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EMIST TOOO OT VOITOL ASSIGNME 2-20 The following information was extracted from the accounting records of Roosevelt Manufacturing Company: rigie aed quong moot sen no subot Direct materials purchased Direct materials used 1. $124,000 2. $120,000 71100b Direct manufacturing labor costs Indirect manufacturing labor costs Sales salaries Other plant expenses Selling and administrative expenses Jubnoa, qu adm w Wada What was the cost of goods manufactured? 3. $154,000 4. $170,000 fixed costs, tot 80,000 76,000 10,000 12,000 14,000 10 000 22,000 bsxil 10 oldshev d 20,000 UGY ©2016 DeVry/Becker Educational Development Corp. All Rights Reserved. anisopenehagensmueno) of su307 Exercises shgi/gritega 91admoni tata Joel ton as alles laubiyibni to eingsphi en 010 auool 2-21 Computing and interpreting manufacturing unit costs. Minnesota Office Products produces three different paper products at its Vaasa lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated production line at the plant. It currently uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labor, and manufacturing overhead costs. Total manufacturing overhead costs of the plant in July 2020 are $150 million ($15 million of which are fixed). This total amount is allocated to each product line on the basis of the direct manufacturing labor costs of each line. Summary data (in millions) for July 2020 are as follows: not fista 03 memye A neitghoadua IsunnA nors 3

EMIST TOOO OT VOITOL ASSIGNME 2-20 The following information was extracted from the accounting records of Roosevelt Manufacturing Company: rigie aed quong moot sen no subot Direct materials purchased Direct materials used 1. $124,000 2. $120,000 71100b Direct manufacturing labor costs Indirect manufacturing labor costs Sales salaries Other plant expenses Selling and administrative expenses Jubnoa, qu adm w Wada What was the cost of goods manufactured? 3. $154,000 4. $170,000 fixed costs, tot 80,000 76,000 10,000 12,000 14,000 10 000 22,000 bsxil 10 oldshev d 20,000 UGY ©2016 DeVry/Becker Educational Development Corp. All Rights Reserved. anisopenehagensmueno) of su307 Exercises shgi/gritega 91admoni tata Joel ton as alles laubiyibni to eingsphi en 010 auool 2-21 Computing and interpreting manufacturing unit costs. Minnesota Office Products produces three different paper products at its Vaasa lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated production line at the plant. It currently uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labor, and manufacturing overhead costs. Total manufacturing overhead costs of the plant in July 2020 are $150 million ($15 million of which are fixed). This total amount is allocated to each product line on the basis of the direct manufacturing labor costs of each line. Summary data (in millions) for July 2020 are as follows: not fista 03 memye A neitghoadua IsunnA nors 3

