An analysis of the accounts of Crane Company reveals the following manufacturing cost data for the month ended Septembe 30, 2020. Inventories Raw materials Work in process Finished goods Beginning $ 12,100 7,600 10,100 Ending $ 11,400 5,100 12,100 Costs incurred: raw materials purchases $ 62,600, direct labor $ 51,100, manufacturing overhead $ 26,250. The specific overhead costs were: indirect labor $ 6,600, factory insurance $ 5,100, machinery depreciation $ 6,100, machinery repairs $ 2,900, factory utilities $ 3,700, miscellaneous factory costs $ 1,850. Assume that all raw materials used were direct materials. Crane Company is considering the purchase of a new automated assembly line for its factory. The purchase would result in several changes in Crane' cost structure. Both direct labor and indirect labor would decrease by 40%. Factory insurance would increase to $ 8,100, machinery depreciation would double, machinery repairs would decrease to $ 510, utilities would decrease to $ 2,600 and miscellaneous factory costs would increase to $ 1,950. Materials usage would remain at current level hedul September 2020 using the new ata. Analyze the new purchase by preparing a cost of goods manufac Crane Co. Cost of Goods Manufacturing Schedule choose the accounting period For the Month Ended September 30, 2020For the Year Ended September 30, 2020Septembe
An analysis of the accounts of Crane Company reveals the following manufacturing cost data for the month ended Septembe 30, 2020. Inventories Raw materials Work in process Finished goods Beginning $ 12,100 7,600 10,100 Ending $ 11,400 5,100 12,100 Costs incurred: raw materials purchases $ 62,600, direct labor $ 51,100, manufacturing overhead $ 26,250. The specific overhead costs were: indirect labor $ 6,600, factory insurance $ 5,100, machinery depreciation $ 6,100, machinery repairs $ 2,900, factory utilities $ 3,700, miscellaneous factory costs $ 1,850. Assume that all raw materials used were direct materials. Crane Company is considering the purchase of a new automated assembly line for its factory. The purchase would result in several changes in Crane' cost structure. Both direct labor and indirect labor would decrease by 40%. Factory insurance would increase to $ 8,100, machinery depreciation would double, machinery repairs would decrease to $ 510, utilities would decrease to $ 2,600 and miscellaneous factory costs would increase to $ 1,950. Materials usage would remain at current level hedul September 2020 using the new ata. Analyze the new purchase by preparing a cost of goods manufac Crane Co. Cost of Goods Manufacturing Schedule choose the accounting period For the Month Ended September 30, 2020For the Year Ended September 30, 2020Septembe
Chapter1: Financial Statements And Business Decisions
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:An analysis of the accounts of Crane Company reveals the following manufacturing cost data for the month ended September
30, 2020.
Inventories
Raw materials
Work in process
Finished goods
Beginning
$ 12,100
7,600
10,100
Ending
$ 11,400
5,100
12,100
Costs incurred: raw materials purchases $ 62,600, direct labor $ 51,100, manufacturing overhead $ 26,250. The specific
overhead costs were: indirect labor $ 6,600, factory insurance $ 5,100, machinery depreciation $ 6,100, machinery repairs $
2,900, factory utilities $ 3,700, miscellaneous factory costs $ 1,850. Assume that all raw materials used were direct materials.
Crane Company is considering the purchase of a new automated assembly line for its factory. The purchase would result in
several changes in Crane' cost structure. Both direct labor and indirect labor would decrease by 40%. Factory insurance would
increase to $ 8,100, machinery depreciation would double, machinery repairs would decrease to $ 510, utilities would
decrease to $ 2,600 and miscellaneous factory costs would increase to $ 1,950. Materials usage would remain at current levels.
Analyze the new purchase by preparing a cost of goods manufactured schedule for September 30, 2020 using the new data.
Crane Co.
Cost of Goods Manufacturing Schedule
choose the accounting period For the Month Ended September 30, 2020For the Year Ended September 30, 2020September 30, 20
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