E8.8 (LO 3), AN Antonio is evaluating some of last year’s manufacturing costs for his business, Work It Out, which creates custom-fit exercise equipment for high-end clients. He is trying to strengthen his own analytical skills by looking at some of the total cost amounts and working backward to make sure he can find the detailed amounts that comprised these totals. Last year’s manufacturing costs are as follows. Total manufacturing costs $580,000 Total applied MOH (based on an MOH rate of $1.80/DL dollar) 270,000 Total cost of goods completed 630,000 Beginning balance in WIP Inventory 56,000 Required a. How much direct labor cost was incurred last year? b. What was the cost of direct materials used? c. What was the ending balance in WIP Inventory last year

E8.8 (LO 3), AN Antonio is evaluating some of last year’s manufacturing costs for his business, Work It Out, which creates custom-fit exercise equipment for high-end clients. He is trying to strengthen his own analytical skills by looking at some of the total cost amounts and working backward to make sure he can find the detailed amounts that comprised these totals. Last year’s manufacturing costs are as follows. Total manufacturing costs $580,000 Total applied MOH (based on an MOH rate of $1.80/DL dollar) 270,000 Total cost of goods completed 630,000 Beginning balance in WIP Inventory 56,000 Required a. How much direct labor cost was incurred last year? b. What was the cost of direct materials used? c. What was the ending balance in WIP Inventory last year

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...

See similar textbooks

Similar questions

Evaluate an income statement for P4.3 (LO 1, 2), AN An intern at the bakery is tasked with creating profitability information for a new spe- cialty cake. To create this new product, the bakery needs to rent a special oven, costing $500/month. Not including the oven, the cost to make one cake would be around $15, including direct materials, variable utility costs, and direct labor. No other bakery in the area is currently creating these cakes, so the bakery manager feels confident that there is a market for them. The intern, however, is not confident with her CVP ассuracy. Problems 4-33 skills. Still, she tries. She calculate the following monthly profit projection, based on an assumption of selling 40 specialty cakes in a month at a selling price of $30 each: Sales $ 1,200 Less: Variable costs 20,000 Contribution margin (18,800) Less: Fixed costs 15 Operating income (loss) $(18,815) Required a. What aspects of the intern's work, if any, did she do correctly? b. What aspects of her…
Morgan Inc. manufactures ergonomically correct office chairs. They have a contribution margin of $110,000 and fixed expenses of $28,500. They are adding a warehouse space that will add $20,000 to their fixed expenses. What is their DOL after adding this new expense? O 2.50 O 1.35 O 1.79 O 2.27
Windows is a small company that installs windows. Its cost structure is as follows: LOADING... (Click the icon to view the cost structure.) Traylor Windows' breakeven revenues is $1,870,000 and breakeven units is 3,400. Calculate the margin of safety in units and dollars and the margin of safety percentage if Traylor Windows expects to sell 3,600 windows in the year. Begin with calculating the margin of safety in dollars. Determine the formula to calculate the margin of safety in dollars. Then, enter the amounts and calculate the margin of safety in dollars. Budgeted revenue - Breakeven revenue = Margin of safety in dollars - = Next, determine the formula, enter the amounts, and calculate the margin of safety in units. Budgeted units - Breakeven units = Margin of safety in units - = Finally, calculate the margin of safety percentage if…
2) TablMor Inc. Company manufactures furniture, including tables. Selected costs are given below: 1. The salary of the CEO of the company is $250,000 per year. 2. Instead of producing the tables, the company could rent its factory space for $85,000 per year. 3. Salespeople are paid a commission of $23 for each table sold. 4. The depreciation on the machines used to make the tables totals $38,000 per year. The machines have no resale value and do not wear out through use. 5. The tables are made of iron that costs $250 per table. 6. The production line - on which workers are assembling the tables - is supervised by a production- manager who is paid $67,000 per year. 7. Four machine-hours are required to produce a table. Utility costs are $8 per machine-hour. 8. Wages are paid to workers that assemble tables. The cost of wages is $55 per table. 9. The advertising expense of the year is $180,000 per year. It covers all the company's products. The company produced 100 tables and sold 80…
Gwen is the managerial accountant in charge of Company A, which sellswater bottles. She previously determined that the fixed costs of Company A consist ofproperty taxes, a lease, and executive salaries, which add up to P500,000. Thevariable cost associated with producing one water bottle is P80 per unit. The waterbottle is sold at a premium price of P500. a. Formulate the total cost function.b. Formulate the revenue function.c. Formulate the profit function.d. Determine the breakeven quantity and the breakeven sales.e. Use the graphical method to determine the breakeven point.
Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)
Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)
Classify the following type of cost with necessary reasons:1.A company had paid 15,50,000 to a marketing research company to find expected demand of the newly developed product of the company2.A company has invested 50,00,000 in a project. The company could have earned 6,00,000 by investing the amount in proper government securities.3.Accountant of a cloth factory paid 88,000 for water which has been used for washing the clothes.
6) TablMor Inc. Company manufactures furniture, including tables. Selected costs are given below: 1. The salary of the CEO of the company is $250,000 per year. 2. Instead of producing the tables, the company could rent its factory space for $85,000 per year. 3. Salespeople are paid a commission of $23 for each table sold. 4. The depreciation on the machines used to make the tables totals $38,000 per year. The machines have no resale value and do not wear out through use. 5. The tables are made of iron that costs $250 per table. 6. The production line - on which workers are assembling the tables - is supervised by a production- manager who is paid $67,000 per year. 7. Four machine-hours are required to produce a table. Utility costs are $8 per machine-hour. 8. Wages are paid to workers that assemble tables. The cost of wages is $55 per table. 9. The advertising expense of the year is $180,000 per year. It covers all the company's products. The company produced 100 tables and sold 80…
Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $30 per set. Modern Furniture’s chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture’s were to manufacture the cushions, the materials cost would be $16 and the labor cost would be $10 per set and that it would have to purchase cutting and sewing equipment, which would add $25,000 to annual fixed costs. Required Computation for 10,000 units What amount should have been inccrued if company produce 10,000 units What amount should have been inccrued if company purhcase 10,000 units from outside What amount company save if company make 10,000 cushions
Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $30 per set. Modern Furniture’s chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture’s were to manufacture the cushions, the materials cost would be $16 and the labor cost would be $10 per set and that it would have to purchase cutting and sewing equipment, which would add $25,000 to annual fixed costs. NOTE: No need to enter comma between numbers Required Computation for 10,000 units What amount should have been inccrued if company produce 10,000 units What amount should have been inccrued if company purhcase 10,000 units from outside What amount company save if company make 10,000 cushions
As the newly appointed Controller of Lynbrook, Inc. you have been asked to evaluate several scenarios that management is considering to improve the overall profitability of the company. Lynbrook manufactures and sells a product called a Wren, its only product. The company normally produces and sells 60,000 Wrens each year at a selling price of $32 per unit. The company's unit costs at this level of activity are included below: Direct materials $10.00 Direct labor 4.50 Variable manufacturing 2.30 overhead Fixed manufacturing overhead 5.00 ($300,000 total) Variable selling expenses 1.20 Fixed selling expenses 3.50 ($210,000 total) Total cost per unit $26.50 The CFO of Lynbrook would like your response to the following three (3) independent situations to present to the management team early next week. Situation #1 Assume that Lynbrook has sufficient capacity to produce 90,000 Wrens each year without any increase in fixed manufacturing overhead costs. The company could increase its unit…