Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Question
Chapter 2, Problem 2.21AE
1.
To determine
To classify & compute: Each costs into direct material, direct labour, indirect materials, other manufacturing
2.
To determine
To compute: Total manufacturing overhead cost.
3.
To determine
To compute: Total product costs.
4.
To determine
To compute: Total prime cost.
5.
To determine
To compute: Total conversion cost.
6.
To determine
To compute: Total period cost.
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Students have asked these similar questions
A company manufactures skateboards. Compute the total amount of product costs from the follo
Cost item
a. Wheels, $15,000
b. Wooden boards, $22,000
c. Advertising costs, $5,000
d. Insurance on factory, $6,000
e. Factory equipment depreciation, $8,000
f. Assembly worker wages, $11,000
g. Salesperson salaries, $16,000
h. Office manager's salary, $7,000
i. Factory utilities, $3,000
The Casual Furniture Company manufactures outdoor furniture and incurred the following costs during the month of January:
Timber
Paint
Glue
Wages-assembly personnel
$25 000
$5 000
$500
$20 000
Wages-factory supervisor
$3 500
Factory cleaner's wages
$2.000
Sales commissions
$10 000
Administrative staff salaries
$4.000
Depreciation-factory equipment
$3.000
Depreciation-sales office equipment $1.000
Utilities, insurance-factory
$6.000
Utilities, insurance-sales office
$2.000
Advertising
$8.000
Total costs
$90 000
The product costs are:
a. $90 000
O b. $65.000
O c. $63 000
Od. $83 000
Instruction: Solve the given problem. Show your solution.
The following cost data were taken from the records of JGG manufacturing company:
Depreciation expense - Equipment, 60% of which are incurred
in the plant equipment
1,500
Depreciation expense in the retail outlet
500
Salaries of cashier in the retail outlet
3,000
Insurance premium paid in addition to the salary of the cashier
1,000
Salaries of delivery truck driver
1,500
Wages of production workers
28,000
Raw materials used
47,000
Operating supplies used in the production
1,000
Rent expense, 40% are paid for the retail outlet
2,000
Insurance paid for the factory building
500
Administrative salaries
2,000
Instruction: Compute for the following costs:
4. Prime Costs
5. Conversion costs
6. Total product costs
7. Total period costs
Chapter 2 Solutions
Managerial Accounting (5th Edition)
Ch. 2 - (Learning Objective 1) Which of the following...Ch. 2 - (Learning Objective 2) Which of the following is...Ch. 2 - (Learning Objective 3) A cost that can be traced...Ch. 2 - (Learning Objective 4) Period costs are often...Ch. 2 - (Learning Objective 4) Conversion costs consist of...Ch. 2 - (Learning Objective 4) Which of the following is...Ch. 2 - Prob. 7QCCh. 2 - (Learning Objective 5) Which of the following...Ch. 2 - Prob. 9QCCh. 2 - Prob. 10QC
Ch. 2 - Short Exercises S2-1 Identify types of companies...Ch. 2 - Identify type of company from balance sheets...Ch. 2 - Classify costs by value chain function (Learning...Ch. 2 - Classify costs as direct or indirect (Learning...Ch. 2 - Prime costs Cost objects Product costs Assigned...Ch. 2 - Prob. 2.6SECh. 2 - Classify product costs and period costs (Learning...Ch. 2 - Classify a manufacturers costs (Learning Objective...Ch. 2 - Classify costs incurred by a dairy processing...Ch. 2 - Determine total manufacturing overhead (Learning...Ch. 2 - Prepare a retailers income statement (Learning...Ch. 2 - Compute Cost of Goods Sold for a merchandiser...Ch. 2 - Calculate direct materials used (Learning...Ch. 2 - Compute Cost of Goods Manufactured (Learning...Ch. 2 - Describe other cost terms (Learning Objectives 6...Ch. 2 - Classify costs as fixed or variable (Learning...Ch. 2 - Prob. 2.17SECh. 2 - Classify costs along the value chain for a...Ch. 2 - Classify costs along the value chain for a...Ch. 2 - Value chain and sustainability efforts (Learning...Ch. 2 - Prob. 2.21AECh. 2 - Construct an income statement using product and...Ch. 2 - Work backward to find missing amounts (Learning...Ch. 2 - Prepare a retailers income statement (Learning...Ch. 2 - Compute direct materials used and Cost of Goods...Ch. 2 - Compute Cost of Goods Manufactured and Cost of...Ch. 2 - Continues E2-26A: Prepare income statement...Ch. 2 - Determine whether information is relevant...Ch. 2 - Prob. 2.29AECh. 2 - Classify costs along the value chain for a...Ch. 2 - Classify costs along the value chain for a...Ch. 2 - Value chain and sustainability efforts (Learning...Ch. 2 - Classify and calculate a manufacturers costs...Ch. 2 - Construct an income statement using product and...Ch. 2 - Work backward to find missing amounts (Learning...Ch. 2 - Prob. 2.36BECh. 2 - Compute direct materials used and Cost of Goods...Ch. 2 - Compute Cost of Goods Manufactured and Cost of...Ch. 2 - Continues E2-38B: Prepare income statement...Ch. 2 - Determine whether information is relevant...Ch. 2 - Prob. 2.41BECh. 2 - Classify costs along the value chain (Learning...Ch. 2 - Determine ending inventory balances (Learning...Ch. 2 - Prepare income statements (Learning Objective 5)...Ch. 2 - Prob. 2.45APCh. 2 - Prob. 2.46APCh. 2 - Classify costs along the value chain (Learning...Ch. 2 - Determine ending inventory balances (Learning...Ch. 2 - Prepare income statements (Learning Objective 5)...Ch. 2 - Prob. 2.50BPCh. 2 - Prob. 2.51BPCh. 2 - Calculate operating income (Learning Objective 5)...Ch. 2 - Prob. 2.53ACT
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