Pan Demic, Inc. (PDI) manufactures and sells cast iron skillets. A finished skillet sells for $40 and costs $15 to manufacture. PDI uses one raw material, iron ore, which is buys for $8/pound. Skillet Forgers heat the iron ore and form it into skillets. Forgers are paid $55/hour. Period 1: During the period, PDI purchased $4,000 of Iron Ore. At the end of the period, they had $2,400 of ore left in Raw Materials They used 120 hours of direct labor and incurred $12,000 of Factory Overhead. At the beginning of the period, PDI had $3,000 of costs in WIP and $2,400 of costs in Finished Goods. Prepare the Schedule of Cost of Goods Sold for PDI. Do not use dollar signs. Use whole numbers only (no decimal places) PDI Schedule of Cost of Goods Sold Finished Goods Beginning Inventory Cost of Goods Manufactured Account Cost of Goods Available for Sale Finished Goods Ending Inventory Cost of Goods Sold WIP Inventory Based on your work above, compete the Inventory section of the Balance Sheet as of the end of the period. Do not use the dollar sign ($). Use whole numbers only (no decimal places). PDI Balance Sheet Raw Materials Inventory Account Total Inventory Finished Goods Inventory Dollar Amount 21,900 3,150 Amount 10,250

A company manufactures and sells a gold bracelet for $406.00. The company’s accounting system says the unit product cost for this bracelet is $261.00, as shown below: Direct materials $ 147 Direct labor 83 Manufacturing overhead 31 Unit product cost $ 261 A wedding party has approached Imperial Jewelers about buying 18 gold bracelets for the discounted price of $366.00 each. The wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $13. Imperial Jewelers would have to buy a special tool for $460 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order, Imperial Jewelers determined most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $14.00 of the overhead is variable with respect to the number of bracelets produced. The company…

Beta makes a component used in its engine. Monthly production costs for 1,000 component units are as follows: Direct materials $46,000 Direct labor 11,500 Variable overhead costs 34,500 Fixed overhead costs 23,000 Total costs $115,000 It is estimated that 8% of the fixed overhead costs will no longer be incurred if the company purchases the component from an outside supplier. Beta has the option of purchasing the component from an outside supplier at $97.75 per unit. 22) If Beta accepts the offer from the outside supplier, the monthly avoidable costs (costs that will no longer be incurred) total 23) If Beta purchases 1,000 units from the outside supplier per month, then what would be the change in operating income?

3B Corporation makes different types of hubcaps for cars. The company accumulates volumes of metal edges as scrap. At least once a month, the scrap metal is sold to a local manufacturer for further processing. This month's scrap sales on account total P14,000.00. The company is using actual cost system. 10: Required: Prepare the appropriate journal entry to record the sale of the scrap for each of the following alternatives: 1 Scrap sale is viewed as additional revenue 2. Scrap sale is viewed as reduction of cost of goods sold 3. When scrap materials are traceable as indirect materials 4. When scrap materials are traceable as direct materials