FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Concept explainers

Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing …
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In compari…
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Compute total prime cost

Alameda Manufacturing manufactures a variety of wooden picture frames using recycled wood from old barns. Alameda Manufacturing has reported the following costs for the previous year. Assume no production inventories. $ 24,000 $ 43,400 $121,100 $ 32,400 $ 15,800 $ 49,700 $ 3,150 $ 40,600 $ 43,000 $ 27,900 $ 34,300 $ 87,700 $ 74,500 Advertising Cost of hardware (hangers, decorations, etc) Cost of wood Depreciation on production equipment Factory property taxes Factory rent Glue Production supervisor salary Sales manager salary Utilities for factory Wages for naintenance workers wages of assenbly workers Wages of finishing workers
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Transcribed Image Text:Alameda Manufacturing manufactures a variety of wooden picture frames using recycled wood from old barns. Alameda Manufacturing has reported the following costs for the previous year. Assume no production inventories. $ 24,000 $ 43,400 $121,100 $ 32,400 $ 15,800 $ 49,700 $ 3,150 $ 40,600 $ 43,000 $ 27,900 $ 34,300 $ 87,700 $ 74,500 Advertising Cost of hardware (hangers, decorations, etc) Cost of wood Depreciation on production equipment Factory property taxes Factory rent Glue Production supervisor salary Sales manager salary Utilities for factory Wages for naintenance workers wages of assenbly workers Wages of finishing workers
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Calculate the total direct material cost as follows:
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Calculate the direct labor cost as follows:
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Calculate total prime cost as follows:
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