Cepeda Corporation has the following cost records for June 2018:+Indirect factory labor$4,500Factory utilities$400Direct materials used20,000Depreciation, factory equipment 1,400Work in process, 6/1/183,000Direct labor40,000Work in process, 6/30/183,800Maintenance, factory equipment 1,800Finished goods, 6/1/185,000Indirect materials2,200Finished goods, 6/30/187,500Factory manager's salary3,000Instructionsa. Prepare a cost of goods manufactured schedule for June 2018.b. Prepare an income statement through gross profit for June 2018 assuming sales revenue is$92,100.

Step 1: Introduction to Gross Profit:Gross profit is earned after meeting the direct costs…

Answered: Cepeda Corporation has the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following cost data relate to the manufacturing activities of Newberry Company during the just completed year: Total actual manufacturing OH costs incurred (including 15,000 of indirect materials) 353,000 Purchases of raw materials (both direct and Indirect) 250,000 Direct labor cost 135,000 Raw Materials, beg 10,000 Raw Materials, end 15,000 Work in Process, beg 20,000 Work in process, end 35,000 The company uses a predetermined overhead rate to apply manufacturing overhead cost to production. The predetermined overhead rate for the year was $15 per machine-hour. A total of 23,000 machine-hours were recorded for the year. Required: Compute the amount of underapplied or overapplied manufacturing overhead cost for the year.
Syarikat Aman Sdn Bhd (SASB) manufactures leather products for the local market. At the beginning of the year 2018, SASB estimates the following costs: Manufacturing overhead costs$ 498,750 Direct labor cost $ 600,000 The following are information related to the production in 2018: Direct labor $ 640,000 Depreciation $ 120,000 Property tax $ 6,000 Supervisor salary $ 100,000 Utilities $ 29,500 Insurance $ 15,000 Rental of space $ 150,000 Indirect labor $ 41,000 Indirect material : Inventory at January 2017 $ 24,000 Purchase during the year $ 47,000 Inventory at December 2017 $ 31,500 T he price per unit for direct material is estimated at $ 5 per unit and direct labor rate per unit is $ 16 per hour. The accountant informed that this amount is similar for both budgeted and actual costs. REQUIRED: (a) Calculate the pre-determined overhead rate for SASB using direct labor hour as a basis. (b) Calculate the under-applied or over-applied overhead. (c) Prepare a journal entry to close the…
Monty Corporation has the following cost records for June 2022. Indirect factory labor $4,500 Factory utilities $390 Direct materials used 19,600 Depreciation, factory equipment 1,370 Work in process, 6/1/22 2,940 Direct labor 39,200 Work in process, 6/30/22 3,720 Maintenance, factory equipment 1,760 Finished goods, 6/1/22 Finished goods, 6/30/22 4,900 Indirect materials 2,250 7,350 Factory manager's salary 2,940 (a) Prepare a cost of goods manufactured schedule for June 2022. MONTY CORPORATION Cost of Goods Manufactured Schedule For the Month Ended June 30, 2022 > > > $ $ $ $
What is the total manufacturing cost charged to work in process during 2018 Calculate the cost of finished goods manufactured during 2018 Calculate cost of goods sold for 2018
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The following is the data for Lauren Enterprises: Selling and administrative expenses $75,000 Direct materials used 265,000 Direct labor (25,000 hours) 300,000 Factory overhead application rate $16 per DLH Inventories Beginning Ending Direct materials $50,000 $45,000 Work in process 75,000 90,000 Finished goods 40,000 25,000 Refer to Figure 2-14. What is the cost of goods manufactured? Inventories Beginning Ending Direct materials $50,000 $45,000 Work in process 90,000 75,000 40,000 25,000 Finished goods Refer to Figure 2-14. What is the cost of goods manufactured? $1,115,000 $965,000 $955,000 $950,000
Dani Corp incurred costs of P50,000 for direct materials (raw) purchased. Direct labor was P60,000 and factory overhead was P35,000 for May. Inventories were as follows: Raw materials beginning P14,000; raw materials ending P10,000 Work-in-process beginning 24,000; work-in-process ending 36,000 Finished goods beginning 10,000; finished goods ending 25,000 Required: Calculate the cost of goods manufactured for May
Cepeda Corporation has the following cost records for June 2018: + Indirect factory labor $4,500 Factory utilities $400 Direct materials used 20,000 Depreciation, factory equipment 1,400 Work in process, 6/1/18 3,000 Direct labor 40,000 Work in process, 6/30/18 3,800 Maintenance, factory equipment 1,800 Finished goods, 6/1/18 5,000 Indirect materials 2,200 Finished goods, 6/30/18 7,500 Factory manager's salary 3,000 Instructions a. Prepare a cost of goods manufactured schedule for June 2018. b. Prepare an income statement through gross profit for June 2018 assuming sales revenue is $92,100.
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Prince Rupert company manufactures product A. B, C and D. Data for the year ended Dec 31, 2021, is as follows. Product Units/ Production Production run Cost of material per unit ($) Direct labourhours required per unit Machine hours required per unit A 20 3 80 2 1 B 40 4 60 5 8 C 45 6 70 7 5 D 120 12 65 9 3 Cost of Direct labor per hour: $ 6 Overhead costs for Prince Rupert company. Set up cost $ 12,000 Handling material cost $ 6,000 Scheduling costs $ 14,000 i. Using the peanut butter costing approach, calculate the cost per unit. (use Direct labor hours as a basis of allocation) ii. Using ABC Costing, calculate the cost per unit. Please justify why you choose that allocation base. iii. Show the difference of cost per unit using peanut butter and ABC costing

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