E1.3 (LO 2), C Trak Corporation, which manufactures bicycles, incurred the following costs. $100,000 60,000 7,500 110,000 13,000 45,000 14,000 21,000 35,000 50,000 Bicycle components Depreciation on factory Property taxes on retail store Labor costs of assembly-line workers Factory supplies used Advertising expense Property taxes on factory Customer delivery expense Sales commissions Salaries paid to sales clerks Instructions a. Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period cost b. Explain the basic difference in accounting for product costs and period costs.

E1.3 (LO 2), C Trak Corporation, which manufactures bicycles, incurred the following costs. $100,000 60,000 7,500 110,000 13,000 45,000 14,000 21,000 35,000 50,000 Bicycle components Depreciation on factory Property taxes on retail store Labor costs of assembly-line workers Factory supplies used Advertising expense Property taxes on factory Customer delivery expense Sales commissions Salaries paid to sales clerks Instructions a. Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period cost b. Explain the basic difference in accounting for product costs and period costs.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter10: Accounting Systems For Manufacturing Operations

Section: Chapter Questions

Problem 10.3E: Classifying costs as factory overhead Which of the following items are properly classified as part...

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5) Buffett Company has the following information: Direct Labor Costs WIP, Ending FG, Beginning Office building depreciation DM, Ending Insurance (office) Freight-Out Utilities (plant) $420,000 $52,000 $165,000 $90,000 $35,000 $50,000 $65,000 $42,000 What is Buffett's Cost of Goods Sold? A) $1,300,000 B) $1,280,000 C) $1,260,000 D) $1,365,000 DM, Beginning Equipment depreciation Freight-In WIP, Beginning FG, Ending Indirect Labor Costs DM Purchases Insurance (plant) $32,000 $250,000 $12,000 $58,000 $145,000 $40,000 $450,000 $63,000
Revilla Corporation's manufacturing costs were as follows: Prime Costs P400,000 Straight-line depreciation of factory equipment P60,000 Straight-line depreciation of factory building P40,000 Janitor's salaries for cleaning factory premises P12,000 Salesmen's Commission based on sales P20,000 Straight-line depreciation of delivery van P15,000 1. How much of these costs should be inventoried for external reporting purposes?
E5.6 (LO 1), AP PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,000 units. Direct materials Direct labor Utilities Property taxes Indirect labor 2,100 1,000 4,500 1,900 1,100 2,400 The utilities and maintenance costs are mixed costs. The fixed components of these costs are $300 and $200, respectively. Instructions Supervisory salaries Maintenance Depreciation (straight-line) $7,500 18,000 a. Identify the above costs as variable, fixed, or mixed. b. Calculate the expected costs when production is 5,000 units. Explain assumptions underlying CVP analysis.
Classifying costs as factory overhead Which of the following items are properly classified as part of factory overhead for Caterpillar? a. Amortization of patents on new assembly process b.Consultant fees for a study of production line employee productivity C. Depreciation on Peoria. Illinois, headquarters building d.Factory supplies used in the Morganton. North Carolina, engine parts plant e.Interest expense on debt f. Plant manager's salary at Aurora, Illinois, manufacturing plant g.Properly taxes on the Danville, Kentucky, tractor tread plant h.Sales incentive fees to dealers i. Steel plate j. Vice president of finance's salary
A. Purchased P250,000 of materials. B. Used P180,000 of materials in production. C. Incurred P450,000 of direct labor wages. D. Incurred P190,000 of factory overhead. E. Transferred P760,000 of work in process to finished goods. F. Sold good P1,200,000. G. Sold goods with a cost of P675,000. H. Incurred P215,000 of selling expenses. I. Incurrent P125,000 of administrative expenses. Requirements: 1. Prepare income statement. 2. Prepare the inventory portion of the balance sheet.
A. Purchased P250,000 of materials. B. Used P180,000 of materials in production. C. Incurred P450,000 of direct labor wages. D. Incurred P190,000 of factory overhead. E. Transferred P760,000 of work in process to finished goods. F. Sold good P1,200,000. G. Sold goods with a cost of P675,000. H. Incurred P215,000 of selling expenses. I. Incurrent P125,000 of administrative expenses. Required: Prepare the inventory portion of the balance sheet.
Ryan Corporation incurred the following costs while manufacturing its product. Materials used in product Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used Instructions $100,000 60,000 7,500 110,000 13,000 Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $45,000 14,000 21,000 35,000 50,000 (a) Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs. (b) Explain the basic difference in accounting for product costs and period costs.
Tamarisk Corporation incurred the following costs during 2022. Direct materials used in product Depreciation on factory Property taxes on store Labor costs of assembly-line workers Factory supplies used (a) * Your answer is incorrect. Compute cost of goods manufactured. $115,200 Cost of goods manufactured 57,600 7,200 105,600 22,400 Advertising expense Property taxes on factory Delivery expense Sales commissions Salaries paid to sales clerks Work in process inventory was $11,600 at January 1 and $14,800 at December 31. Finished goods inventory was $57,600 at January 1 and $43,700 at December 31. $43,200 314400 13,600 20,000 33,600 48,000
5. The following data were taken from the records of CBD manufacturing company:> Depreciation on factory equipment, P1,000> Depreciation on sales office, P500> Advertising, P7,000> Shipping charges (Freight-out), P3,000> Wages of production workers, P28,000> Raw materials used, P47,000> Sales salaries and commissions, P10,000> Factory rent, P2,000> Factory insurance, P500> Materials handling, P1,500> Administrative salaries, P2,000 Based upon this information, the manufacturing cost incurred during the year was:A. P18,500B. P80,500C. P83,000D. P80,000
Trak Corporation incurred the following costs while manufacturing its bicycles. Bicycle components $100,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 14,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line workers 110,000 Sales commissions 35,000 Factory supplies used 13,000 Salaries paid to sales clerks 50,000 (a)Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs. Bicycle components Period CostsDirect LaborDirect MaterialsManufacturing Overhead Depreciation on plant Direct MaterialsDirect LaborManufacturing OverheadPeriod Costs Property taxes on store Manufacturing OverheadPeriod CostsDirect MaterialsDirect Labor Labor costs of assembly-line workers Period CostsDirect LaborDirect MaterialsManufacturing Overhead Factory supplies used Direct LaborDirect MaterialsPeriod…
Steuben Company produces dog houses. During the current year, Steuben Company Incurred the following costs: Rent on manufacturing facility Office manager's salary Wages of factory machine operators Depreciation on manufacturing equipment Multiple Choice Insurance and taxes on selling and administrative offices Direct materials purchased and used Based on the above information, the amount of perlod costs shown on Steuben's Income statement is: O $18,000 $96,000 $224,000 $ 128,000 78,000 58,000 $78,000 28,000 18,000 88,000
ABC Ltd. incurred the following costs while manufacturing its product. Property taxes on store 7500 Advertising expense 45000 Delivery expense 21000 Sales commissions 35000 Salaries paid to sales clerks 50000 Sales revenue 445000 Sales Discount 15000 COGS 337900 Work in process inventory was 12000 at January 1 and 15500 at December 31. Finished goods inventory was 60000 at January 1 and 45600 at December 31. Compute gross profit.Single line text.