Komal Industries produces a single product. Last year, Komal manufactured 32,500 units and sold 27,400 units. The production costs for the year were as follows: Direct materials Direct labor $245,600 $159,750 Variable manufacturing overhead $268,400 Fixed manufacturing overhead $610,200 Sales totaled $1,210,800 for the year, variable selling and administrative expenses totaled $153,400, and fixed selling and administrative expenses totaled $230,750. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the year would be valued at: a. $232,320 b. $275,880 c. $260,480 d. $201,560

Komal Industries produces a single product. Last year, Komal manufactured 32,500 units and sold 27,400 units. The production costs for the year were as follows: Direct materials Direct labor $245,600 $159,750 Variable manufacturing overhead $268,400 Fixed manufacturing overhead $610,200 Sales totaled $1,210,800 for the year, variable selling and administrative expenses totaled $153,400, and fixed selling and administrative expenses totaled $230,750. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the year would be valued at: a. $232,320 b. $275,880 c. $260,480 d. $201,560

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
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