Xtreme and the Path- finder products under the activity-based costing system. Video · Use slicers to filter data. Variable Costing: $5 + $4 + $1 = $10 Oct 01, 2017 · A total of 30,000 machine-hours were recorded for October. ) d. Fixed cost (FC) is fixed and constant just as the name suggests. $120,100. The manufacturing costs are the costs directly associated with production—in this case, direct materials, variable overhead, and fixed overhead. 2 per unit. Mar 18, 2019 · 2) Calculate Total Cost. Aug 17, 2008 · Using the following information, compute cost of goods manufactured, which is the cost of Inventory transferred to Finished Goods Inventory. d. Maggie’s average cost per shirt = $470/150 = $3. accumulated the following standard cost data concerning product Cty31. Beg. $2,000 F Direct materials: 18,000 pounds at a total cost of $17,280;. The relevant range for the total fixed costs is from 0 to 100 tons; 101 to 200 tons; 201 to 300 tons, and so on. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: A$70,720 . With a variable cost, the per unit cost stays the same, but the more units produced or sold, the higher the total cost. Weigh the costs and benefits associated with each method. The term manufacturing costs usually refers to material used, direct labor incurred, and overhead incurred in a manufacturing business. It remains the same no matter what quantity of output is being produced. and manufacturing cost data for March 2008, the first month of operation. Production: 12,000 units finished and transferred out; 4,000 units started that are 100% com-plete as to materials and 25% complete as to conversion costs. $82,000 d. 100 before June 1. $96,000 c. 3. Job orders completed during the month: Job 405 and Job 406. total variable cost will remain unchanged. In determining which support department cost allocation method to use, companies must: Determine the extent of support department interaction. Gross profit for 2016 = $84,263. Jan 21, 2019 · For this situation, the calculation of total manufacturing cost is as follows: Direct materials. Required: 1. Related Courses. $165,100. had raw materials of $54,000. Production orders costing $520,000 according to their job cost sheets were completed during October and transferred to Finished Goods. Labor per unit: 0. For items you make, you will need the help of your CPA to determine the cost to add to inventory. Feb 14, 2013 · Use the following information to compute the following items: (a) Calculate the cost of materials used. While the preceding description may make it appear that the calculation of the unit product cost is simple, there are a number of variations on the concept that make it more difficult to calculate. The calculation for total manufacturing costs includes the expenses for direct labor, raw materials and manufacturing The company began production with the following inventory: The formula to calculate the cost of raw materials used is:. Sales commissions $12,600 Direct labor 41,400 Indirect materials 17,000 Factory manager salaries 9,000 Factory supplies 10,800 Indirect labor 8,100 Depreciation—office equipment 6,800 Direct materials 42,300 Corporate office salaries 44,300 Depreciation—factory equipment 9,300 Mustang Corporation has accumulated the following accounting data for the month of April: Finished goods inventory, April 1 $30,200 Finished goods inventory, April 30 24,600 Total cost of goods manufactured 114,500 The cost of goods sold for the year is: $169,300. Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. $22,900. Chabot Company's average operating assets were: The actual hours of direct labor at standard rate equals $43,200. The total cost of a product takes into account a wide range of expenses, including all fixed and variable costs associated with producing the product. Her total Cost of Goods Available for Sale is $470 (110 shirts at $3 each and 40 at $3. Sales commissions $12,200 Direct labor 41,000 Indirect materials 16,600 Factory manager salaries 8,600 Factory supplies 10,400 Indirect labor 7,700 Depreciation—office equipment 6,400 Direct materials 41,900 Corporate office Answer to: Use the following data to compute total factory overhead costs for the month: Sales commissions $10,800 Direct labor 39,600 Indirect Total manufacturing costs $1,370,000 [$450,000 + $320,000 + $600,000] Add: Beginning work in process inventory xxxx [Since these are