Boris' Car Loft, Inc., began operations on January 1. It manufactures 10,000 automobiles and sold 8,000. It incurred the following costs during the year: Factory worker wages Chief Financial Officer's salary $10,000 $300,000 Factory rent $60,000 Factory materials $40,000 Corporate headquarters' rent $200,000 Calculate the total product cost for the year ended December 31.
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- Larkspur Company reports the following costs and expenses in May. Factory utilities $16,000 Direct labor $72,080 Depreciation on factory equipment 13,120 Sales salaries 47,920 Depreciation on delivery trucks 4,240 Property taxes on factory building 2,600 Indirect factory labor 51,120 Repairs to office equipment 1,400 Indirect materials 83,840 Factory repairs 2,080 Direct materials used 143,680 Advertising 15,600 Factory manager’s salary 8,800 Office supplies used 2,710 From the information:Cornelius Company produces women’s clothing. During the year, the company incurred the following costs: Factory rent $ 380,000 Direct labor 300,000 Utilities—factory 38,000 Purchases of direct materials 555,000 Indirect materials 66,000 Indirect labor 60,000 Inventories for the year were as follows: January 1 December 31 Materials $ 25,000 $ 40,000 Work-in-Process 45,000 40,000 Finished Goods 135,000 75,000 Required: 1&2. Prepare a statement of cost of goods manufactured and calculate cost of goods sold.Green Company's costs for the month of August are as follows: Direct materials used $27,000 Direct labour $34,000 Sales salaries $14,000 Indirect labour $10,000 Indirect materials $15,000 General corporate administrative costs $12,000 Property taxes on manufacturing facility $2,000 Rent on factory $17.000 The beginning work-in-process inventory is $16,000 and the ending work-in-process inventory is $9,000. What is the cost of goods manufactured for the month? a. $112,000 b. $105,000 C. $132,000 d. $138,000
- Custom Engines Company has the following estimated costs for the upcoming year: Direct labor costs $62,800 Direct materials used $25,600 Salary of factory supervisor $37,800 Sales commissions $8300 Heating and lighting costs for factory $22,900 Depreciation on factory equipment $5500 Advertising expense $33,100 The company estimates that 2000 direct labor hours will be worked in the upcoming year, while 2800 machine hours will be used during the year. The predetermined manufacturing overhead rate per direct labor hour is closest toSchwiesow Corporation has provided the following information: Variable manufacturing overhead Fixed manufacturing overhead $5.10 $1.80 Direct materials Direct labor Sales commissions $1.00 Variable administrative expense $0.40 Fixed selling and administrative expense $ 5,500 If the selling price is $18.70 per unit, the contribution margin per unit sold is closest to: $4.30 $8.15 Cost per Unit Cost per Period $7.05 $ 3.50 $1.65 $ 11,000Arrow Manufacturing Co. expects to make 50,000 chairs during the year 1 accounting period. The company made 3,000 chairs in January. Materials and labor costs for January were $36,000 and $48,000, respectively. Arrow produced 4,000 chairs in February. Material and labor costs for February were $48,000 and $60,000, respectively. The company paid the $480,000 annual rental fee on its manufacturing facility on January 1, year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. RequiredAssuming that Arrow desires to sell its chairs for cost plus 40 percent of cost, what price should be charged for the chairs produced in January and February? (Round intermediate calculations and final answers to 2 decimal places.)
- Custom Creations Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include: Depreciation on sales office $ 9,800 Depreciation on factory equipment 16,700. Factory supervisor salary Sales commissions Lubricants used in factory equipment Insurance costs for factory Wages paid to maintenance workers Fabric used to upholster furniture Freight-in (on raw materials) Costs of delivery to customers Wages paid to assembly-line workers Lumber used to build product 50,200 23,400 3,800 21,400 115,600 10,900 3,200 9,200 A. $261,800. OB. $131,700. OC. $236,600. D. $325,100. 115,100 82,100 54,100 26,900 Utilities in factory Utilities in sales office Manufacturing overhead costs for Custom Creations Furniture Company totaledAt the beginning of the year, Learer Company’s manager estimated total direct labor cost assuming 30 persons working an average of 2,000 hours each at an average wage rate of $40 per hour. The manager also estimated the following manufacturing overhead costs for the year. Indirect labor $ 334,200 Factory supervision 143,000 Rent on factory building 155,000 Factory utilities 103,000 Factory insurance expired 83,000 Depreciation—Factory equipment 412,000 Repairs expense—Factory equipment 75,000 Factory supplies used 83,800 Miscellaneous production costs 51,000 Total estimated overhead costs $ 1,440,000 At year-end, records show the company incurred $1,592,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $619,000; Job 202, $578,000; Job 203, $313,000; Job 204, $731,000; and Job 205, $329,000. In addition, Job 206 is in process at the end of the year and…The Company manufactures furniture at its New York factory. Some of its costs from the past year include: Depreciation on sales office $ 9,700 Depreciation on factory equipment 16,600 Factory supervisor salary 50,200 Sales commissions 23,600 Lubricants used in factory equipment 3,000 Insurance costs for factory 21,400 Wages paid to maintenance workers 115,400 Fabric used to upholster furniture 10,800 Freight-in (on raw materials) 3,600 Costs of delivery to customers 9,000 Wages paid to assembly-line workers 115,600 Lumber used to build product 82,200 Utilities in factory 54,800 Utilities in sales office 26,100 Direct material costs for The Company totaled
- Hindenburger, Inc., began operations on January 1. It made 5,000 burgers and sold 4,000 of them. Hindenburger incurred the following costs Raw materials $1,000 Wages of production workers 7,000 Rent for corporate headquarters 5,000 Depreciation on manufacturing equipment 2,000 Commissions paid to sales people 4,000 Calculate the Total Product Cost for the year ended December 31.[The following information applies to the questions displayed below.]Information on Kwon Manufacturing’s activities for its first month of operations follows: Purchased $101,700 of raw materials on credit. Materials requisitions show the following materials used for the month. Job 201 $ 49,900 Job 202 25,300 Total direct materials 75,200 Indirect materials 10,320 Total materials used $ 85,520 Time tickets show the following labor used for the month. Job 201 $ 40,900 Job 202 14,300 Total direct labor 55,200 Indirect labor 25,900 Total labor used $ 81,100 Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost. Transferred Job 201 to Finished Goods Inventory. (1) Sold Job 201 for $168,860 on credit. (2) Record cost of goods sold for Job 201. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $ 33,700 Rent on factory building (payable)…Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat. 1. Plastic for casing-$20,000 2. Wages of assembly workers-$89,000 3. Property taxes on factory-$6,000 4. Office accounting salaries-$39,000 5. Drum stands-$35,000 6. Rent cost of office for accountants-$48,000 7. Office management salaries-$210,000 8. Annual fee for factory maintenance $16,000 9. Sales commissions-$21,000 10. Factory machinery depreciation, straight-line-$41,000 Costs Required: 1. Classify each cost and its amount as either product or period. The first cost is completed as an example. Costs 1. Plastic for casing 2. Wages of assembly workers 3. Property taxes on factory 4. Office accounting salaries 5. Drum stands 6. Rent cost of office for accountants 7. Office management salaries 8. Annual fee for factory maintenance 9 Sales commissions 10 Factory machinery depreciation, straight-line i $ Product 20,000 Period