The following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc. Evaluate and correct this report. Marching Ants Inc.Manufacturing CostsFor the Quarter Ended June 30Materials used in production (Including$56,200 of Indirect materials)...$ 607,500Direct labor (including $84,400 maintenance salaries)...562,500Factory overhead:Supervisor salarles...Heat, light, and power...517,500140,650Sales salaries....348,750Promotional expenses....Insurance and property taxes-plant.....Insurance and property taxes-corporate offices...Depreciation-plant and equipment...Depreciation-corporate offices..Total, ...315,000151,900219,400123,75090,000$3,076,950

Manufacturing cost:-It include direct and indirect cost related to the production of the goods. It…

Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Materials used In production (Including $56,200 of Indirect materials)... Direct labor (including $84,400 maintenance salaries).... $ 607,500 562,500 Factory overhead: Supervisor salaries... Heat, light, and power.... 517,500 140,650 Sales salaries..... 348,750 Promotional expenses.. Insurance and property taxes-plant....... Insurance and property taxes-corporate offices... Depreciation-plant and equipment.. 315,000 151,900 219,400 123,750 Depreciation-corporate offices... Total,.. 90,000 $3,076,950 .... ...

Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Materials used In production (Including $56,200 of Indirect materials)... Direct labor (including $84,400 maintenance salaries).... $ 607,500 562,500 Factory overhead: Supervisor salaries... Heat, light, and power.... 517,500 140,650 Sales salaries..... 348,750 Promotional expenses.. Insurance and property taxes-plant....... Insurance and property taxes-corporate offices... Depreciation-plant and equipment.. 315,000 151,900 219,400 123,750 Depreciation-corporate offices... Total,.. 90,000 $3,076,950 .... ...

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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Job order cost; journal entries; profit analysisSpokane Manufacturing Co. obtained the following informationfrom its records for the month of July: Jobs Completed and Sold230 320 560Direct materials cost . . . . . . . . . . . . . . . . . . $ 25,000 $ 15,000 $ 29,000Direct labor cost ...................... 70,000 60,000 55,000Factory overhead . . . . . ................ 50,000 40,000 63,000Units manufactured . . . . . . . . . . . . . . . . . . . 10,000 5,000 14,000Selling price .......................... 152,000 120,000 175,250Required:1. Prepare, in summary form, the journal entries that wouldhave been made during the month to record the distributionof materials, labor, and overhead costs; the completion of thejobs; and the sale of the jobs.2. Prepare schedules showing the gross profit or loss for Julyfor the following:a. The business as a whole.b. Each job completed and sold.c. Each unit manufactured and sold. (Round to the nearestcent.)
Estimating costs based on behavior patterns The following informationprovides the amount of cost incurred in August for the cost items indicated. DuringAugust, 8,000 units of the firm’s single product were manufactured.Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $41,600Factory depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,500Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,200Production supervisor’s salary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,100Computer rental expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,200Maintenance supplies used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800Required:a. How much cost would you expect to be incurred for each of these itemsduring September when 9,600 units of the product are planned for production?b. Calculate the average total…
K Rios Corporation reports costs for the year as follows: Direct Materials Used Wages to Line Workers Office Rent Indirect Materials Used How much is the total product costs for the year? A. $605,000 OB. $1,155,000 OC. $550,000 OD. $1,199,500 $430,000 120,000 44,500 605,000
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services XYZ industries applies overhead based on direct labor cost. The following information was available for the last year: Actual manufacturing overhead OMR50,000; Underapplied manufacturing overhead OMR10,400; Actual Prime cost OMR52,000; Actual Direct material cost OMR19,000; Estimated direct labor cost OMR41,000 overhead for the year? What was the estimated man turi Select one: O a. OMR49,200 O b.OMR39,600 O c. None of the answers given O d. OMR46,800 e OMRS1,600 ge Next page
The following are ABC co's production cost for the month of October: Direct Materials P100,000 Direct Labor 90,000 Factory Overhead 4,000 1. The total manufacturing cost? 2. The prime cost? 3. The conversion cost? 4. The cost than can traced to specific product in production process?
Job order costing Double Corporation is a manufacturer that uses job-order costing. On January 1, the beginning of its fiscal year, the company’s inventory balances were as follows: Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P20,000 Work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .P15,000 Finished goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P30,000 The company applies overhead cost to jobs on the basis of machine-hours worked. For the current year, the company’s predetermined overhead rate was based on a cost formula that estimated P450,000 of total manufacturing overhead for an estimated activity level of 75,000 machine hours. The following transactions were recorded for the year: a. Raw materials were purchased on account, P410,000. b. Raw materials were requisitioned for use in production, P380,000 (P360,000 direct materials and P20,000 indirect materials). c. The following costs were…
Company produces a single product. Manufacturing overhead costs are applied to products on the basis of direct labor hours. Budget for current year: Denominator activity (direct labor-hours) 6,000 Variable manufacturing overhead cost $21,000 Fixed manufacturing overhead cost $18,000 The standard cost card for the product follows: Direct materials............................................... 2.5 ounces at $20 per ounce Direct labor..................................................... 1.4 hours at $12.50 per hour Variable manufacturing overhead.................. 1.4 hours at $3.5 per hour The following data are available for October: · 3,750 units of compound were produced during the month. · There was no beginning direct materials inventory. · The ending direct materials inventory was 2,000 ounces. · Direct materials purchased: 12,000 ounces for $225,000. · Direct labor hours worked:…
Job order costing Double Corporation is a manufacturer that uses job-order costing. On January 1, the beginning of its fiscal year, the company’s inventory balances were as follows: Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P20,000 Work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .P15,000 Finished goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P30,000 The company applies overhead cost to jobs on the basis of machine-hours worked. For the current year, the company’s predetermined overhead rate was based on a cost formula that estimated P450,000 of total manufacturing overhead for an estimated activity level of 75,000 machine hours. The following transactions were recorded for the year: a. Raw materials were purchased on account, P410,000. b. Raw materials were requisitioned for use in production, P380,000 (P360,000 direct materials and P20,000 indirect materials). c. The following costs were…
Data table Direct materials.. $ 18,000 Direct labor 3,200 Variable manufacturing overhead..... 2,340 6,700 Fixed manufacturing overhead $ 30,240 Total manufacturing costs Cost per pair ($30,240 ÷ 1,890) $ 16.00 ... %24 %24
Please solve this MCQs The following costs were incurred in May: Direct materials $ 43,100 Direct labor $ 24,800 Manufacturing overhead $ 18,100 Selling expenses $ 20,300 Administrative expense $ 28,700 Prime costs during the month totaled: $135,000 $86,000 $42,900 $67,900