equal, they cancel each other out] Deduct: Ending work in process inventory xxxx Cost of goods manufactured $1,370,000 b) Calculate cost of goods sold for the year and show how the cost of goods sold section would appear in a detailed income statement. For purchased products, keep the invoices and any other paperwork. Mar 16, 2015 · During the month of March, direct labor cost totaled $17,000 and direct labor cost was 70% of prime cost. Cost Accounting Fundamentals Variable selling and administrative expenses: $40 Fixed manufacturing overhead expenses: $1200,000 Fixed selling and administrative expenses: $800,000 Required: Using the data given above, compute the unit product cost of one bike under: absorption costing system. Chabot Company had the following results last year: net operating income, $2,160; turnover, 5; and ROI 18%. As mentioned above, this value is critical for companies when it comes to pricing decisions. for the year 2016, Gross profit for 2016 = Net sales (2016) – Cost of sales (2016) = $215,639 – $131,376. Sales commissions 10,800 Direct labor 39,600 Indirect materials 15,200 Factory manager salaries 7,200 Factory supplies 9,000 Indirect labor 6,300 Depreciation—office equipment 5,000 Direct materials 40,500 Corporate office salaries 42,500 Depreciation—factory equipment 7,500: Question: 1/ Use The Following Data To Compute Total Manufacturing Costs For The Month: Sales Commissions $ 11,000 Direct Labor 39,800 Indirect Materials 15,400 Factory Manager Salaries 7,400 Factory Supplies 9,200 Indirect Labor 6,500 Depreciation—office Equipment 5,200 Direct Materials 40,700 Corporate Office Salaries 42,700 Depreciation—factory Equipment Question: Use the following data to compute total manufacturing costs for the month: Sales commissions $12,800 . The next step is to find the total cost of production. During the month, it was assigned the following costs: direct materials, $77,000; direct labor, $44,000; and factory overhead, 20% of direct material cost. The company’s total manufacturing costs for the year were $91. By redesigning and automating the process, the cycle time was cut down to 15 minutes and the MCE rose up to 1. This step is necessary because we are looking for the average total cost, i. variable costing system. fixed costs will increase in total. To compute the direct labor price variance, subtract the actual hours of direct labor at standard rate ($43,200) from the actual cost of direct labor ($46,800) Inserting this information into the income statement yields the following: As you can see, the ending inventory amount is not yet shown. 20,000 units in work in process as at 1 December: $20,000 direct materials and $40,000 for conversion costs (i. A total of 25,000 units were transferred out during the month. D. Using an average cost/shirt of $3. 1 Answer to Compute total manufacturing costs for the month Given the following information: The following information comes from the accounting records for Santa Cruz, Inc. Answers will not be recorded until you hit Submit Exam. ” Use the following data to compute total factory overhead costs for the month. Mendoza, Inc. Each unit requires 4 hours of direct labor and the company expects to produce 2,000 units each month. the cost per unit. Extra questions for Chapter 6 Joint and by-product costing Variable cost refers to the TOTAL variable cost of all units, whereas marginal cost is the variable cost of the last unit only. 2 million, which is $7. The total cost in the beginning work in process inventory was $56,400. 50 each). Fixed cost = $1,457. The cost of goods manufactured schedule is used to calculate the cost of producing products for a period of time. Manufacturing overhead applied to Work in Process for the month was $75,000. 50 per cup of yogurt. 80 each. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Company policy calls for a given month’s ending raw materials inventory to equal 50% of the next month’s materials requirements. Special care is required when calculating unit costs in the following situations: The product’s selling price is $25. 