dont give answer in image format Larkspur Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio systemmarkets, Larkspur decided to turn its retail store into an audio equipment factory. Production began October 1, 2022.Direct materials costs for an audio system total $77 per unit. Workers on the production lines are paid $14 per hour. An audio systemtakes 6 labor hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $3,500 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 buildingdepreciation is $6,960 per year. Property taxes on the factory building will be $9,360 per year.(a)Your answer is correct.Assuming that Larkspur manufactures, on average, 1.500 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. Larkspur Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio systemmarkets, Larkspur decided to turn its retail store into an audio equipment factory. Production began October 1, 2022.Direct materials costs for an audio system total $77 per unit. Workers on the production lines are paid $14 per hour. An audio systemtakes 6 labor hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $3,500 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 buildingdepreciation is $6,960 per year. Property taxes on the factory building will be $9,360 per year.(a)Your answer is correct.Assuming that Larkspur manufactures, on average, 1.500 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.

Calculation of each cost of item on sheet and calculation of cost to produce one audio system With…

Larkspur Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets, Larkspur decided to turn its retail store into an audio equipment factory. Production began October 1, 2022. Direct materials costs for an audio system total $77 per unit. Workers on the production lines are paid $14 per hour. An audio system takes 6 labor hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $3,500 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 is $6,960 per year. Property taxes on the factory building will be $9,360 per year. (a)

Larkspur Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets, Larkspur decided to turn its retail store into an audio equipment factory. Production began October 1, 2022. Direct materials costs for an audio system total $77 per unit. Workers on the production lines are paid $14 per hour. An audio system takes 6 labor hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $3,500 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 is $6,960 per year. Property taxes on the factory building will be $9,360 per year. (a)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 7P: Self-Construction Olson Machine Company manufactures small and large milling machines. Selling...

