Splish Products manufactures and sells a variety of camping products. Recently the compa deluxe portable cooking unit. Cost and sales data for the first month of operation are show Beginning inventory Units produced Units sold Manufacturing costs Fixed overhead 0 units 10,000 8,400 $97,200
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- Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet: Algers computes its overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows: a. Units produced: 53,000 b. Direct materials purchased: 274,000 pounds at 2.50 per pound c. Direct materials used: 270,300 pounds d. Direct labor: 40,100 hours at 17.95 per hour e. Fixed overhead: 161,700 f. Variable overhead: 122,000 Required: 1. Compute price and usage variances for direct materials. 2. Compute the direct labor rate and labor efficiency variances. 3. Compute the fixed overhead spending and volume variances. Interpret the volume variance. 4. Compute the variable overhead spending and efficiency variances. 5. Prepare journal entries for the following: a. The purchase of direct materials b. The issuance of direct materials to production (Work in Process) c. The addition of direct labor to Work in Process d. The addition of overhead to Work in Process e. The incurrence of actual overhead costs f. Closing out of variances to Cost of Goods SoldSmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.Proteger Company manufactures insect repellant lotion. The Mixing Department, the first process department, mixes the chemicals required for the repellant. The following data are for the current year: Direct materials are added at the beginning of the process. Ending inventory is 95 percent complete with respect to direct labor and overhead. The cost of goods transferred out for the year is: a. 4,471,200 b. 3,571,200 c. 3,780,000 d. 3,024,000
- 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?SCHEDULE OF COST OF GOODS MANUFACTURED The following information is supplied for Sanchez Welding and Manufacturing Company. Prepare a schedule of cost of goods manufactured for the year ended December 31, 20--. Assume that all materials inventory items are direct materials. Work in process, January 1 20,500 Materials inventory, January 1 11,000 Materials purchases 12,000 Materials inventory, December 31 13,000 Direct labor 9,500 Overhead 5,500 Work in process, December 31 10,500During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.
- Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of household cleaning products. Palladiums controller has developed standard costs for the following four overhead items: Next year, Palladium expects production to require 90,000 direct labor hours. Exercise 9-64 Performance Report Based on Actual Production Refer to the information for Palladium Inc. above. Assume that actual production required 93,000 direct labor hours at standard. The actual overhead costs incurred were as follows: Required: Prepare a performance report for the period based on actual production.Kokomo Kayak Inc. uses the process cost system. The following data, taken from the organizations books, reflect the results of manufacturing operations during the month of March: Production Costs Work in process, beginning of period: Costs incurred during month: Production Data: 18,000 units finished and transferred to stockroom. Work in process, end of period, 3,000 units, two-thirds completed. Required: Prepare a cost of production summary for March.Diskit Shi is reviewing the cost structure of different products. The following information relate a product. Direct Materials Inventory, beginning of the year $5,500 Direct Materials Inventory, end of the year 3,000 Direct Materials purchased during the year 45,000 Work in Process Inventory, beginning of the year 9,000 Manufacturing overhead applied during the year 20,000 Work in Process Inventory, end of the year 14,000 Predetermined overhead rate—200% of direct labour costCalculate the amount of direct labour cost incurred during the year.
- The business manufactures custom patios made of concrete, brick, fiberglass, and lumber- depending upon customer preference. The company's fiscal year is the calendar year. At the beginning of July, selected balances were as follows: Direct Materials Inventory, July 1 $4200 Work-In-Process Inventory, July 1 5540* Manufacturing Overhead Applied to Date 32640 Actual Manufacturing Overhead to Date 31650 *Details for Work in Process Job 85 Job 86 Job 87 Total Direct Materials $600 800 900 Direct Labor 320 540 580 Manufacturing Overhead 400 675 725 = 1320 + 2015 + 2205 = 5540 (the last row are the separate columns added together and then totaled at the end). During July, total direct materials purchased were $4900. Overhead costs incurred were $3800. Direct materials and direct labor used were as follows: Materials Requested Amounts Labor Time Ticket Amounts Job 85 $1100 $840 Job 86 500 360 Job 87 1300 1200…The business manufactures custom patios made of concrete, brick, fiberglass, and lumber- depending upon customer preference. The company's fiscal year is the calendar year. At the beginning of July, selected balances were as follows: Direct Materials Inventory, July 1 $4200 Work-In-Process Inventory, July 1 5540* Manufacturing Overhead Applied to Date 32640 Actual Manufacturing Overhead to Date 31650 *Details for Work in Process Job 85 Job 86 Job 87 Total Direct Materials $600 800 900 Direct Labor 320 540 580 Manufacturing Overhead 400 675 725 = 1320 + 2015 + 2205 = 5540 (the last row are the separate columns added together and then totaled at the end). During July, total direct materials purchased were $4900. Overhead costs incurred were $3800. Direct materials and direct labor used were as follows: Materials Requested Amounts Labor Time Ticket Amounts Job 85 $1100 $840 Job 86 500 360 Job 87 1300 1200…Required Information Use the following Informatlon to answer questlons. (Static) [The following information apples to the questions displayed below) Information on Kwon Manufacturing's activitles for Its first month of operatlons follows: 6. Purchased $100,000 of raw matertals on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials $ 48,200 23,600 71,800 8,620 S se,420 Total materials used c. Time tickets show the following labor used for the month. ces Job 201 Job 202 Total direct labor Indirect labor $39, 200 12,600 51,800 24,200 $ 76,000 Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost e. Transferred Job 201 to Finished Goods Inventory 1. Sold Job 201 for $163,760 on credit. g. Incurred the following actual other overhead costs for the month Depreciation of factory equipnent Rent on factory building (payable)…