0004 [15 minutes / (26 days × 24 hours per day × 60 minutes per hour)]. Sales commissions 10,800 Direct labor 39,600 Indirect materials 15,200 Factory manager salaries 7,200 Factory supplies 9,000 Indirect labor 6,300 Depreciation—office equipment 5,000 Direct materials 40,500 Corporate office The following costs were incurred in May: Direct materials $ 39,20 0 Direct labor $ 33,40 0 Manufacturing overhead $ 25,10 0 Selling expenses $ 23,60 0 Administrative expenses $ 40,60 0 Conversion costs during the month totaled: $58,500 Explanation Conversion cost = Direct labor + Oct 02, 2018 · Simply put, the total manufacturing cost is the total sum of a budget that is needed to complete production during one financial period. Developer. Transactions during the month are as follows: Direct material Cost for the month: $ 1,000,000; Direct labor cost for the month: $ 500,000; Paid the rent for the whole year amounting to $ 48,000. Kline Manufacturing has the following labor costs: Factory—Gross wages $490,000 Factory—Net wages 420,000 Employer Payroll Taxes Payable 50,000 The entry to record the cost of factory labor and the associated payroll tax expense will include a debit to Factory Labor for a. Trio Company reports the following information for the current year, Jul 12, 2019 · The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 42,000 Units sold 37,000 Selling price per unit $76 Selling and administrative expenses: Variable per unit $3 Fixed (per month)$557,000 Manufacturing costs: Direct materials cost per unit $16 Direct labor cost per unit $9 Variable manufacturing overhead cost per unit $1 Fixed manufacturing overhead cost (per month)$672,000 Management is anxious to see how was $60. 40 for materials and $4. manufacturing overhead cost. The rate last year was $5. Compute the marginal product Using the data from above example we can compute the cost of goods sold and the cost of ending inventory as follows: Solution: Cost of goods sold: $4,092 + $5,158 + $14722 + $2,103 = $26,075 (Total of sales column) Cost of ending inventory: $9,665 (Balance column) Suppose one unit of product X requires the following costs: Direct materials: $5 per unit Direct labor: $4 per unit Variable manufacturing overhead: $1 per unit Fixed manufacturing overhead: $20,000 per year. Budgeted fixed factory overhead is $18,000, which includes $2,800 of factory equipment depreciation. 1) The data below are the final exam scores of 10 randomly selected history students manager's sales representatives travel per month and the amount of sales (in Use the scatter diagram to describe how, if at all, the variables are related. Indicate whether each of the above costs is a manu- facturing cost or a nonmanufacturing cost. $108,900. Practice Questions and Answers from Lesson III-1: Inputs and Costs . 00 per unit and its total product cost is $20. Compute the total manufacturing cost assigned to Job P90. Manufacturing costs: Materials $48,000; labor $42,000; overhead $36,000. $141,100. PPIs are used to adjust other economic time series for price changes and to translate those series into inflation-free dollars. So in order to calculate how much our inventory are worth and how much our cost of goods sold came to, we need to calculate how much it cost us to manufacture the finished goods. $81,000 b. prime cost. Upon comparing Job P90’s sales revenue to its total manufacturing cost, the company’s chief; financial officer said “If this exact same opportunity walked through our front door tomorrow, I’d turn it down rather than making it and selling it for $2,500. Manufacturing overhead: Predetermined rate is 120% of direct labor cost. 1 Answer to Use the following data to compute total manufacturing costs for the month. Or in plain terms the cost to make products during a period of time. State your results in the cost equation form Y = f + vX by filling in the dollar amounts for f and v. Total Variable Cost of Producing 4 units = Total Cost of Producing 4 Units – Total Cost of Producing 0 units In this case, let’s say it costs $840 to produce four units and $130 to produce none. Direct labor: A manufacturing company has variable overhead cost of $2. The Goods in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $4,400 debit balance after all posting is completed. The ending inventory was 40% complete for conversion costs. Once the full data is available and has been analyzed (usually a few months As shown in the above formula, it is included in GDP along with indirect  This study note provides a short introduction to fixed and variable costs for businesses in the By continuing to use our website you consent to our use of cookies as Average fixed costs must fall continuously as output increases because