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Self-Construction Olson Machine Company manufactures small and large milling machines. Selling prices of these machines range from 35,000 to 200,000. During the 5-month period from August 1, 2019, through December 31, 2019, Olson manufactured a milling machine for its own use. This machine was built as part of the regular production activities. The project required a large amount of time front planning and supervisory personnel, as well as that of some of the companys officers, because it was a more sophisticated type of machine than the regular production models. Throughout the 5-month period, Olson charged all costs directly associated with the construction of the machine to a special account entitled Asset Construction Account. An analysis of the charges to this account as of December 31, 2019, follows: Olson allocates factory overhead to normal production as a percent of direct labor dollars as follows: Olson uses a flat rate of 40% of direct labor dollars to allocate general and administrative overhead. During the machine testing period, a cutter head malfunctioned and did extensive damage to the machine table and one cutter housing. This damage was not anticipated and was the result of an error in the assembly operation. Although no additional raw materials were needed to make the machine operational after the accident, the following labor for rework was required: Olson has included all these labor charges in the asset construction account. In addition, it included in the account the repairs and maintenance charges of 1,340 that it incurred as a result of the malfunction. Required: 1. Compute, consistent with GAAP and common practice, the amount that Olson should capitalize for the milling machine as of December 31, 2019, when it declares the machine operational. 2. Next Level Identify the costs you included in Requirement 1 for which there are acceptable alternative procedures. Describe the alternative procedure(s) in each case.
Teal Mountain Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets, Teal Mountain decided to turn its retail store into an audio equipment factory. Production began October 1, 2022. Direct materials costs for an audio system total $77 per unit. Workers on the production lines are paid $13 per hour. An audio system takes 6 labor hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,070 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is $3,700. Factory janitorial costs are $2,030 monthly. Advertising costs for the audio system will be $9,030 per month. The factory building depreciation is $6,360 per year. Property taxes on the factory building will be $8,520 per year. Assuming that Teal Mountain manufactures, on average, 1,400 audio systems per month, enter each cost item on your answer sheet, placing…
Splish Brothers Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets Spish Brothers decided to turn its retail store into an audio equipment factory Production began October 1.2025. Direct materials costs for an audio system total $75 per unit Workers on the production lines are paid $15 per hour An audio system takes 7 labor hours to complets. In addition, the rent on the equipment used to assemble audio systems amounts to $5,960 per month Indirect materials cost $7 per system. A supervisor was hired to oversee production her monthly salary is $2.060 Factory janitorial costs are $2.310 monthly Advertising costs for the audio system will be $9.330 per month. The factory building depreciation is $7,080 per year. Property taxes on the factory building will be $8.400 per year (a) Assuming that Splish Brothers manufactures, on average 1.500 audio systems per month enter each cost item on your answer sheet placing the…
Ibri Company, a manufacturer of stereo systems, started its production in January 2018. For the preceding 3 years had been a retailer of stereo systems. After a thorough survey of stereo system markets, Ibri Company decided to turn its retail store into a stereo equipment factory. Raw materials cost for a stereo system will total $77 per unit. Workers on the production lines are on average paid $11 per hour. A stereo system usually takes 4 hours to complete. In addition, the rent on the equipment used to assemble stereo systems amounts to $5,200 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is $3,000. Factory janitorial costs are $1,000 monthly. Advertising costs for the stereo system will be $5,000 per month. The factory building depreciation expense is $8,400 per year. Property taxes on the factory building will be $12,000 per year. Instructions Prepare an answer sheet with the following column headings. Cost…
Edmund Supplies Company sold 3,170 metal connectors on account to Door Incorporated for $200 each on September 15. Each metal connector costs Edmund $150 to make. Door has 60 days to return the unused goods. Edmund believes that Door will ultimately return 75 of the connectors. On September 29, Door returns 50 connectors. Edmund has a September 30 fiscal year end. At year end, Edmund believes 75 connectors is a good estimate of the total that will be returned. The cost of recovering these products is immaterial. Edmund expects to be able to resell these goods for a profit. Instructions Prepare the following journal entries on the books of Edmund Company: Entries to record the initial sales on September 15. Entries to record the return of goods September 29. Entries to record the year-end adjustment based on estimated returns on September 30.
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 $75 per unit. Workers on the production lines are on average paid $15 per hour. An audio system usually takes 7 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,120 per month. Indirect materials cost $6 per system. A supervisor was hired to oversee production; her monthly salary is $3,840.Factory janitorial costs are $1,410 monthly. Advertising costs for the audio system will be $8,750 per month. The factory building depreciation expense is $7,200 per year. Property taxes on the factory building will be $9,000 per year. Assuming that Bell manufactures, on average, 1,520 audio systems per month, enter…
Roadside Inc. manufactures the Megalite, and is reviewing the product's cost structure. Accounting records show these costs:factory space: $250,000 per yearinsurance: $47,000 per yearsupervisor salaries: $125,000 per yearmaterials: $5.00 per lampdirect labor: $2.69 per lamprecycling charge: $0.37 per lampRoadside Inc sells the Megalite to wholesalers for $13.69 each. Calculate Roadside's contribution margin as percent of selling price on the Megalite. (Rounding: tenth of a percent. Report 25.3%, for example, as "25.3".)
McCrane Motor Company manufactures automobiles. During September 2020, the company purchased 9,000 head lamps at a cost of $10 per lamp. 70 of these lamps were used to replace the head lamps in autos used by traveling sales staff, and 8,300 lamps were put in autos manufactured during the month.Of the autos put into production during September 2020, 80% were completed and transferred to the company’s storage lot. Of the cars completed during the month, 70% were sold by September 30.(a)Determine the cost of head lamps that would appear in each of the following accounts at September 30, 2020: Raw Materials, Work in Process, Finished Goods, Cost of Goods Sold, and Selling Expenses.
6. Ibri Company, a manufacturer of stereo systems, started its production in January 2018. For the preceding 3 years had been a retailer of stereo systems. After a thorough survey of stereo system markets, Ibri Company decided to turn its retail store into a stereo equipment factory. Raw materials cost for a stereo system will total $77 per unit. Workers on the production lines are on average paid $11 per hour. A stereo system usually takes 4 hours to complete. In addition, the rent on the equipment used to assemble stereo systems amounts to $5,200 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is $3,000. Factory janitorial costs are $1,000 monthly. Advertising costs for the stereo system will be $5,000 per month. The factory building depreciation expense is $8,400 per year. Property taxes on the factory building will be $12,000 per year. Instructions (a) Prepare an answer sheet with the following column headings. Cost…
6. Ibri Company, a manufacturer of stereo systems, started its production in January 2018. For the preceding 3 years had been a retailer of stereo systems. After a thorough survey of stereo system markets, Ibri Company decided to turn its retail store into a stereo equipment factory. Raw materials cost for a stereo system will total $77 per unit. Workers on the production lines are on average paid $11 per hour. A stereo system usually takes 4 hours to complete. In addition, the rent on the equipment used to assemble stereo systems amounts to $5,200 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is $3,000. Factory janitorial costs are $1,000 monthly. Advertising costs for the stereo system will be $5,000 per month. The factory building depreciation expense is $8,400 per year. Property taxes on the factory building will be $12,000 per year.
SAP Company manufactures boats. During October, 2020, the company purchased 200 motors at a cost of P300 each. Tarkus transferred 140 motors from the warehouse to production during the month which were installed in boats manufactured during the same period. Of the boats put into production during October, 2020, 90% were completed and transferred to the company's storage lot. By October 31, a total of 100 boats completed during the month were sold. Instructions Determine the cost of motors that would appear in each of the following accounts at October 31, 2020: Raw materials inventory Work in process inventory Finished goods inventory Cost of goods sold
Vintage Audio Inc. manufactures audio speakers. Each speaker requires $96 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period: Speaker assembly cell, estimated costs: Labor Depreciation Supplies Power Total cell costs for the period The operating plan calls for 195 operating hours for the period. Each speaker requires 12 minutes of cell process time. The unit selling price for ach speaker is $260. During the period, the following transactions occurred: 1. Purchased materials to produce 650 speaker units. 2. Applied conversion costs to production of 620 speaker units. 3. Completed and transferred 590 speaker units to finished goods. 4. Sold 565 speaker units. There were no inventories at the beginning of the period. a. Journalize the summary transactions (1)-(4) for the period. Round the per unit cost to the nearest cent and use in subsequent computations. If an amount box does not require an entry, leave it blank.…