JK Company, located in Indonesia, specializes in producing sets of wooden patio furniture consisting of a table and four chairs. The company is currently operating at 80% of its full capacity of 5,000 sets per quarter. Quarterly cost data at this level of operations follow: Factory labour, direct Advertising Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building General office supplies (billing) General office salaries Direct materials used (wood, bolts, etc.) Utilities, factory $360,000 90,000 100,000 15,500 180,000 6,500 26,000 18,000 28,000 23,000 9,000 85,000 224,000 55,000 Required: 1. Enter each cost item on your answer sheet, placing the dollar amount of each cost item under the appropriate headings. As examples, this has been done already for the first two items in the preceding list. Note that each cost item is classified in two ways: first, as variable or fixed, with respect to the number of units produced and sold, and, second, as a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as being either direct or indirect as shown.)
JK Company, located in Indonesia, specializes in producing sets of wooden patio furniture consisting of a table and four chairs. The company is currently operating at 80% of its full capacity of 5,000 sets per quarter. Quarterly cost data at this level of operations follow: Factory labour, direct Advertising Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building General office supplies (billing) General office salaries Direct materials used (wood, bolts, etc.) Utilities, factory $360,000 90,000 100,000 15,500 180,000 6,500 26,000 18,000 28,000 23,000 9,000 85,000 224,000 55,000 Required: 1. Enter each cost item on your answer sheet, placing the dollar amount of each cost item under the appropriate headings. As examples, this has been done already for the first two items in the preceding list. Note that each cost item is classified in two ways: first, as variable or fixed, with respect to the number of units produced and sold, and, second, as a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as being either direct or indirect as shown.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:JK Company, located in Indonesia, specializes in producing sets of wooden patio furniture consisting of a table and four chairs. The
company is currently operating at 80% of its full capacity of 5,000 sets per quarter. Quarterly cost data at this level of operations
follow:
Factory labour, direct
Advertising
Factory supervision
Property taxes, factory building
Sales commissions
Insurance, factory
Depreciation, office equipment
Lease cost, factory equipment
Indirect materials, factory
Depreciation, factory building
General office supplies (billing)
General office salaries
Direct materials used (wood, bolts, etc.)
Utilities, factory
$360,000
90,000
100,000
15,500
180,000
6,500
26,000
18,000
28,000
23,000
9,000
85,000
224,000
55,000
Required:
1. Enter each cost item on your answer sheet, placing the dollar amount of each cost item under the appropriate headings. As
examples, this has been done already for the first two items in the preceding list. Note that each cost item is classified in two ways:
first, as variable or fixed, with respect to the number of units produced and sold, and, second, as a selling and administrative cost or a
product cost. (If the item is a product cost, it should also be classified as being either direct or indirect as shown.)
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