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.
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.
Premium, Inc. produced 1,000 units of the company's product in 2024. The standard quantity of direct materials was three yards of cloth per unit at a standard cost of $1.00 per yard. The accounting records showed that 2.400 yards of cloth were used and the company paid $1.05 per yard. Standard time was two direct labor hours per unit at a standard rate of $13.00 per direct labor hour. Employees worked 1,600 hours and were paid $12.50 per hour. - X Read the requirements. Requirement 1. What are the benefits of setting cost standards? Standard costing helps managers do the following: Direct materials cost variance Direct labor cost variance Requirements 1. What are the benefits of setting cost standards? 2. Calculate the direct materials cost variance and the direct materials efficiency variance as well as the direct labor cost and efficiency variances Direct materials efficiency variance Direct labor efficiency variance Requirement 2. Calculate the direct materials cost variance and the…
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)
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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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…
During May, Camino Corporation purchased direct materials for 4,300 units at a total cost of $55,900. Camino's standard direct materials cost is $12.00 per unit. Required: Prepare the journal entry to record this transaction. ( Record the purchase of materials)
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Bargain, Inc. produced 1.000 units of the company's product in 2024. The standard quandity of direct materials was three yards of cloth per unit at a standard cost of $1.10 per yard. The accounting records showed that 2,800 yards of cioth were used and the company paid $1.15 per yard. Standard time was two direct labor hours per unit at a standard rate of $14.00 per direct labor hour. Employees worked 1,800 hours and were paid $13.50 per hour. Read the seauiements Requirement 1. What are the benefits of setting cost standards? Standard costing helps managers do the following Prepare the master budget Set target levels of perfomance for fleibie budgets dentity performance standards Set sales prices of products and services Decrease accounting costs Requirement 2. Calculate the direct materials cost variance and the direct materials efficiency variance as well as the direct labor cost and efficiency variances Begin with the cost variances. Select the required formulas, compute the cost…
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