Juan Rubio is the manager of the production department of Baird Corporation. Baird incurred the following costs during Year 2Production department supplies$ 6,800Administrative salaries392,000584,000533,200Production wagesMaterials usedDepreciation on manufacturing equipmentCorporate-level rental expenseProperty taxesSales salariesRequiredPrepare a list of expenditures that Mr. Rubio controls.Controllable ItemsTotalAmount356,600249,00060,600296,800

Controllable costs are the costs of a business that are under full control of the company. Labor…

Juan Rubio is the manager of the production department of Baird Corporation. Baird incurred the foll Production department supplies $ 6,800 Administrative salaries 392,000 Production wages 584,000 Materials used 533,200 356,600 Depreciation on manufacturing equipment Corporate-level rental expense Property taxes Sales salaries 249,000 60,600 296,800

Juan Rubio is the manager of the production department of Baird Corporation. Baird incurred the foll Production department supplies $ 6,800 Administrative salaries 392,000 Production wages 584,000 Materials used 533,200 356,600 Depreciation on manufacturing equipment Corporate-level rental expense Property taxes Sales salaries 249,000 60,600 296,800

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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Assume that a manufacturing company incurred the following costs: $ 90,000 $ 40,000 $ 35,000 $ 15,000 $ 4,000 $ 5,000 $ 20,000 $ 1,000 $ 2,500 $ 105,000 $ 6,000 $ 7,000 Direct labor Advertising Factory supervision Sales commissions Depreciation, office equipment Indirect materials Depreciation, factory building Administrative office salaries Utilities, factory Direct materials Insurance, factory Property taxes, factory What is the total amount of conversion costs?
The following data from the just completed year are taken from the accounting records of Mason Company: $ 653,000 $ 88,000 $ 130,000 $ 100,000 $ 40,000 $ 225,000 $ 202,000 Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs Inventories Raw materials Work in process Finished goods Beginning $ 8,900 $ 5,500 $ 73,000 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. 3. Prepare an income statement. Complete this question by entering your answers in the tabs below. Ending $ 10,600 $ 20,100 $ 25,800 Required 1 Required 2 Required 3 Direct materials: Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct…
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Base Salaries $ 30,000 Number of employees Depreciation 20,000 Cost of goods sold Advertising 40,000 Percentage of total sales Department Number of employees Sales Cost of goods sold Drilling 1,000 $ 325,000 $ 75,000 Grinding 1,500 475,000 125,000 Total 2,500 $ 800,000 $ 200,000 The amount of salaries that should be allocated to Grinding for the current period is:
Corporation manufactures computers. Assume that Mell: • allocates manufacturing overhead based on machine hours • estimated 13,000 machine hours and $93,000 of manufacturing overhead costs • actually used 14,000 machine hours and incurred the following actual costs: Indirect labor $14,000 Depreciation on plant 44,000 Machinery repair 13,000 Direct labor 77,000 Plant supplies 7,000 Plant utilities 7,000 Advertising 33,000 Sales commissions 22,000 What is Mell's predetermined overhead allocation rate?
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ABC Co. produces washers and dryers in an assembly-line process. Labor costs incurred during a recent period were: corporate executives, $500,000; assembly-line workers, $180,000; security guards, $45,000; and plant supervisor, $110,000. The total of ABC’s direct labor cost was: a. $235,000 b. $110,000 c. $155,000 d. $180,000
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Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Basis Salaries $40,000 Number of employees Depreciation Advertising 26,000 Cost of goods sold 60,000 Net sales Item Drilling Grinding Total Number of employees 1,800 2,700 4,500 Net sales $352,000 $528,000 $880,000 Cost of goods sold $110,200 $179,800 $290,000 The amount of depreciation that should be allocated to Grinding for the current period is: Multiple Choice $37,200. $26,000.