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 50,200 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 Utilities in factory Utilities in sales office Manufacturing overhead costs for Custom Creations Furniture Company totaled OA $261,800. OB. $131,700. C. $236,600. OD. $325,100. 23,400 3,800 21,400 115,600 10,900 3,200 9,200 115,100 82,100 54,100 26,900

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 50,200 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 Utilities in factory Utilities in sales office Manufacturing overhead costs for Custom Creations Furniture Company totaled OA $261,800. OB. $131,700. C. $236,600. OD. $325,100. 23,400 3,800 21,400 115,600 10,900 3,200 9,200 115,100 82,100 54,100 26,900

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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Aggregator Industries does cement pouring jobs for homes and businesses. Below is information related to its Overhead application: Estimated Overhead Cost $ 240,000 Estimated Direct Labor Hours 29,000 Actual Direct Labor Hours 31,587 Estimated Machine Hours 74,000 Actual Machine Hours 68,541 Depreciation of Mixing Equipment $ 48,000 Depreciation of Pouring Equipment $ 52,000 Fuel for Cement Truck $ 3,900 Factory Supervisor Salaries $ 104,000 Advertising Expense $ 2,850 Rent Expense for Cement Yard $ 23,000 Required: Determine the Predetermined Overhead Rate if the Cost Driver is Direct Labor Hours. Calculate the Over/Underapplied Overhead. Create a journal entry to dispose of the Over/Underapplied Overhead. Repeat steps 1-3, but with Machine Hours as the Cost Driver. Navigation: Use the Open Excel in New Tab button to launch this question. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect
Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for April: Cutting Assembly Finishing direct materials $7,000 $10,000 $3,000 direct labor 3,000 14,000 2,000 applied overhead 4,000 5,000 6,000 There were no work in process inventories and 1,000 podiums were produced.Record the journal entries to record the transfer of goods from process to process. a. Work in Process - Assembly 29,000 Work in Process - Cutting 29,000 Work in Process - Finishing 11,000 Work in Process - Assembly 11,000 Finished Goods 54,000 Work in Process - Finishing 54,000 b. Work in Process - Assembly 14,000 Work in Process - Cutting 14,000 Work in Process - Finishing 43,000 Work in Process - Assembly 43,000 Finished Goods 54,000 Work in Process - Finishing 54,000 c. Work in Process - Cutting 14,000 Raw Materials 14,000 Work in Process - Assembly 29,000 Raw Materials 29,000 Work in Process -…
Melville Manufacturing produces metal components for automotive suppliers. Financial records for September show the following: Administrative salaries Depreciation on the administrative building Depreciation on the manufacturing plant Direct labor Direct materials inventory, September 1 Direct materials inventory, September 30 Direct materials purchased during the month Distribution costs Finished goods inventory, September 1 Finished goods inventory, September 30 Indirect manufacturing labor Insurance (on manufacturing plant) Legal fees Maintenance (on the manufacturing plant) Manufacturing plant utiities Marketing costs Other manufacturing plant costs Sales revenue Taxes (on manufacturing plant and property) Work-in-process inventory, September 1 Work-in-process inventory, September 30 Manufacturing costs: Direct materials: 30 Required: a. Prepare a cost of goods manufactured and sold statement. b. Prepare an income statement. 2,643,000 1,160,000 1,768,000 4,710,500 1,087,200…
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Listed here are product costs for production of soccer balls. Classify each cost as either direct or indirect. Product Cost 1. Coolants for machinery 2. Wages of product assembly workers 3. Annual flat fee paid for factory security 4. Taxes on factory 5. Machinery depreciation (straight-line) 6. Rubber bladder interior for balls 7. Factory building rent 8. Wages of factory machine operators 9. Wages of factory maintenance workers 10. Factory supervisor salary Direct or Indirect
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Use the table below and record the amount in the appropriate column category. Cost Item Cost Prime cost Conversion Cost Factory Overhead Period Costs Rent on Factory equipment 11,000 Insurance on factory building 1,500 Raw materials 75,000 Sales Commissions 10,000 Utility costs for factory 900 Supplies for general office 300 Wages for assembly line workers 58,000 Depreciation on office equipment 800 Miscellaneous materials (Glue etc.) 1,100 Factory manager’s salary 5,700 Property taxes on factory building 400 Advertising for the laptops 14,000 Office Supervisor Salary 16,000 Depreciation of factory building 1,500
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