Concept explainers
(a)
Introduction:
Manufacturing
To compute:
The total conversion cost for W Co.
(b)
Introduction:
Manufacturing overhead includes all the factory related expenses that are incurred when a product is manufactured. It includes all the indirect cost related to the production process.
To compute:
TheTotal manufacturing overhead for P Trails Co.
(c)
Introduction:
Manufacturing overhead includes all the factory related expenses that are incurred when a product is manufactured. It includes all the indirect cost related to the production process.
To compute:
To calculate the Total conversion cost for C Inc.
(d)
Introduction:
Manufacturing overhead includes all the factory related expenses that are incurred when a product is manufactured. It includes all the indirect cost related to the production process.
To compute:
The total manufacturing overhead for S Co.
Trending nowThis is a popular solution!
Chapter 3 Solutions
Managerial Accounting
- Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?arrow_forwardClassifying Costs The following is a list of costs incurred by several businesses. Classify each of the following costs as product costs or period costs. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Costs Classification a. Salary of quality control supervisor b. Packing supplies for products sold. These supplies are a very small portion of the total cost of the product. c. Factory operating supplies d. Depreciation of factory equipment e. Hourly wages of warehouse laborers f. Wages of company controller’s secretary g. Maintenance and repair costs for factory equipment h. Paper used by commercial printer i. Entertainment expenses for sales representatives j. Protective glasses for factory machine operators k. Sales commissions l. Cost of hogs for meat processor m. Cost of…arrow_forwardCost of Goods Sold, Cost of Goods Manufactured Woodfall Company has the following information for June: Cost of direct materials used in production Direct labor Factory overhead Work in process inventory, June 11 Work in process inventory, June 30 Finished goods inventory, June 1 Finished goods inventory, June 30 Costs Type a. For June, determine the cost of goods manufactured. Using the data given, prepare a statement of Cost of Goods Manufactured. Woodfall Company Statement of Cost of Goods Manufactured Total manufacturing costs incurred in June Total manufacturing costs $58,000 69,000 24,000 48,000 42,000 cost of goods manufactured 30,000 21,000 Amount Amount 0000arrow_forward
- Cushing, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. What was last years per unit product cost? a. 1.39 b. 4.40 c. 4.43 d. 3.01arrow_forwardThe following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment: Determine the following amounts: a. Cost of goods sold b. Direct materials cost c. Direct labor costarrow_forwardThe following data appeared in the accounting records of Craig Manufacturing Inc., which uses the weighted average cost method: Case 1All materials are added at the beginning of the process, and labor and factory overhead are added evenly throughout the process. Case 2One-half of the materials are added at the start of the manufacturing process, and the balance of the materials is added when the units are one-half completed. Labor and factory overhead are applied evenly during the process. Make the following computations for each case: a. Unit cost of materials, labor, and factory overhead for the month b. Cost of the units finished and transferred during the month c. Cost of the units in process at the end of the montharrow_forward
- A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the service departments. The production departments are Assembly and Machining. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The building maintenance department services all departments of the company, and its costs are allocated using floor space occupied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.arrow_forwardCost of Direct Materials, Cost of Goods Manufactured, Cost of Goods Sold Bisby Company manufactures fishing rods. At the beginning of July, the following information was supplied by its accountant: During July, the direct labor cost was 43,500, raw materials purchases were 64,000, and the total overhead cost was 108,750. The inventories at the end of July were: Required: 1. What is the cost of the direct materials used in production during July? 2. What is the cost of goods manufactured for July? 3. What is the cost of goods sold for July?arrow_forwardUse the following information for Brief Exercises 4-27 and 4-28: Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to Quillen: Brief Exercises 4-27 (Appendix 4B) Assigning Support Department Costs by Using the Direct Method Refer to the information for Quillen Company above. Required: 1. Calculate the cost assignment ratios to be used under the direct method for Departments S1 and S2. (Note: Each support department will have two ratiosone for Cutting and the other for Sewing.) 2. Allocate the support department costs to the producing departments by using the direct method.arrow_forward
- Adam Inc.s records for May include the following information: A. What are Adams standard labor hours for the units made? B. What is Adams total standard labor cost for the units made?arrow_forwardThe following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?arrow_forwardFriedman Company uses JIT manufacturing. There are several manufacturing cells set up within one of its factories. One of the cells makes stands for flat-screen televisions. The cost of production for the month of April is given below. During May, 30,000 stands were produced and sold. Required: 1. Explain why process costing can be used for computing the cost of production for the stands. 2. Calculate the cost per unit for a stand. 3. Explain how activity-based costing can be used to determine the overhead assigned to the cell.arrow_forward
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubPrinciples of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning