FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Related questions
Concept explainers
Question
![Ch 6)
Required information
[The following information applies to the questions displayed below.]
Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat.
Costs
1. Plastic for casing-$21,000
2. Wages of assembly workers-$85,000
3. Property taxes on factory-$6,000
4. Office accounting salaries-$32,000
5. Drum stands-$43,000
6. Rent cost of office for accountants-$36,000
7. Office management salaries-$160,000
8. Annual fee for factory maintenance-$16,000
9. Sales commissions-$18,000
10. Factory machinery depreciation, straight-line-$47,000
Costs
Required:
1. Classify each cost and its amount as either product or period. The first cost is completed as an example.
1. Plastic for casing
2. Wages of assembly workers
3. Property taxes on factory
4. Office accounting salaries
5. Drum stands
6. Rent cost of office for accountants
7. Office management salaries
8. Annual fee for factory maintenance
9. Sales commissions
10. Factory machinery depreciation, straight-line
Saved
$
Product
21,000
Period](https://content.bartleby.com/qna-images/question/2d48e8bf-b61f-4eb4-ad84-db795a854361/a9a6c145-52ed-4e32-ae29-2014160ce5a9/wkeqgnb_processed.jpeg)
Transcribed Image Text:Ch 6)
Required information
[The following information applies to the questions displayed below.]
Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat.
Costs
1. Plastic for casing-$21,000
2. Wages of assembly workers-$85,000
3. Property taxes on factory-$6,000
4. Office accounting salaries-$32,000
5. Drum stands-$43,000
6. Rent cost of office for accountants-$36,000
7. Office management salaries-$160,000
8. Annual fee for factory maintenance-$16,000
9. Sales commissions-$18,000
10. Factory machinery depreciation, straight-line-$47,000
Costs
Required:
1. Classify each cost and its amount as either product or period. The first cost is completed as an example.
1. Plastic for casing
2. Wages of assembly workers
3. Property taxes on factory
4. Office accounting salaries
5. Drum stands
6. Rent cost of office for accountants
7. Office management salaries
8. Annual fee for factory maintenance
9. Sales commissions
10. Factory machinery depreciation, straight-line
Saved
$
Product
21,000
Period
![Required information
[The following information applies to the questions displayed below.]
Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat.
1. Plastic for casing-$21,000
2. Wages of assembly workers-$85,000
3. Property taxes on factory-$6,000
4. Office accounting salaries-$32,000
Costs
5. Drum stands-$43,000
6. Rent cost of office for accountants-$36,000
7. Office management salaries-$160,000
8. Annual fee for factory maintenance-$16,000
9. Sales commissions-$18,000
10. Factory machinery depreciation, straight-line-$47,000
2. Compute the average manufacturing cost per drum set.
Calculation of Manufacturing Cost per Drum Set
Manufacturing costs
Total manufacturing costs](https://content.bartleby.com/qna-images/question/2d48e8bf-b61f-4eb4-ad84-db795a854361/a9a6c145-52ed-4e32-ae29-2014160ce5a9/bzosy5w_processed.jpeg)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat.
1. Plastic for casing-$21,000
2. Wages of assembly workers-$85,000
3. Property taxes on factory-$6,000
4. Office accounting salaries-$32,000
Costs
5. Drum stands-$43,000
6. Rent cost of office for accountants-$36,000
7. Office management salaries-$160,000
8. Annual fee for factory maintenance-$16,000
9. Sales commissions-$18,000
10. Factory machinery depreciation, straight-line-$47,000
2. Compute the average manufacturing cost per drum set.
Calculation of Manufacturing Cost per Drum Set
Manufacturing costs
Total manufacturing costs
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 3 steps
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
- ABC Co. produces washers and dryers in an assembly-line process. Labor costs incurred during a recent period were: corporate executives, $500,000; assembly-line workers, $180,000; security guards, $45,000; and plant supervisor, $110,000. The total of ABC’s direct labor cost was: a. $235,000 b. $110,000 c. $155,000 d. $180,000arrow_forwardCraftmore Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Production Activity Indirect Labor Indirect Materials Other Overhead Grinding $ 310,000 Polishing $ 145,000 Product modification 550,000 Providing power $ 260,000 System calibration 560,000 Additional information on the drivers for its production activities follows. Grinding 17,000 machine hours Polishing 17,000 machine hours Product modification 1,500 engineering hours Providing power 15,000 direct labor hours System calibration 200 batches Problem C-1A Part 3 Job 3175 Job 4286 Number of units 150 units 1,875 units Machine hours 350 MH 3,500 MH Engineering hours 30 eng. hours 30 eng. hours Batches 10 batches 30 batches Direct labor hours 520 DLH 4,680 DLHarrow_forwardThe following cost data were taken from the records of A Manufacturing Company: Depreciation on factory equipment, P 1,000; Depreciation on sales office, P 500; Advertising, P 7,000; Freight-out (shipping), P 3,000; Wages of production workers, P 28,000; Raw materials used, P 47,000; Sales salaries and commissions, P 10,000; Factory rent, P 2,000; Factory insurance, P 500; Materials handling, P 1,500; administrative salaries, P 2,000. Required: Total manufacturing costs *arrow_forward
- Randall Company manufactures chocolate bars. The following were among Randall's manufacturing costs during the current year: Wages Machine operators $ 300,000 Selling and administrative personnel $ 75,000 Materials used Lubricant for oiling machinery $ 25,000 Cocoa, sugar, and other raw materials $ 250,000 Packaging materials $ 190,000 Randall's direct materials amounted to:arrow_forwardVignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: Cost of clay used in production $ 75,000 Wages paid to the workers who paint the figurines $ 86,000 Wages paid to the sales manager's secretary $ 38,000 Cost of junk mail advertising $ 55,000 What is the total of the product costs above? $179,000 $93,000 $161,000 $0arrow_forwardAndy’s Water Pets Inc. makes 100-gallon plexiglass aquariums. They reported the following financial information for last year: Direct labor: 9,000 hours @ $20 per hr. Production manager salary: $75,000 Factory rent: $36,000 Equipment maintenance: $15,000 (considered a variable expense) Equipment depreciation: $15,000 Production for the year: 12,000 units Total Revenue: $1,500,000 Total aquariums sold during the period: 15,000 units Operating Income under variable costing (after non-production expenses): $306,000 Assume that the fixed costs were the same on a per-unit basis during the prior period.What would Operating Income be under absorption costing? (Round per-unit costs to the nearest cent.) Select one: a. $341,235 b. None of these options are correct. c. $270,765 d. $337,500 e. $274,500arrow_forward
- Given the following data for ABC Company, calculate (A) cost of goods manufactured and (B) total manufacturing costs : Direct materials used $120,000 Beginning work in process $20,000 Direct labour 100,000 Ending work in process 10,000 Manufacturing overhead 150,000 Beginning finished goods 25,000 Operating expenses 175,000 Ending finished goods 15,000arrow_forwardhelp mearrow_forward8arrow_forward
arrow_back_ios
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