17. Calculate the prime costs and conversion costs if a company incurs the following to produce wine glasses: $4,000 for molten glass, $15,000 paid to employees who create the glasses, and $2,000 paid to employees who repair equipment used in the production facilities.
17. Calculate the prime costs and conversion costs if a company incurs the following to produce wine glasses: $4,000 for molten glass, $15,000 paid to employees who create the glasses, and $2,000 paid to employees who repair equipment used in the production facilities.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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![17. Calculate the prime costs and conversion costs if a company incurs the following to produce
wine glasses: $4,000 for molten glass, $15,000 paid to employees who create the glasses, and
$2,000 paid to employees who repair equipment used in the production facilities.
28. As of January 1, 20Y5, Tippy Cup Co. had a balance of $15,000 for raw materials inventory.
The company's ending balance of raw materials inventory totaled $13,900. Every four months,
the company purchases 250 pounds of raw materials at $25 a pound. Calculate the cost of direct
materials used for the year.
29. Tippy Cup Co. also incurred $10,550 for factory overhead and 250 hours of direct labor at
$10.30 per hour. Using the cost of direct materials used calculated in Exercise 28, determine the
total manufacturing costs incurred for the year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3335b9b-0493-4efc-a684-e12e6a5efc30%2Fd7dc1fed-2746-4e5e-89f3-e75784db6887%2Fbibdkpo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:17. Calculate the prime costs and conversion costs if a company incurs the following to produce
wine glasses: $4,000 for molten glass, $15,000 paid to employees who create the glasses, and
$2,000 paid to employees who repair equipment used in the production facilities.
28. As of January 1, 20Y5, Tippy Cup Co. had a balance of $15,000 for raw materials inventory.
The company's ending balance of raw materials inventory totaled $13,900. Every four months,
the company purchases 250 pounds of raw materials at $25 a pound. Calculate the cost of direct
materials used for the year.
29. Tippy Cup Co. also incurred $10,550 for factory overhead and 250 hours of direct labor at
$10.30 per hour. Using the cost of direct materials used calculated in Exercise 28, determine the
total manufacturing costs incurred for the year.
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