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Problem 2-20
2-20 The following information was extracted from the accounting records of Roosevelt Manufacturing Company: we sleubivibni frigio aed quong auool Hos3 sainemos toubongomuanos tol aquong bonio dyd beless be Quool to dua Direct materials purchased Direct materials used Direct manufacturing labor costs Indirect manufacturing labor costs Sales salaries Other plant expenses 21208 fot Selling and administrative expenses dob admun art ni What was the cost of goods manufactured? 1. $124,000 to plant man 3. $154,000 2. $120,000 4. $170,000 ©2016 DeVry/Becker Educational Development Corp. All Rights Reserved. called Direct material costs Consor Direct manufacturing labor costs Manufacturing overhead costs Units produced loorias -OUROO bei 80,000 $16 $ 48 125 erit ne 76,000 to edmun muminim s 10,000 emuano of noizzez 112,000 805 ropa ylizzsi Exercises 2-21 Computing and interpreting manufacturing unit costs. Minnesota Office Products produces three different paper products at its Vaasa lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated production line at the plant. It currently uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labor, and manufacturing overhead costs. Total manufacturing overhead costs of the plant in July 2020 are $150 million ($15 million of which are fixed). This total amount is allocated to each product line on the basis of the direct manufacturing labor costs of each line. Summary data (in millions) for July 2020 are as follows: 101 tista zuao taxis to 2000 eniloasa M vobiseid epselim on ritiw allid virtinom timdue Deluxe Regular Supreme a $ 89's in its back $ 57 and top-mo$ 60 $26 $8 $78 ateoo to no izan13 AS-S $24 meteswbiM ls no augmso 140 noites ensinos bus (opol moiress consin 150 ASSIGNMENT 0q91 23 14,000 b 10 10100 22,000 baxil 10 oldehsVd 20,000 rubros quo ows aved lliw UGY nad malond un at merye A dua lounnA a sa anor 1. Compute the manufacturing cost per unit for each product produced in July 2020. 2. Suppose that, in August 2020, production was 150 million units of Supreme, 190 million units of Deluxe, and 220 million units of Regular. Why might the July 2020 information on manufacturing cost per unit be misleading when predicting total manufacturing costs in August 2020? nill) espnsrlo bloa ahire-t lo 2-22 Direct, indirect, fixed, and variable costs. Florida Growers Association produces both orange and grapefruit juice that it sells as wholesale products to various grocery suppliers. Each type of juice requires a three-step process. The first step is the preparation department, which cleans the fruit. The second step is the squeezing department, which combines some of the necessary sugars and added flavoring to create the juice. This step also includes quality control using both automated and manual processes. The final step is packaging, which is an entirely automated process. 1. Costs involved in the process are listed next. For each cost, indicate whether it is a direct variable, direct fixed, indirect variable, or indirect fixed cost with respect to the cost object "one gallon of grapefruit juice". Costs: Wages of the operator of the packaging machine Cost of the oranges and grapefruit 2 Cartons for the juice Cost of the cleansers used to clean the fruit in Wages of the fruit cleaners in the first step Wages of the machinist running the squeezing
Transcribed Image Text:2-20 The following information was extracted from the accounting records of Roosevelt Manufacturing Company: we sleubivibni frigio aed quong auool Hos3 sainemos toubongomuanos tol aquong bonio dyd beless be Quool to dua Direct materials purchased Direct materials used Direct manufacturing labor costs Indirect manufacturing labor costs Sales salaries Other plant expenses 21208 fot Selling and administrative expenses dob admun art ni What was the cost of goods manufactured? 1. $124,000 to plant man 3. $154,000 2. $120,000 4. $170,000 ©2016 DeVry/Becker Educational Development Corp. All Rights Reserved. called Direct material costs Consor Direct manufacturing labor costs Manufacturing overhead costs Units produced loorias -OUROO bei 80,000 $16 $ 48 125 erit ne 76,000 to edmun muminim s 10,000 emuano of noizzez 112,000 805 ropa ylizzsi Exercises 2-21 Computing and interpreting manufacturing unit costs. Minnesota Office Products produces three different paper products at its Vaasa lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated production line at the plant. It currently uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labor, and manufacturing overhead costs. Total manufacturing overhead costs of the plant in July 2020 are $150 million ($15 million of which are fixed). This total amount is allocated to each product line on the basis of the direct manufacturing labor costs of each line. Summary data (in millions) for July 2020 are as follows: 101 tista zuao taxis to 2000 eniloasa M vobiseid epselim on ritiw allid virtinom timdue Deluxe Regular Supreme a $ 89's in its back $ 57 and top-mo$ 60 $26 $8 $78 ateoo to no izan13 AS-S $24 meteswbiM ls no augmso 140 noites ensinos bus (opol moiress consin 150 ASSIGNMENT 0q91 23 14,000 b 10 10100 22,000 baxil 10 oldehsVd 20,000 rubros quo ows aved lliw UGY nad malond un at merye A dua lounnA a sa anor 1. Compute the manufacturing cost per unit for each product produced in July 2020. 2. Suppose that, in August 2020, production was 150 million units of Supreme, 190 million units of Deluxe, and 220 million units of Regular. Why might the July 2020 information on manufacturing cost per unit be misleading when predicting total manufacturing costs in August 2020? nill) espnsrlo bloa ahire-t lo 2-22 Direct, indirect, fixed, and variable costs. Florida Growers Association produces both orange and grapefruit juice that it sells as wholesale products to various grocery suppliers. Each type of juice requires a three-step process. The first step is the preparation department, which cleans the fruit. The second step is the squeezing department, which combines some of the necessary sugars and added flavoring to create the juice. This step also includes quality control using both automated and manual processes. The final step is packaging, which is an entirely automated process. 1. Costs involved in the process are listed next. For each cost, indicate whether it is a direct variable, direct fixed, indirect variable, or indirect fixed cost with respect to the cost object "one gallon of grapefruit juice". Costs: Wages of the operator of the packaging machine Cost of the oranges and grapefruit 2 Cartons for the juice Cost of the cleansers used to clean the fruit in Wages of the fruit cleaners in the first step Wages of the machinist running the squeezing
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Step 1 Introduction

The product costs are the costs that are directly or indirectly related to the production process. The production costs include direct materials, direct labor and overhead costs.

The selling and administrative expenses are not included in the product cost. 

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