Kyrie Company produces different sizes of basketballs. The following costs were incurred during the year. Materials P65,000 (P 15,000 is indirect) 70,000 (P 18,000 is indirect) 95,000 (including indirect materinls and indirect Inbor) 2,600 18,600 Labor Factory overhend General and administrative expenses Office salaries There were no work in process at the end of the year, 5,000 units were produced, and 90% of the units produced were sold Required: 1. Compute the prime costs 2. Compute the conversion costs 3. Compute the total product costs

Kyrie Company produces different sizes of basketballs. The following costs were incurred during the year. Materials P65,000 (P 15,000 is indirect) 70,000 (P 18,000 is indirect) 95,000 (including indirect materinls and indirect Inbor) 2,600 18,600 Labor Factory overhend General and administrative expenses Office salaries There were no work in process at the end of the year, 5,000 units were produced, and 90% of the units produced were sold Required: 1. Compute the prime costs 2. Compute the conversion costs 3. Compute the total product costs

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 22E: Ellerson 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?
Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.
The company's direct labor costs were $1,353,600 and its total a st of goods manu- percentage of direct labor costs. The ending inventories include the following'costs: Problem 2-5 Detomining Cosł ol Goods Sold factured was $4,820,000 for the year. Manufacturing overhead costs are a constant · materials ($192,200), work in process ($128,000), and finished goods ($236,000). pany's 1990 manufacturing performance. The beginning inventories included raw The treasurer of Halc Company has accumulated cost data concerning the com $1,353,600 and its total a st of goods manu- The company's direct labor costs were Raw Work in Process Finished Materials Goods $176,000 $44,000 44,800 $ 60,000 52,800 79,200 $192,000 Raw materials Direct labor. Manufacturing overhead Tatal ending inventory. $176,000 Required: Prepare a schedule showing the cost of goods sold for 1990.
XYZ Company incurred the following costs for the month of August when it observed an activity level of 5,000 units Vanable co 532.500 Fixed costs $25,000; Mixed costs $21,500, Total costs $79,000. During October, the activity level was 16,000 units and the cnts incurred were $178,000 If the activity level were expected to be 7,000 units for the month of December, what amount of al costs would be expected? Select one DaS106,000 Ob$124,000 Oc None of the answers given a S115.000 S97.000
Last year, Buckner & Jones Company incurred the following costs: Direct materials $42,000 Direct labor 63,000 Manufacturing overhead 104,500 Selling expenses 25,200 Administrative expenses 23,100 Buckner & Jones produced and sold 2,060 units at a sales price of $131.25 each. Assume that beginning and ending inventories of materials, work in process, and finished goods were zero. The total product costs were:
Hello, Buck and Company incurred the following costs during August: Raw materials purchased $41,400 Direct labor ($13.6 per hour) 60,384 Manufacturing overhead (actual) 90,420 Selling expenses 31,890 Administrative expenses 14,070 Interest expense 6,112 Manufacturing overhead is applied on the basis of $20 per direct labor hour. Assume that overapplied or underapplied overhead is transferred to the cost of goods sold only at the end of the year. During the month, 4120 units of product were manufactured and 4,400 units of product were sold. On August 1 and August 31, Buck and Company carried the following inventory balances. August 1 August 31 Raw materials $19,000 $17,800 Work in progress 53,000 56,000 Finished goods 40,100 27,267 Question a-1: Prepare a statement of costs of goods manufactured for the month of August. (Amounts to be deducted should be indicated by a minus sign). Buck and Company Statement of Goods manufactured for the month of…
1. By how much did the company overallocate or underallocate MOH for the year? 2. Was MOH overallocated or underallocated for the year? How do you know? attached in ss below thanks fefe
The manufacturing cost of XYZ Company during October includes prime costs of OMR85,000. The manufacturing overhead is 20% of the month's total manufacturing costs. If beginning work in process was OMR25,000 and ending work in process is OMR39,000, the cost of goods manufactured is: Select one: O a. OMR120,250 O b. OMR92,250 O c. None of the answers given O d. OMR88,000 O e. OMR94,250
Aerobill Inc. makes 7,500 units of a part each year. This part is used in one of the company's products. The company's Accounting Department reports the following costs of producing the part at the current production volume: Direct materials $10.25 per unit Direct labor $15.50 per unit Variable overhead $5.90 per unit Supervisor's salary $81,000 per year Depreciation of special $15,500 per year equipment Allocated general $2.10 per unit overhead An outside supplier has offered to make the part for Aerobill and sell it to Aerobill for $41.50 per unit. If this offer is accepted, then the supervisor's salary and all variable costs can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company and would be reallocated if the part were outsourced. If the part is outsourced, then the space used to produce the part could be used to make more of one of…
The Childers Company manufactures widgets. During the fiscal year just ended, the company incurred prime costs of P1,500,000 and conversion costs of P1,800,000. Overhead is applied at the rate of 200% of direct labor cost. How much of the above costs represent material cost?
The Rock Company produces basketballs. It incurred the following costs during the year. Direct materials Direct labor Fixed manufacturing overhead Variable manufacturing overhead Selling costs $11,520 $20,480 $9,600 $23,520 $16,800 What are the total product costs for the company under absorption costing? Total product costs
Pink Company incurred the following costs during the month: direct labor, P120,000; factory overhead, P108,000, and direct materials purchases, P160,000 inventories show the following costs: Beginning Ending Finished goods P27,000 P30,000 Work in process P61,500 P57,500 Direct materials P37,500 P 43,500 How much is the cost of goods manufactured?