Direct labor $ 90, 000 Advertising $ 40,000 Factory supervision $ 35,000 Salescommissions $ 15,000 Depreciation, office equipment $ 4,000 Indirect materials $ 5,000Depreciation, factory building $ 20,000 Administrative office salaries $ 1,000 Utilities,factory $ 2,500 Direct materials $ 105,000 Insurance, factory $ 6,000 Property taxes,factory $ 7,000 What are the total product costs A: 265,500 $270, 500 $274,500 $285, 500

Product costs is the total cost incurred in the manufacturing of the product during the period. It…

Answered: Direct labor $ 90,000 Advertising $…

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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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.
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
A-6
Journalize the following transactions: Materials used in production, $40,000 Paid plant supervisor’s salary, $6,000 Plant depreciation, $10,000 Production labor costs incurred, $80,000 MOH is allocated at the rate of 120% of direct labor costs Cost of goods manufactured, $200,000 Revenue on account, $450,000 Cost of goods sold, $300,000 Paid advertising costs, $90,000
At 50,000 units of production, the Grayson Company expects costs to be as follows: Direct materials $140,000 $100,000 $50,000 $40,000 Direct labour Depreciation of factory Depreciation of production equipment Production supervisor's salary Supplies Indirect labour Electricity Assume all cost items are either strictly fixed or strictly variable. The total cost of direct materials at 40,000 units of production would be: Select one: a. $116,000 b. $168,000 $ 24,000 $5,000 $ 30,000 $ 15,000 c. $112,000 d. $140,000

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