Classifying Costs The following is a manufacturing cost report of Marching Ants Inc. Evaluate and correct this report. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Materials used in production (including $56,200 of indirect materials) $607,500 Direct labor (including $84,400 maintenance salaries) 562,500 Factory overhead: Supervisor salaries—plant 517,500 Heat, light, and power—plant 140,650 Sales salaries 348,750 Promotional expenses 315,000 Insurance and property taxes—plant 151,900 Insurance and property taxes—corporate offices 219,400 Depreciation—plant and equipment 123,750 Depreciation—corporate offices 90,000 Total $3,076,950 Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30
Classifying Costs The following is a manufacturing cost report of Marching Ants Inc. Evaluate and correct this report. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Materials used in production (including $56,200 of indirect materials) $607,500 Direct labor (including $84,400 maintenance salaries) 562,500 Factory overhead: Supervisor salaries—plant 517,500 Heat, light, and power—plant 140,650 Sales salaries 348,750 Promotional expenses 315,000 Insurance and property taxes—plant 151,900 Insurance and property taxes—corporate offices 219,400 Depreciation—plant and equipment 123,750 Depreciation—corporate offices 90,000 Total $3,076,950 Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Classifying Costs
The following is a manufacturing cost report of Marching Ants Inc. Evaluate and correct this report.
| Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 |
||
| Materials used in production (including | ||
| $56,200 of indirect materials) | $607,500 | |
| Direct labor (including $84,400 maintenance salaries) | 562,500 | |
| Factory |
||
| Supervisor salaries—plant | 517,500 | |
| Heat, light, and power—plant | 140,650 | |
| Sales salaries | 348,750 | |
| Promotional expenses | 315,000 | |
| Insurance and property taxes—plant | 151,900 | |
| Insurance and property taxes—corporate offices | 219,400 | |
| 123,750 | ||
| Depreciation—corporate offices | 90,000 | |
| Total | $3,076,950 |
| Marching Ants Inc. |
| Manufacturing Costs |
| For the Quarter Ended June 30 |
Transcribed Image Text:Cost of direct materials used in production v
Direct labor v
Factory overhead:
Maintenance salaries v
Indirect materials v
Supervisor salaries-plant v
517,500
Heat, light, and power-plant v
140,650
Insurance and property taxes-plant
151,900
Depreciation-plant and equipment v
123,750 v
Total factory overhead
Total manufacturing costs
00
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