Provide what is required of the problem correctly. Christian Company provided the following data for 41current year:8,000,000520,000120,000600,000160,00080,00050,000130,000·1,600,0001,480,000.120,00030,000800,000480,000100,000150,000220,000170,000SalesSales salariesAdvertisingIndirect laborDelivery expenseFreight inDepreciation - machineryFactory taxesPurchasesDirect laborFactory supplies expenseOffice supplies expenseOffice salariesFactory superintendenceDoubtful accountsFactory maintenanceFactory heat, light and powerIncome tax expenseInventory balances at the end of the fiscal period as comparedwith balances at the beginning of the fiscal period were asfollows:Finished goodsGoods in processRaw materials200,000 decrease90,000 decrease100,000 increaseRequired:Prepare an income statement for the current year supportedby a schedule of cost goods manufactured.

The gross profit is calculated as difference between sales and cost of goods sold. The net profit…

Answered: Christian Company provided the current…

Business

Accounting

Christian Company provided the current year: Sales Sales salaries Advertising

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

See similar textbooks

Similar questions

On January 1 2020, South by Southwest Company used least squares regression analysis to estimate the total monthly payroll department cost of the company in 2020. The followings are the output from the regression analysis based on the observation of the payroll department cost( dependent variable) and the labor hours worked ( independent variable) for the last 20 months: Constant $18,000 r2 0.8924 X coefficient(s) $ 2.55 Required: BASED ON THE OUTPUT FROM THE REGRESSION ANALYSIS a. What is the total estimated fixed payroll department cost? b. What is the variable payroll department cost per labor hour? c. What is the estimate cost function of the payroll department cost? d. What is the coefficient of determination? Comment on the goodness of fit of the cost function? Plzz give all the ans
Spades Company provided the following information for the year ended December 31, 2022: Sales 8,000,000Sales salaries 520,000Advertising 120,000Indirect labor 600,000Delivery expense 160,000Freight in 80,000Depreciation – machinery 50,000Factory taxes 130,000Purchases 1,600,000Direct labor 1,480,000Factory supplies expense 120,000Office supplies expense 30,000Office salaries 800,000Factory superintendence 480,000Doubtful accounts 100,000Factory maintenance 150,000Factory heat, light and power 220,000Income tax expense 170,000 Doubtful accounts are common costs allocated to administrative expenses and selling expense equally. Inventory balancesat the end of the fiscal period as compared with balances at the beginning of the fiscal period were as follows: Finished goods 200,000 IncreaseGoods in process 90,000 IncreaseRaw materials 100,000 Decrease Tax rate is 30%. 1. What is the amount of cost of goods sold for the current period?2. What is the amount of general and administrative…
Spades Company provided the following information for the year ended December 31, 2022: Sales 8,000,000Sales salaries 520,000Advertising 120,000Indirect labor 600,000Delivery expense 160,000Freight in 80,000Depreciation – machinery 50,000Factory taxes 130,000Purchases 1,600,000Direct labor 1,480,000Factory supplies expense 120,000Office supplies expense 30,000Office salaries 800,000Factory superintendence 480,000Doubtful accounts 100,000Factory maintenance 150,000Factory heat, light and power 220,000Income tax expense 170,000 Doubtful accounts are common costs allocated to administrative expenses and selling expense equally. Inventory balancesat the end of the fiscal period as compared with balances at the beginning of the fiscal period were as follows: Finished goods 200,000 IncreaseGoods in process 90,000 IncreaseRaw materials 100,000 Decrease Tax rate is 30%. Questions 3. What is the amount of selling and distribution expense for the current period?4. How much is the net income for…
Spades Company provided the following information for the year ended December 31, 2022: Sales 8,000,000Sales salaries 520,000Advertising 120,000Indirect labor 600,000Delivery expense 160,000Freight in 80,000Depreciation – machinery 50,000Factory taxes 130,000Purchases 1,600,000Direct labor 1,480,000Factory supplies expense 120,000Office supplies expense 30,000Office salaries 800,000Factory superintendence 480,000Doubtful accounts 100,000Factory maintenance 150,000Factory heat, light and power 220,000Income tax expense 170,000 Doubtful accounts are common costs allocated to administrative expenses and selling expense equally. Inventory balancesat the end of the fiscal period as compared with balances at the beginning of the fiscal period were as follows: Finished goods 200,000 IncreaseGoods in process 90,000 IncreaseRaw materials 100,000 Decrease Tax rate is 30%. 1. What is the amount of cost of goods sold for the current period?2. What is the amount of general and administrative…
Calculate Swifty's gross profit percentage and percentage markup on cost for each fiscal year. (Round answers to 2 decimal places, eg. 52.75.) Percentage gross profit Percentage markup on cost Fiscal 2023 35.74 % 3.43 % Fiscal 2022 36.13 % 5.67 %
Assume the following data for Eim Alex Company for the years 2019, 2020, and 2021. Year Lifting.(Production) Costs (excluding DD&A) DD&A Production bbl 2019 750,000 855,000 325,000 2020 685,000 787,000 297,000 2021 578,000 729,000 362,000 Compute the DD&A per BOE for 2019. O 2.6308 2.6380 2.3680
EB9. 2.3 The cost data for BC Billing Solutions for the year 2020 is as follows: Month Invoices Processed Overtime Wages January 12000 $7,760 February 8000 $6,800 March 1000 $6,000 April 7000 $6,100 May 5000 $6,200 June 10000 $7,300 July 11000 $7,400 August 9000 $6,900 September 5000 $6,500 October 9000 $6,600 November 8000 $6,800 December 11000 $7,450 A. Using the high-low method, express the company’s overtime wages as an equation where x represents number of invoices processed. Assume BC has monthly fixed costs of $3,800. B. Predict the overtime wages if 9,000 invoices are processed. C. Predict the overtime wages if 6,500 invoices are processed. D. Using Excel, create a scatter graph of the cost data and explain the relationship between the number of invoices processed and…
The following information relates to Wal-Mart Corporation for the past accounting period: Cost Direct Center Cost Proportion of Services used by: S1 S2 S3 P1 P2 P3 S1 P120,000 .10 .30 .25 .20 .15 S2 80,000 .20 .40 .20 .20 S3 45,000 .60 .35 .05 P1 78,000 P2 99,000 P3 45,000 __________1. What amount will be allocated by S1 to S2 under direct method? __________2. What amount will be allocated by S2 to P2 under direct method? __________3. How much is the total overhead costs in P3 after the allocation under direct method? __________4. Under the step method which department will allocate its direct cost first? __________5. Under the step method which department will allocate its direct cost last? __________6. Using the algebraic method, how much is the total costs to be allocated by S1 to all departments? __________7. Using algebraic method, how much is the cost to be allocated by S3 to S2? __________8. What is the total cost to be allocated by the…
The following information is given to you from which you are required to prepare a Statement of Cost and Sales for the period ended on 30th June 2023:Consumable material: KOpening stock 20,000Purchases 122,000Closing stock 10,000Direct wages 36,000Direct Expenses 24,000Factory overheads 50 % of direct wagesOffice and administration overheads 20% of works costSelling and distribution expenses K3 per unit soldUnits of finished goods:In hand at the beginning of the period (Value K12,500) 500Units produced during the period 12,000In hand at the end of the period 1,500Profit on selling price 20% There is no work-in-progress either at the beginning or at the end of the period.
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
How do you Calculate the cost of labor-to-sales ratio from the numbers below Profit & loss account 2019Sales $ 618,603,629 Purchasing costs $ 397,925,058 Material costs $ 217,667,630 Services $ 167,622,858 Use of assets owned by other $ 12,634,569 Costs of employees $ 96,805,799 Depreciation & Amortization $ 27,586,951 Other operating items $ 67,196,537 Variation of Raw Material $ (1,543,807)Operating P/L [=EBIT] $ 29,089,285 P/L for period [=Net income] $ 19,331,064 Calculate the purchase-to-sales ratioCalculate the cost of labor-to-sales ratioJustify your calculationsComment about the value obtained: is in line with what you were expecting, considering the benchmark seen in class?