ABD Company manufactures wooden rocking chairs. ABD identified the following three material costs in its production process for July: PhP5,000,000 for springs for the rocking mechanism; two springs at a cost of PhP500 each are used in each chair; PhP85,000 for glue used as needed from one-gallon containers; and PhP25,000 for stain used to touch up spots on the chairs. How much is the total cost that should have been assigned to indirect materials for July? Show the solution.
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ABD Company manufactures wooden rocking chairs. ABD identified the following three material costs in its production process for July: PhP5,000,000 for springs for the rocking mechanism; two springs at a cost of PhP500 each are used in each chair; PhP85,000 for glue used as needed from one-gallon containers; and PhP25,000 for stain used to touch up spots on the chairs. How much is the total cost that should have been assigned to indirect materials for July? Show the solution.
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- Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?Mark Corp. makes a chair with the following standard costs for direct materials and direct labor: Direct materials: 2 meters @ P3.25 per meter P6.50 Direct labor: 0.40 hours @ P12 per hour P4.80 During the month of December, 25,000 units of chairs were produced. The costs related to the production of these chairs were as follows: Direct materials purchased 60,000 meters @ P3.15 per meter Direct materials used in the production 52,500 meters Direct labor 9,875 hours @ P12.20 per hour The standard cost variances for direct materials and direct labor are as follows: Labor Efficiency Variance 124 hours @ P12 per hour 1,500 F Labor Rate Variance 9,875 hours @ PO.20 per hour 1,975 U Material Price Variance 60,000 meters @ PO.10 per meter 6,000 F Material Quantity Variance 2,500 meters @ P3.25 per meter 8,125 U Prepare the journal entries to record the purchased of materials, used of materials and labor incurrence.Martinez Products manufactures a line of desk chairs. Martinez's production operations are divided into two departments — Department 1 and Department 2. The company uses a process costing system. Martinez incurred the following costs during the year to produce 26,300 chairs: Department 1 $860,500 Department 2 $295,000 If Martinez sells 22,700 chairs during the year, what will be the cost per chair produced? (Round your answer to two decimal places.) A. $37.91 B. $50.90 C. $43.94 D. 32.72
- The Household Company has established standard costs for the cabinet department, in which one size of MX cabinet is made. The standard costs of producing one of these MX cabinets are shown below: Direct material: lumber 50 board feet at P4 200 Direct labor: 8 hours at P10 80 Overhead costs: Variable – 8 hours at P5 40 Fixed – 8 hours at P3 24 Total standard unit cost 344 During June 2019, 500 of these cabinets were produced. The cost of operations during the month is shown below. Direct material purchased: 30,000 board feet at P4.10 123000 Direct materials used: 24,000 board feet Direct labor: 4,200 hours at P9.50 39,900 Overhead costs: Variable costs – P22,000 Fixed costs – P11,000 The budgeted overhead for the cabinet department…Martinez Products manufactures a line of desk chairs. Martinez's production operations are divided into two departments — Department 1 and Department 2. The company uses a process costing system. Martinez incurred the following costs during the year to produce 25,700 chairs: Department 1 $863,500 Department 2 $287,000 If Martinez sells 22,600 chairs during the year, what will be the cost per chair produced? (Round your answer to two decimal places.) A. $38.21 B. $44.77 C. $33.60 D. $50.911) Syarikat Sabah prepares lumber for companies who manufacture furniture (a) The main product is finished lumber with a byproduct of wood shavings. The byproduct is sold to plywood manufacturers. For July, the manufacturing process incurred RM332,000 in total costs. 80,000 board feet of lumber were produced and sold along with 6,800 kg of shavings. The finished lumber sold for RM6.00 per board foot and the shavings sold for RM0.60 a kg. There were no beginning or ending inventories. Required: Prepare two statements of financial position as at 31 December 2019 showing the byproduct as a cost reduction during production, and as a revenue item when sold each (b) Distinguish and briefly discuss the merits [or demerits] between the two principal methods of accounting for byproducts: the production byproduct method and the sale byproduct method. (c) Identify the revenue or expense amounts necessary to make a sell-or-process-further decision and the reasons behind them (d) Identify the…
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- Vintage Audio Inc. manufactures audio speakers. Each speaker requires $96 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period: Speaker assembly cell, estimated costs: Labor Depreciation Supplies Power Total cell costs for the period The operating plan calls for 195 operating hours for the period. Each speaker requires 12 minutes of cell process time. The unit selling price for ach speaker is $260. During the period, the following transactions occurred: 1. Purchased materials to produce 650 speaker units. 2. Applied conversion costs to production of 620 speaker units. 3. Completed and transferred 590 speaker units to finished goods. 4. Sold 565 speaker units. There were no inventories at the beginning of the period. a. Journalize the summary transactions (1)-(4) for the period. Round the per unit cost to the nearest cent and use in subsequent computations. If an amount box does not require an entry, leave it blank.…The Park Avenue Corporation currently makes a part required in its finished product. The company uses 2,170 units of this part annually. Park Avenue Corp has been approached by a vendor to provide this part for $13.08 each. The following cost information is provided Direct Materials per unit $5.26 Direct Labor per unit $7.30 Variable Factory Overhead per unit $2.50 Fixed Factory Overhead per unit $7.50 How much would Park Avenue Corporation save by having the vendor make the part, instead of making it themselves? Enter your answer rounded to the nearest whole number. Don't enter dollar signs or commas.Sardi Incorporated is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 12,600 of the components each year. The unit product cost of the component according to the company's cost accounting system is given as follows: Direct materials $ 8.40 Direct labor 5.40 Variable manufacturing overhead 1.20 Fixed manufacturing overhead 3.20 Unit product cost $ 18.20 Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 35% is avoidable if the component were bought from the outside supplier. In addition, making the component uses 1 minutes on the machine that is the company's current constraint. If the component were bought, time would be freed up for use on another product that requires 2 minutes on this machine and that has a contribution margin of $4.80 per unit. When deciding whether to make or buy the component, what cost of making the component should be compared to the price of buying the…