(a) Under the absorption costing method, what is the average unit product cost? Using this method, how much product cost would berecorded on the income statement if 19,500 units were sold? (Round per unit to 3 decimal places, eg. 15.256 and product cost to O decimalplaces, eg. 5,275.)Average unit product costProduct cost(b) Under the variable costing method, what is the average unit product cost? Using this method, how much product cost would berecorded on the income statement if 19,500 units were sold? (Round per unit to 3 decimal places, eg. 15.256 and product cost to O decimalplaces, eg. 5,275.)Average unit product costProduct cost$%24%24%24%24 Cullumber makes Halloween costumes. The company incurred the following total costs to produce 28,000 costumes.Direct materials$212,000Direct labor116,000Variable overhead27,600Fixed overhead81,200

Absorption costing is a mechanism for aggregating and allocating expenses associated with a…

Answered: Cullumber makes Halloween costumes. The…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Mason Company provided the following data for this year: Sales $ 659,000 Direct labor cost $ 82,000 Raw material purchases $ 131,000 Selling expenses $ 101, 000 Administrative expenses $ 48,000 Manufacturing overhead applied to work in process $ 226,000 Actual manufacturing overhead costs $ 202, 000 Inventories Beginning Ending Raw materials $ 8,800 $ 10, 500 Work in process $ 5,100 $ 21,000 Finished goods $ 77,000 $25, 600 Required: Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. Prepare a schedule of cost of goods sold. Assume the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare an income statement.
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.
a. Direct Materials Price Variance Wrong Direct Materials Quantity Variance Wrong Total Direct Materials Cost Variance Wrong b. Direct Labor Rate Variance Wrong Direct Labor (Time) Efficiency Variance Wrong Total Direct Labor Cost Variance Wrong C. Fixed Factory Overhead Volume Variance Standard for amount produced Normal Capacity at 100% Capacity not used Standard Fixed FOH cost rate Factory Overhead Volume Variance Wrong Variable Factory Overhead Controllable Variance Standard Variable FOH Cost for 3,000 hours Actual Variable FOH Cost Factory Overhead Controllable Variance Wrong Total Factory Overhead Cost Variance Wrong
Direct materials $ 41,000 Direct labor-hours 680 labor-hours Direct labor wage rate $ 13 per labor-hour Machine-hours 370 machine-hours Number of units completed 3,500 units The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $12 per machine-hour. Compute the unit product cost that would appear on the job cost sheet for this job.
The following cost relate to COBEED for the year: Distribution Cost 123,000Direct Materials 234,000Conversion cost 456,000Factory overhead 111,000Compute for total prime cost:
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 6,000 units of product were as follows: Standard Costs Actual Costs Direct materials 7,800 lb. at $5.90 7,700 lb. at $5.80 Direct labor 1,500 hrs. at $16.10 1,530 hrs. at $16.40 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 1,560 direct labor hrs.: Variable cost, $3.00 $4,460 variable cost Fixed cost, $4.70 $7,332 fixed cost Each unit requires 0.25 hour of direct labor.
Vaughn Company manufactures two products, Mini A and Maxi B. Vaughn's overhead costs consist of setting up machines- $890,000; machining- $2,030,000; and inspecting- $640,000. Information on the two products is: Mini A Мaxi В Direct labour hours 14,000 26,000 Machine setups 700 500 Machine hours 21,000 23,000 Inspections 700 600 Overhead applied to Maxi B using traditional costing and direct labour hours is
Fen Furnishings produces brass handles for the furniture industry in a four-stage process –Mixing, Moulding, Polishing and Packaging. Costs incurred in the Polishing Department during January are summarized as follows: WIP - Polishing Process A/CJanuary 1 Bal. $Transfer from Moulding 1,310,000Direct Materials Added 391,600Direct Labour 638,000Manufacturing Overhead 307,400Normal losses are estimated to be 2½% of input during the period. Inspection takes place during the processing operation, at which point damaged handles are separated from good handles and sold as scrap to local furniture manufacturers at $85 each. At inspection, 2,000 handles were rejected as scrap. These units had reached the following degree of completion: Transfer from Moulding 100%Direct material added 40%Conversion costs 20% Work-in-progress at the end of January was 4,000 handles and had reached the following degree of…
Factory maintenance costs $90,000 Direct labor, wages 352,000 Direct labor, health insurance 32,000 Indirect labor, health insurance 15,000 Health insurance for production supervisor 6,500 Administrative costs 55,000 Rental of office space for administrative staff 17,500 Sales commissions 52,500 Direct material 1,230,000 Indirect materials 632,000 Advertising expense 39,000 Depreciation on factory building 62,000 Indirect labor, wages 70,000 Production supervisor's salary 32,000 Use the data to determine the total product cost.
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The following is the data for Lauren Enterprises: Selling and administrative expenses $75,000 Direct materials used 265,000 Direct labor (25,000 hours) 300,000 Factory overhead application rate $16 per DLH Inventories Beginning Ending Direct materials $50,000 $45,000 Work in process 75,000 90,000 Finished goods 40,000 25,000 Refer to Figure 2-14. What is the cost of goods manufactured? Inventories Beginning Ending Direct materials $50,000 $45,000 Work in process 90,000 75,000 40,000 25,000 Finished goods Refer to Figure 2-14. What is the cost of goods manufactured? $1,115,000 $965,000 $955,000 $950,000
Test and Pack Department 120,000 Total $306,000 The direct labor information for the production of 7,500 units of each product is as follows: Assembly Department Test and Pack Department Blender 750 dlh 2,250 dlh Toaster oven 2,250 750 Total 3,000 dlh 3,000 dlh Four Finger Appliance used direct labor hours to allocate production department factory overhead to products. If required, round all per unit answers to the nearest cent. a. Determine the two production department factory overhead rates. Assembly Department per direct labor hour Test and Pack Department per direct labor hour b. Determine the total factory overhead and the factory overhead per unit allocated to each product. Product Total Factory Overhead Factory Overhead Per Unit Blender Toaster oven

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Cullumber makes Halloween costumes. The company incurred the following total costs to produce 28,000 costumes. Direct materials $212,000 Direct labor 116,000