FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Related questions
Concept explainers
Topic Video
Question
Average Cost
per Unit
Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . $7.00
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4.00
Variable manufacturing
Fixed manufacturing overhead . . . . . . . . . . . $5.00
Fixed selling expense . . . . . . . . . . . . . . . . . . . $3.50
Fixed administrative expense . . . . . . . . . . . . . $2.50
Sales commissions . . . . . . . . . . . . . . . . . . . . . . $1.00
Variable administrative expense . . . . . . . . . . $0.50
Answer all questions independently.
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units?
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 20,000 units?
3. For financial accounting purposes, what is the total amount of product costs incurred to make 22,000 units?
4. For financial accounting purposes, what is the total amount of period costs incurred to sell 18,000 units?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 4 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Budgeted sales revenue ............................................................................$205,000Actual manufacturing overhead ..............................................................340,000Budgeted machine hours (based on practical capacity) ..................10,000Budgeted direct-labor hours (based on practical capacity) .......... 20,000Budgeted direct-labor rate .........................................................................$ 14Budgeted manufacturing overhead .......................................................$364,000Actual machine hours ......................................................................................11,000Actual direct-labor hours ..............................................................................18,000Actual direct-labor rate ...................................................................................... $ 15 Refer to the data given above for Oneida Restaurant Supply Company. Prepare a journal entry to add to…arrow_forwardACTUAL Direct Materials Direct Labor Summary Mat. Req. No. Description Amount Time Ticket No. Description Amount Item Amount Direct Materials 132 360 meters at $32 H9 18 hours at $19 Direct Labor 134 50 meters at $32 H12 18 hours at $19 Factory Overhead Total Total Total Cost Feedback V Check My Work 1 & 2. Include the estimated and actual direct materials and direct labor. Include the estimated and applied factory overhead. What is the best explanation for the variances between actual costs and estimated costs. For this purpose, assume that the additional meters of material used in the job were spoiled, the factory overhead rate has proven to be satisfactory, and an inexperienced employee performed the work. a. The direct materials cost exceeded the estimate by $40 because 2 meters of materials were spoiled. b. Management didn't provide enough direction to complete tasks on budget. c. The direct materials cost exceeded the estimate by $320 because 10 meters of materials were spoiled.…arrow_forwardCompute conversion costs given the following data: direct materials, $394,900; direct labor, $195,700; factory overhead, $212,200 and selling expenses, $43,800. a.$168,400 b.$802,800 c.$407,900 d.$607,100arrow_forward
- 17) Refer to Figure 7.4. The marginal product of the third worker isA) 10. B) 28.67. C) 32. D) 42. 18) Refer to Figure 7.4. The average product of four workers isA) 2. B) 12.5. C) 20. D) 34.arrow_forwardExpenditures—Operating—Salaries.......................................... Cash................................................................................ Salaries Payable for example? Incurred salaries of $300,000 $280,000 of which was paid. Where do i put these salaries.arrow_forwardThe following data relate to M4 Engineering: Anticipated sales.….......... 100,000 units Normal sales price/unit........... Variable manufacturing cost/unit...... $10 Variable selling cost/unit............. $5 Fixed manufacturing cost.….............. $800,000 ($8.00/unit) $32 Fixed selling cost. Total cost/unit (full absorption)....... $25.00 M4 Engineering has the opportunity to take a one-time special order from a customer who wants to buy 20,000 units, but is only willing to pay $18.00 per unit. The special order will not affect M4's anticipated sales to other customers or the company's fixed costs. $200,000 ($2.00/unit) Should M4 Engineering accept the special order? Why or why not? Show your calculations.arrow_forward
- High–low method A department of Alpha Co. incurred the following costs for themonth of September. Variable costs, and the variable portion of mixed costs, are afunction of the number of units of activity:Activity level in units. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000Variable costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000Fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000Mixed costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000Total costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,000During October the activity level was 8,000 units, and the total costs incurred were$70,500.Required:a. Calculate the variable costs, fixed costs, and mixed costs incurred duringOctober.b. Use the high–low method to calculate the cost formula for mixed cost.arrow_forwardshow Total Period cost by using absorption costing.arrow_forwardDirect Labor Actual Data: Units produced Direct Labor Standard Cost Data per 1 Unit Quantity Price 2 hrs $41/hr SHOW ALL COMPUTATIONS. 20 units 39 hrs; total cost $1560 Compute rate variance, efficiency variance, direct labor variancearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education