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Gibson Manufacturing Company produced 2,600 units of inventory in January, Year 2. It expects to during the remaining 11 months of the year. In other words, total production for year 2 is estimated t and direct labor costs are $79 and $65 per unit, respectively. Gibson expects to incur the following during the year 2 accounting period. Production supplies Supervisor salary Depreciation on equipment Utilities Rental fee on manufacturing facilities $ 6,200 188,000 136,000 19,000 262,800

Gibson Manufacturing Company produced 2,600 units of inventory in January, Year 2. It expects to during the remaining 11 months of the year. In other words, total production for year 2 is estimated t and direct labor costs are $79 and $65 per unit, respectively. Gibson expects to incur the following during the year 2 accounting period. Production supplies Supervisor salary Depreciation on equipment Utilities Rental fee on manufacturing facilities $ 6,200 188,000 136,000 19,000 262,800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Gibson Manufacturing Company produced 2,600 units of inventory in January, Year 2. It expects to produce an additional 9,400 units during the remaining 11 months of the year. In other words, total production for year 2 is estimated to be 12,000 units. Direct materials and direct labor costs are $79 and $65 per unit, respectively. Gibson expects to incur the following manufacturing overhead costs during the year 2 accounting period. Production supplies Supervisor salary Depreciation on equipment Utilities Rental fee on manufacturing facilities Required a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. b. Determine the cost of the 2,600 units of product made in January. Required A Required B $ Complete this question by entering your answers in the tabs below. 6,200 188,000 136,000 19,000 262,800 Predetermined overhead rate Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. (Round your answer to 2 decimal places.) per unit < Required A Required B >
Transcribed Image Text:Gibson Manufacturing Company produced 2,600 units of inventory in January, Year 2. It expects to produce an additional 9,400 units during the remaining 11 months of the year. In other words, total production for year 2 is estimated to be 12,000 units. Direct materials and direct labor costs are $79 and $65 per unit, respectively. Gibson expects to incur the following manufacturing overhead costs during the year 2 accounting period. Production supplies Supervisor salary Depreciation on equipment Utilities Rental fee on manufacturing facilities Required a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. b. Determine the cost of the 2,600 units of product made in January. Required A Required B $ Complete this question by entering your answers in the tabs below. 6,200 188,000 136,000 19,000 262,800 Predetermined overhead rate Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. (Round your answer to 2 decimal places.) per unit < Required A Required B >
Gibson Manufacturing Company produced 2,600 units of inventory in January, Year 2. It expects to produce an additional 9,400 units during the remaining 11 months of the year. In other words, total production for year 2 is estimated to be 12,000 units. Direct materials and direct labor costs are $79 and $65 per unit, respectively. Gibson expects to incur the following manufacturing overhead costs during the year 2 accounting period. Production supplies Supervisor salary Depreciation on equipment Utilities Rental fee on manufacturing facilities Required a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. b. Determine the cost of the 2,600 units of product made in January. Required A Required B $ Complete this question by entering your answers in the tabs below. 6, 200 188,000 136,000 19,000 262,800 Indirect overhead costs Direct materials Direct labor Total Determine the cost of the 2,600 units of product made in January. Allocated Cost $ < Required A Required B >
Transcribed Image Text:Gibson Manufacturing Company produced 2,600 units of inventory in January, Year 2. It expects to produce an additional 9,400 units during the remaining 11 months of the year. In other words, total production for year 2 is estimated to be 12,000 units. Direct materials and direct labor costs are $79 and $65 per unit, respectively. Gibson expects to incur the following manufacturing overhead costs during the year 2 accounting period. Production supplies Supervisor salary Depreciation on equipment Utilities Rental fee on manufacturing facilities Required a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. b. Determine the cost of the 2,600 units of product made in January. Required A Required B $ Complete this question by entering your answers in the tabs below. 6, 200 188,000 136,000 19,000 262,800 Indirect overhead costs Direct materials Direct labor Total Determine the cost of the 2,600 units of product made in January. Allocated Cost $ < Required A Required B >
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