Ambo, Inc. manufactured 50,000 kilos of compound Am in 2011 at thefollowing costs:Opening work-in-process of P88,125.Materials of P182,500 of which 90% is direct materialsLabor of P242,500 of which 93% is direct labor.Closing work-in-process of P67,500.Factory overhead is 125% of direct labor cost and includes indirect materials and indirect labor. The costof goods manufactured is:651,056692,306706,906O 727,531

Introduction The following formula is used to calculate the cost of goods manufactured:- Cost of…

Answered: Ambo, Inc. manufactured 50,000 kilos of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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rane makes Halloween costumes. The company incurred the following total costs to produce 30,700 costumes. Direct materials $235,000 Direct labor 164,000 Variable overhead 21,590 Fixed overhead 119,730 (a) Under the absorption costing method, what is the average unit product cost? Using this method, how much product cost would be recorded on the income statement if 21,900 units were sold? (Round per unit to 3 decimal places, e.g. 15.256 and product cost to 0 decimal places, e.g. 5,275.) Average unit product cost $enter a dollar amount rounded to 2 decimal places Product cost $enter a dollar amount rounded to 0 decimal places (b) Under the variable costing method, what is the average unit product cost? Using this method, how much product cost would be recorded on the income statement if 21,900 units were sold? (Round per unit to 3 decimal places, e.g. 15.256 and product cost to 0 decimal places, e.g. 5,275.) Average unit product cost…
Buren Company manufactures two products, Regular and Supreme. Buren's overhead costs consist of machining, $2,000,000; and assembling, $1,000,000. Information on the two products is: Regular Supreme Direct labor hours 10,000 15,000 Machine hours 10,000 30,000 Number of parts 90,000 160,000 Overhead applied to Supreme using traditional costing using direct labor hours is: A) $860,000. B) $1,200,000. C) $1,800,000. D) $2,140,000.
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The the third quarter records of Clemmie Corporation indicate that they incurred the following costs in that period: Direct Labor: $99,300 Factory Utilities: $47,100 Factory Property Taxes: $32,400 Direct Materials: $90,600 Administrative Expenses: $38,300 Selling Expenses: $37,200 The total of the product costs is:
Sheffield Corp. sells its product for $70 per unit. During 2016, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $15, direct labor $12, and variable overhead $1. Fixed costs are: $720,000 manufacturing overhead, and $90,000 selling and administrative expenses. The per-unit manufacturing cost under absorption costing is: a. $41 b. $28 c. $40 d. $27
Tower Mfg. allocates overhead based on machine hours. Tower estimates it will incur $200,000 of total overhead costs and use 10,000 machine hours in the coming year. During February, the Assembly department of Tower Mfg. used 375 machine hours. In addition, Tower incurred actual overhead costs as follows during February: indirect materials, $1,800; indirect labor, $5,700; depreciation on factory equipment, $8,000; and factory utilities, $500. 1. Compute the company’s predetermined overhead rate for the year. 2. Prepare journal entries to record (a) overhead applied for the Assembly department for February and (b) actual overhead costs used during February.
Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $600 and the total manufacturing overhead cost is $1,200, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2,500, which include $1,500 fixed selling and administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost? (rounded to nearest ($) value) О а. 46 Оь. 25 None of the given answers O d. 50 O e. 30
Southern Rim Parts estimates its manufacturing overhead to be $374,500 and its direct labor costs to be $1,070,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $66,000 for Job 301, $91,000 for Job 302, and $180,000 for Job 303. For the year, actual manufacturing overhead was $394,000 and total direct labor cost was $833,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates. Overhead applied in each of the inventory accounts is as follows: Work-in-process inventory $ 29,155 Finished goods inventory 87,465 Cost of goods sold 174,930 Required: Prepare an entry to prorate the under- or overapplied overhead. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) A. Transaction # General Journal Debit/Credit
During October, Company XYZ produced and sold 10,000 units of product A. At this level, the total product cost was $70,000. This included $10,000 direct materials, $20,000 direct labor and $40,000 manufacturing overhead cost, which included 20% variable manufacturing overhead cost. The selling and administrative expenses were $100,000, which included $70,000 fixed selling and administrative costs. The selling price per unit is $16. How much is the expected total contribution margin in November if the company produced and sold 11,000 units? Assume 11,000 units is within the relevant range. a. $123,200 O b. $112,200 $ 134,200 O C. •d. None of the given choices e. $101,200

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