Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: Sales (13,500 units) $1,620,000 Production costs (17,000 units): Direct materials $754,800 Direct labor 362,100 Variable factory overhead 181,900 Fixed factory overhead 120,700 1,419,500 Selling and administrative expenses: Variable selling and administrative expenses $220,000 Fixed selling and administrative expenses 85,200 305,200 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31

Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: Sales (13,500 units) $1,620,000 Production costs (17,000 units): Direct materials $754,800 Direct labor 362,100 Variable factory overhead 181,900 Fixed factory overhead 120,700 1,419,500 Selling and administrative expenses: Variable selling and administrative expenses $220,000 Fixed selling and administrative expenses 85,200 305,200 If required, round interim per-unit calculations to the nearest cent. a. Prepare an income statement according to the absorption costing concept. Gallatin County Motors Inc. Absorption Costing Income Statement For the Month Ended July 31

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Description: Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month.The following data summarize the results for July:Sales (13,500 units)$1,620,000Produc

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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11. Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first month. The following data summarize the results for July: 1 Sales (33,000 units) $8,250,000.00 2 Production costs (40,500 units): 3 Direct materials $3,240,000.00 4 Direct labor 1,822,500.00 5 Variable factory overhead 1,012,500.00 6 Fixed factory overhead 607,500.00 6,682,500.00 7 Selling and administrative expenses: 8 Variable selling and administrative expenses $1,160,000.00 9 Fixed selling and administrative expenses 230,000.00 1,390,000.00 Required: a. Prepare an income statement according to the absorption costing concept.* b. Prepare an income statement according to the variable costing concept.* c. What is the reason for the difference in the amount of Operating income reported…
Sheffield Company reports the following costs and expenses in May. Factory utilities $16,300 Direct labor $73,300 Depreciation on factory equipment 13,350 Sales salaries 46,700 Depreciation on delivery trucks 4,600 Property taxes on factory building 3,300 Indirect factory labor 53,400 Repairs to office equipment 2,000 Indirect materials 83,100 Factory repairs 2,590 Direct materials used 142,700 Advertising 16,900 Factory manager’s salary 8,300 Office supplies used 3,150 From the information: (a) Determine the total amount of manufacturing overhead. Manufacturing overhead $
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Flounder Company reports the following costs and expenses in May. Factory utilities $16,000 Direct labor $72,700 Depreciation on factory equipment 14,250 Sales salaries 50,000 Depreciation on delivery trucks 4,900 Property taxes on factory building 2,600 Indirect factory labor 53,500 Repairs to office equipment 1,800 Indirect materials 85,000 Factory repairs 2,970 Direct materials used 141,700 Advertising 15,600 Factory manager's salary 8,100 Office supplies used 3,420 From the information: (a) Determine the total amount of manufacturing overhead. Manufacturing overhead $
At the beginning of the year, Learer Company’s manager estimated total direct labor cost assuming 30 persons working an average of 2,000 hours each at an average wage rate of $40 per hour. The manager also estimated the following manufacturing overhead costs for the year. Indirect labor $ 334,200 Factory supervision 143,000 Rent on factory building 155,000 Factory utilities 103,000 Factory insurance expired 83,000 Depreciation—Factory equipment 412,000 Repairs expense—Factory equipment 75,000 Factory supplies used 83,800 Miscellaneous production costs 51,000 Total estimated overhead costs $ 1,440,000 At year-end, records show the company incurred $1,592,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $619,000; Job 202, $578,000; Job 203, $313,000; Job 204, $731,000; and Job 205, $329,000. In addition, Job 206 is in process at the end of the year and…
The following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 1 Materials used in production (including $52,800 of indirect materials) $616,000.00 2 Direct labor (including $83,800 maintenance salaries) 565,500.00 3 Factory overhead: 4 Supervisor salaries 521,000.00 5 Heat, light, and power 140,800.00 6 Sales salaries 347,800.00 7 Promotional expenses 320,000.00 8 Insurance and property taxes—plant 151,500.00 9 Insurance and property taxes—corporate offices 218,600.00 10 Depreciation—plant and equipment 124,750.00 11 Depreciation—corporate offices 85,000.00 12 Total $3,090,950.00 Evaluate and correct this report. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure…
Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $150 per unit. Manufacturing costs Direct materials per unit $ 66 Direct labor per unit $ 25 Variable overhead per unit $ 9 Fixed overhead for the year $ 572,000 Selling and administrative costs Variable selling and administrative cost per unit $ 12 Fixed selling and administrative cost per year $ 110,000 2a. Assume the company uses variable costing. Determine its product cost per unit.
During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 48,000 mini refrigerators, of which 44,000 were sold. Operating data for the month are summarized as follows: 1 Sales $8,800,000.00 2 Manufacturing costs: 3 Direct materials $3,360,000.00 4 Direct labor 1,344,000.00 5 Variable manufacturing cost 816,000.00 6 Fixed manufacturing cost 528,000.00 6,048,000.00 7 Selling and administrative expenses: 8 Variable $528,000.00 9 Fixed 352,000.00 880,000.00 Required: 1. Prepare an income statement based on the absorption costing concept.* 2. Prepare an income statement based on the variable costing concept.*
he following events took place for Migliozzi Inc. during July, the first month of operations as a producer of road bikes: Purchased $416,000 of materials Used $358,000 of direct materials in production Incurred $308,000 of direct labor wages Applied factory overhead at a rate of 75% of direct labor cost Transferred $851,000 of work in process to finished goods Sold goods with a cost of $806,000 Sold goods for $1,460,000 Incurred $328,000 of selling expenses Incurred $131,000 of administrative expenses Question Content Area a. Prepare the July income statement for Migliozzi. Assume that Migliozzi uses the perpetual inventory method. Migliozzi Inc.Income StatementFor the Month Ended July 31 $- Select - - Select - $- Select - Selling and administrative expenses: blank blank $- Select - - Select - blank Total selling and administrative expenses blank fill in the blank 7f0b9bff2f96f8c_11 $- Select - Question Content…
Altanta Industries manufactures gadgets. In the month of March, the company incurred the following: Actual Gadgets produced 10,563 Direct Materials 20,000 purchased pounds 19,000 Direct Materials used pounds Cost of Direct $40,000 Materials purchased 2,463 Direct Labor Hours. hours Total Direct Labor Cost $36,566 The standards for production are: Direct Materials per gadget Cost of Direct Materials per pound Direct Labor per gadget Standards 3 lbs per gadget $5 per pound 18 minutes per gadget (.30 hours) Direct Labor Cost per gadget $6 per gadget What is the Direct Labor Rate Variance? Enter a favorable variance as a positive number. Enter an unfavorable variance as a negative number.
Chris Company produced and sold 1,000 units during its first month of operations. It reported the following cost and expenses for the month: • Direct materials: P69,000 • Direct labor: P35,000 • Variable manufacturing overhead: P15,000 • Fixed manufacturing overhead: P28,000 • Variable selling expenses: P12,000 • Fixed selling expenses: P18,000 • Variable administrative expenses: P4,000 Fixed administrative expenses: P25,000 How much is the product cost for financial accounting purposes? a. 119,000 b. 147,000 c. 206,000 d. 135,000
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