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. In the introduction of its new pensieve, Dumbledore incurs the following expenses: $3,000 fordirect ceramic materials, $1,700 for office supplies, $10,000 for sales salaries, $8,100 forproduction wages, $1,200 for office depreciation, and $1,700 for production facilityutilities. Dumbledore can't believe he has to be concerned with accounting, yet he wants to know how much his company incurs for product and period costs? Also, he wants to distinguish the period costs as either selling or administrative expenses.

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. In the introduction of its new pensieve, Dumbledore incurs the following expenses: $3,000 fordirect ceramic materials, $1,700 for office supplies, $10,000 for sales salaries, $8,100 forproduction wages, $1,200 for office depreciation, and $1,700 for production facilityutilities. Dumbledore can't believe he has to be concerned with accounting, yet he wants to know how much his company incurs for product and period costs? Also, he wants to distinguish the period costs as either selling or administrative expenses.

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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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
As of January 1, 2021, 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.
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. 30. As of January 1, 2018, Tippy Cup Co.'s work in process inventory had a beginning balance of $98,750. The ending balance of work in process inventory totaled $92,350. Using the information calculated in Exercise 29, calculate the cost of goods manufactured for the year.
Road Warrior Corporation began operations early in the current year, building luxury motor homes. During the year, the company started and completed 50 motor homes at a cost of $60,000 per unit. Of these, 48 were sold for $95,000 each and two remain in finished goods inventory. In addition, the company had six partially completed units in its factory at year-end. Total costs for the year (summarized alphabetically) were as follows: $ 737,000 900,000 Direct materials used Direct labor General and administrative 500,000 expenses Income tax expense Manufacturing overhead Selling expenses 100,000 1,520,000 500,000 Instructions a. Compute the total manufacturing costs charged to work in process for the current year: Total manufacturing costs b. Compute the cost of finished goods manufactured for the current year: Cost of finished goods manufactured
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During the current month, Wacholz Company incurs the following manufacturing costs. (a) Purchased raw materials of $ 18,000 on account. (b) Incurred factory labor of $ 40,000. Of that amount, $ 31,000 relates to wages payable and $ 9,000 relates to payroll taxes payable. (c) Factory utilities of $ 3,100 are payable, prepaid factory property taxes of $ 2,700 have expired, and depreciation on the factory building is $ 9,500. Prepare journal entries for each type of manufacturing cost. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) (Purchases of raw materials on account) (b) (To record factory labor costs) (c) (To record overhead costs)
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During December of the current year, Parker Company purchased $3,500,000 raw materials. During the month, Parker incurred $2,040,000 direct labor cost and applied 80% of direct labor cost. During the same month, there were changes in inventories as follows: Increase in raw materials $100,000; Decrease in work in process $150,000 and decrease in finished goods $75,000. If the goods available for sale is $7,500,000, what is the value of finished goods at December 31? $203,000 $578,000 $78,000 $75,000
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.
The following data summarizes in part the results of operations for 2021 of Diamond Company. Of the total cost of goods manufactured for 2021, 38% was for materials used, 30% for direct labor, and 32% for manufacturing overhead. During 2021, the company paid 90% of the materials purchased, leaving P293,000 of unpaid invoices for materials at year end.The company commenced 2021 operations with materials inventory of P421,000. All materials were purchased FOB company’s plant. The company disbursed P2,101,500 for direct labor during 2021. As of December 31, 2021, the accrued liability for direct labor amounted to P144,000, which was twice as much as last year’s accrual. The inventory of finished goods on December 31, 2021, was 10% of the cost of the units finished during the year, and goods in process on that date were one-half the finished goods inventory. This year’s finished goods inventory was 150% of last year. There are no in process last year. The manufacturing overhead, except for…
W.W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for $400 each. Philllips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips accounting records provide the following information: Purchase of raw materials $320,000 Beginning materials inventory $46,800 Ending materials inventory $66,800 Direct Labor $200,000 Indirect labor $ 40,000 Rent, factory building $42,000 Depreciation, factory equipment $ 60,000 Utilities, factory $11,900 Salary, sales supervisor $90,000 Commissions, salesperson $180,000 General adminisration $300,000 Beginning work in process inventory $13,040 Ending work in process inventory $14,940 Beginning finished goods inventory $80,000 Ending finished goods inventory…
The following data summarizes in part the results of operations for 2021 of Place Company. Of the total cost of goods manufactured for 2021, 38% was for materials used, 30% for direct labor, and 32% for manufacturing overhead. During 2021, the company paid 90% of the materials purchased, leaving P293,000 of unpaid invoices for materials at year end.The company commenced 2021 operations with materials inventory of P421,000. All materials were purchased FOB company’s plant. The company disbursed P2,101,500 for direct labor during 2021. As of December 31, 2021, the accrued liability for direct labor amounted to P144,000, which was twice as much as last year’s accrual. The inventory of finished goods on December 31, 2021, was 10% of the cost of the units finished during the year, and goods in process on that date were one-half the finished goods inventory. This year’s finished goods inventory was 150% of last year. There are no in process last year. The manufacturing overhead, except for…