Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 10, Problem 3ATC
a.
To determine
Explain whether the cost incurred for manufacturing the products of Company S is primarily designed to meet the needs of internal or external needs.
b.
To determine
Whether Company S treats handling cost and shipping cost as non-product or product costs.
c
To determine
Whether Company S treats promotion and advertising costs as non-product or product costs.
d.
To determine
Identify the categories of inventory reported by Company S in its annual report.
e.
To determine
The cost of land owned by Company S, and the cost of machinery and equipment.
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Cost Department Allocations
In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $48,108, and the Purchasing Department had expenses of $25,080 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:
Line Item Description
Residential
Commercial
Government Contract
Sales
$524,000
$695,000
$1,595,000
Number of employees:
Weekly payroll (52 weeks per year)
115
80
85
Monthly payroll
38
49
36
Number of purchase requisitions per year
2,400
1,700
1,600
Required:
a. Determine the total amount of payroll checks and purchase requisitions processed per year by the…
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References
Mc
Graw
Hill
E2-21 (Algo) Calculating Missing Amounts and Cost of Goods Manufactured and Sold [LO 2-3, 2-4, 2-5,
2-6]
For each of the following independent cases (1 to 4), compute the missing values.
Note: Enter all amounts as positive values.
d document.pdf
Beginning raw materials
Raw materials purchases
Indirect materials issued
Ending raw materials
Direct materials used
Direct labor
Manufacturing overhead applied
Total current manufacturing costs
Beginning work in process
Ending work in process
Cost of goods manufactured
Beginning finished goods
Ending finished goods
Cost of goods sold
A
Case 1
$
5,400
51,000
800
1,800
29,000
55,000
47,000
130,000
75,000
71,000
Case 2
11,550
2,200
2,350
14,500
39,350
82,600
38,600
74,800
30,600
79,000
ngageNOWv2 | Online teachin X +
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Income Statement for a Manufacturing Company
Two items are omitted from each of the following three lists of cost of goods sold data from a manufacturing company income statement.
Determine the amounts of the missing items, identifying them by letter.
$60,000
$19,800
Finished goods inventory, June 1
Cost of goods manufactured
(e)
69,300
270,000
(c)
516
(a) $188,100 $108,900
Cost of finished goods available for sale
Finished goods inventory, June 30
Cost of goods sold
64,000
39,500
(f)
(b)
(d) $100,200
a.
$
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d.
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f.
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Chapter 10 Solutions
Survey Of Accounting
Ch. 10 - 1. What are some differences between financial and...Ch. 10 - 2. What does the value-added principle mean as it...Ch. 10 - 4. How does product costing used in financial...Ch. 10 - 5. What does the statement costs can be assets or...Ch. 10 - 6. Why are the salaries of production workers...Ch. 10 - 7. How do product costs affect the financial...Ch. 10 - 8. What is an indirect cost? Provide examples of...Ch. 10 - 9. How does a product cost differ from a selling,...Ch. 10 - 10. Why is cost classification important to...Ch. 10 - 11. What is cost allocation? Give an example of a...
Ch. 10 - 13. What are some of the common ethical conflicts...Ch. 10 - 14. What costs should be considered in determining...Ch. 10 - 15. What is a just-in-time (JIT) inventory system?...Ch. 10 - Prob. 14QCh. 10 - Prob. 15QCh. 10 - Prob. 16QCh. 10 - Prob. 17QCh. 10 - Prob. 18QCh. 10 - Prob. 19QCh. 10 - Prob. 1ECh. 10 - Exercise 1-2A Identifying product versus selling,...Ch. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Exercise 1-6A Identifying product versus SGA costs...Ch. 10 - LO 1-3 Exercise 1-7A Recording product versus SGA...Ch. 10 - Prob. 8ECh. 10 - LO 1-4 Exercise 1-9A Upstream, midstream, and...Ch. 10 - Prob. 10ECh. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Cost of goods manufactured and sold The following...Ch. 10 - Prob. 15ECh. 10 - Exercise 1-14A Using JIT to minimize waste and...Ch. 10 - Prob. 17ECh. 10 - Prob. 18ECh. 10 - Prob. 19ECh. 10 - Prob. 20ECh. 10 - Problem 1-19A Characteristics of financial versus...Ch. 10 - Prob. 22PCh. 10 - Problem 1-21A Effect of product versus period...Ch. 10 - Problem 1-22A Product versus SGA costs The...Ch. 10 - Prob. 25PCh. 10 - Prob. 26PCh. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 1ATCCh. 10 - Prob. 2ATCCh. 10 - Prob. 3ATCCh. 10 - Prob. 4ATCCh. 10 - Ethical Dilemma Product cost versus selling and...
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