total fixed If for example, the short-run total costs of a firm are given by the formula. One area of costing that is often overlooked is the calculation of fixed manufacturing overhead expenses. At the beginning of the month, Chateo Inc. Variable cost = $1,075 There were no prior costs accumulated on Job No. Depreciation on production equipment; Paint used to produce wagons; Accounting staff performing tax services for a client; Nails used to assemble cabinets Production costs chargeable to the Sanding Department in July for Joyful Art are $30,000 for materials, $26,000 for labor, and $10,000 for manufacturing overhead. Parker Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours. Jun 13, 2013 · 1. Unit fixed manufacturing overhead: $37 ($96,940 / 2,620 = 37) Unit Product cost under absorption costing: $49 + 21 + 12 + 37 = $119. Sample Problem: Use the following data to construct a statement of cash flows using the direct and indirect methods. 2 per hour based on a budgeted production volume of 90,000 direct labour for the year. a. Factory overhead is closed out only at the end of the year. Mar 18, 2019 · 3) Divide Total Cost by Total Quantity. For example, if overhead totals $75,000 for a month and direct costs equal $125,000, you have an overhead rate of 0. Feb 11, 2012 · a. In computing unit cost for the month when there is beginning inventory, the cost of the beginning inventory is added to the monthly production costs before dividing by equivalent production. Video You can add totals to a table by selecting the Total Row checkbox on the Design tab. , for March: Direct material inventory, March 1 $ 18,900 Direct material inventory, March 31 15,000 Work-in-process inventory, March 1 However, by subtracting the total manufacturing cost of revenues, George finds that the profit for the month of January is $150,000 – $111,448 = $38,552. Total manufacturing overhead cost . $10,000 direct labor and $30,000 manufacturing overheads) During the month, fixed costs were $22,800 and variable costs were 60% of sales. Module. 50 per direct labor hour) is based on an expected volume of 75% of the factory’s capacity of 20,000 units per month. The cost sheet of the one job still in process shows direct material cost of $2,000 and direct labor cost of $800. A. (c) Calculate the Cost of Goods Manufactured during the period. Compute the total costs to manufacture the additional units of Part J. Following are the company’s budgeted overhead costs per month at the 75% level. has provided the following data for the month of September. The actual hours of direct labor at standard rate equals $43,200. Assuming manufacturing overhead is applied at the rate of $12 per machine-hour, what is the total cost of Job No. 04 Basic cost Flows: raw Materials Used LO4. Mar 21, 2015 · Warila Inc. Nov 04, 2019 · Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. manufactures and sells aluminum dishes for camping and outdoor enthusiasts through a mail order catalog operation. A manufacturing company has variable overhead cost of $2. Debit work in process inventory $240,000 and credit manufacturing overhead $240,000. The following are the excerpts from the entity’s income statement for the calendar year ending in December 2017: Raw material = $300,000; Labour cost = $150,000 The cost of goods manufactured schedule is used to calculate the cost of producing products for a period of time. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? Step 1: Firstly, it is to be determined which input costs are indirect by nature for the manufacturing of a product or service delivery. Direct labor. 34. D) $184,260 1 Answer to Montreal Manufacturing Inc. Factory Overhead of $1,100 = $100 (light bulbs) + $400 (depreciation of factory equipment) + $600 (factory utilities). Jun 13, 2013 · 3. Divide the total overhead by the direct costs. , which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 7,000 Variable costs per unit: Direct materials $87 Direct labor $75 Variable manufacturing overhead $5 Variable selling and administrative expenses $10 Fixed costs: Fixed manufacturing overhead $273,000 Fixed selling and administrative expenses At the end of the year, Beta Company has an unadjusted debit balance in the Manufacturing Overheard account of $3,950. The standard cost of direct labors comes to $48,000. Budgeted direct material cost N$15 000 . In a manufacturing business, management must have accurate data on the exact costs it takes to make each product. (b) Using the contribution margin technique, compute the break-even point in dollars and in units. Direct labor costs were incurred. If it takes one yard of fabric at a cost of $5 per yard to make one chair, the total materials cost for one chair is $5. The result is the cost of direct materials incurred during the period. 