Exercise 11-2A (Algo) Materials and compensation costs in manufacturing versus service companies LO11-1Vernon Company started year 1 with $315,000 in its cash and common stock accounts. During year 1, Vernon paid $236,250 cash foremployee compensation and $72,450 cash for materials.Requireda. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Vernon usedthe labor and materials to make 1,500 chairs. Further, assume that Vernon sold 1,200 of the chairs It made. State the name of theexpense account(s) shown on the income statement.b. Determine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Vernon usedthe labor and materials to provide dental cleaning services to 500 patients. State the name of the expense account(s) shown on theincome statement.Complete this question by entering your answers in the tabs below.Required A Required BDetermine the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Vernonused the labor and materials to make 1,500 chairs. Further, assume that Vernon sold 1,200 of the chairs it made. State thename(s) of the expense account shown on the income statement.

The expenses incurred by an employer to provide benefits to an employee when the employee is unable…

Answered: Exercise 11-2A (Algo) Materials and…

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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Exercise 14-07 National Express reports the following costs and expenses in June 2020 for its delivery service. Indirect materials Depreciation on delivery equipment Dispatcher's salary $7,100 Drivers' salaries 12,300 5,260 910 13,000 2,600 Period costs Advertising Delivery equipment repairs Office supplies Office utilities Repairs on office equipment $16,200 5,400 390 720 1,060 220 Property taxes on office building CEO's salary Gas and oil for delivery trucks Determine the total amount of (a) delivery service (product) costs and (b) period costs. Delivery service (product) costs
Exercise 10-6A (Algo) Identifying product versus SG&A costs LO 10-2, 10-3 A review of the accounting records of Zachary Manufacturing indicated that the company incurred the following payroll costs during the month of March. Assume the company's financial statements are prepared in accordance with GAAP. 1. Salary of the company president-$32,800. 2. Salary of the vice president of manufacturing-$15,100. 3. Salary of the chief financial officer-$17,900. 4. Salary of the vice president of marketing-$15,000. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$189,000. 6. Wages of production workers-$945,000. 7. Salaries of administrative personnel-$111,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$169,000. 9. Commissions paid to sales staff-$245,000. Required a. What amount of payroll cost would be classified as SG&A (selling, general, and administrative) expense? b. Assuming that Zachary…
COST OF GOODS MANUFACTURED AND SOLD STATEMENTS AND NET INCOME OR LOSS PROBLEM 2-5 The Stiff Shirt Company has just completed its third year of operation. Sales for the year were $1,300,000, and inventories were as follows: DECEMBER 31 JANUARY 1 Raw materials inventory Work-in-process inventory Finished goods Inventory -0- $100,000 64,000 -0- $95,000 76,000 Costs for the period were as follows: Direct materials... $365,000 Direct labor Factory overhead 405,000 445,500 ..... Selling expenses were $26,000. General and administrative expenses were $82,000. Required: a Prepare the following statements: 1 Cost of goods manufactured 2 Cost of goods sold b Compute the net income or loss.
Exercise 3-3 (Algo) Schedules of Cost of Goods Manufactured and Cost of Goods Sold [LO3-3] Primare Corporation has provided the following data concerning last month's manufacturing operations. Purchases of raw materials Indirect materials used in production Direct labor Manufacturing overhead applied to work in process Underapplied overhead Inventories Raw materials Work in process Finished goods Beginning Ending $ 11,600 $ 18,600 $ 54,600 $ 66,700 $ 33,300 $ 42,600 $ 30,000 $ 4,530 Required: 1. Prepare a schedule of cost of goods manufactured for the month. 2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold. Required 1 Required 2 $ 59,100 $ 88,500 $ 4,080 Complete this question by entering your answers in the tabs below. Prepare a schedule of cost of goods manufactured for the month.
Exercise 11-4A (Algo) Calculating applied overhead LO 11-2 Stuart, Inc. estimates manufacturing overhead costs for the Year 3 accounting period as follows. Equipment depreciation $ 191,000 Supplies 20,000 Materials handling 33,400 Property taxes 14,800 Production setup 19,800 Rent 45,000 Maintenance 39,300 Supervisory salaries 315,100 The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in Year 3 were 215,000 and for machines were 128,000.Required Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) Determine the amount of manufacturing overhead applied to Work in Process Inventory during the Year 3 period if actual machine hours were 143,000. (Do not round intermediate calculations.)
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Exercise 3-3 (Algo) Schedules of Cost of Goods Manufactured and Cost of Goods Sold [LO3-3] Primare Corporation has provided the following data concerning last month's manufacturing operations. Purchases of raw materials $ 32,000 Indirect materials used in production $ 4,870 Direct labor Manufacturing overhead applied to work in process Underapplied overhead Inventories Raw materials Work in process Finished goods Beginning Ending $ 10,600 $ 18,000 $ 55,100 $ 68,200 $ 34,900 $ 43,500 Required: 1. Prepare a schedule of cost of goods manufactured for the month. 2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule of cost of goods manufactured for the month. Primare Corporation Schedule of Cost of Goods Manufactured $ 59,100 $ 87,200 $ 4,010 Beginning work in process inventory Direct materials:…
answer 1,2,3 in detail
Required Information Exercise 3-31 Manufacturing Cost Flows (LO 3-2, 3-5, 3-6) [The following information applies to the questions displayed below.] Reimel Furniture Company, Inc., incurred the following costs during 20x2. Raw material used Direct labor During 20x2, manufacturing overhead of $180,000 was applied to production. Products costing $122,000 were finished, and products costing $132,000 were sold on account for $193,000. There were no purchases of raw material during the year. The beginning balances in the firm's inventory accounts are as follows: Exercise 3-31 Part 1 Raw material Work in process Finished goods Beg. Bal. Required: 1. Prepare T-accounts to show the flow of costs through the company's manufacturing accounts during 20x2. End. Bal. Beg. Bal. Beg. Bal End. Bal. Beg. Bal End. Ball $ 173,000 321,000 End. Bal. $ 225,000 18,000 32,000 Raw-Material Inventory Wages Payable Finished-Goode Inventory Accounts Receivable Beg. Bal. Direct material Direct labor Manufacturing…
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PROBLEM 4 Marquess Corporation has provided the following partial listing of costs incurred during May: Marketing salaries. $39,000 $8,000 Property taxes, factory Administrative travel. $102,000 $73,000 $31,000 $197,000 $145,000 $39,000 $78,000 Sales commissions Indirect labor. Direct materials. Advertising. Depreciation of production equipment....... Direct labor.... Required: a. What is the total amount of product cost listed above? Show your work. b. What is the total amount of period cost listed above? Show your work.

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