147. 43 x appointment) 4/ Cost of tanning services for September. Aug 15, 2019 · To calculate this number, identify the total direct cost of production and the total overhead costs for the month. $18,000. The following questions practice these skills: Identify total cost, variable cost, fixed cost, marginal cost, and average total cost. 100? Jan 25, 2019 · Direct labor cost is the total cost of employing workers that work directly on a manufacturing product. If you need to exit before completing the exam, click Cancel Exam. Using the following data for July, calculate the cost of goods manufactured: The cost of goods manufactured was: a. She knew that the total cost for the month (including organization-sustaining costs) was $240,000 and that 15,000 diners had been served. Next, add up all these costs together to arrive at the total manufacturing overhead. $440,000. 2000 1999 Cash $4,000 $14,000 Accounts receivable 25,000 32,500 Prepaid insurance 5,000 7,000 Inventory 37,000 34,000 Fixed assets 316,000 270,000 Accumulated Depreciation (45,000) (30,000) Total assets 342,000 327,500 Ridette Inc. Oct 04, 2012 · Costs pertaining to the month of April are as follows: Beginning inventory costs: Materials $64,000, Direct Labour $19,000, Factory overhead $15,000 Costs incurred during April include: Materials $558,960, Direct Labour $198,600, Factory Overhead $384,680 a) EQUIVALENT UNITS OF PRODUCTION: Materials = 102,000 Conversion Costs= 92,000 b) CALCULATE THE UNIT COSTS FOR THE MONTH -> ***round to three decimal places*** This is what i did: Unit materials cost= ($64,000+$558,960) / 102,000 = $6. Later, Friends Company used $100 of light bulbs in the manufacturing process, and this cost was recorded as part of the Factory Overhead cost. The manufacturing costs are the costs directly associated with production: direct materials, direct labor, variable overhead, and fixed overhead. (d) Calculate the Cost of Goods Sold during the period. 13. The company’s total budgeted variable and fixed manufacturing overhead costs at the denominator level of activity are $14,000 for variable overhead and $6,000 for fixed overhead. 0. Use the following data to compute total manufacturing costs for the month dales eemeissiens 10, s00 Posted 3 months ago 135. The total cost for 10 chairs is $50 Answer to Use the following data to compute total manufacturing costs for the month. 107 The Finishing Department of Edwards Company has the following production and cost data for July: transferred out 4,000 units started 2,000 units that are 40% completed at July 31 Materials addes $30,000; conversion costs incurred $19,200 Materiales are entered at the beginning of the process. In the cost formula (Y = a + bX) that is used to estimate the total manufacturing Estimated total manufacturing overhead cost / estimated total amount of the Which of the following would not be a good allocation base for manufacturing . If one pound of dough is left at the end of the accounting period, the work-in progress value is $6 (the sum of direct materials, For the month of October, Avery's estimated manufacturing overhead cost was $300,000 based on an estimated activity level of 100,000 direct labor-hours. (b) Calculate the manufacturing costs incurred during the period. 50 per unit. Manufacturing Cost Terms. Electricity costs are $50,000 for the year. Factory overhead was applied to jobs at the rate of $35. Using variable costing, the $40,000 in fixed manufacturing overhead costs continues to be expensed when incurred. Sales commissions 10,800 Direct labor 39,600 Indirect materials 15,200 Factory manager salaries 7,200 Factory supplies 9,000 Indirect labor 6,300 Depreciation—office equipment 5,000 Direct materials 40,500 Corporate office Answer to: Manufacturing cost flows Compute the total manufacturing cost for a manufacturer with the following information for the month. use the following data to compute total manufacturing costs for the month quizlet

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