On April 1st, an automobile manufacturer had no beginning inventories. It purchased 8,400 batteries at a cost of $90 per battery. It withdrew 7,800 batteries from the storeroom during the month. Of these, 50 were used to replace batteries in cars being used by the company's traveling sales staff. The remaining batteries withdrawn from the storeroom were installed in cars being manufactured by the company. Of the cars in production during April, 80 percent were completed and transferred from work in process to finished goods. Of the cars completed during the month, 20 percent were unsold at April 30th. How much of the total battery cost would be included in Work in Process at the end of April?

On April 1st, an automobile manufacturer had no beginning inventories. It purchased 8,400 batteries at a cost of $90 per battery. It withdrew 7,800 batteries from the storeroom during the month. Of these, 50 were used to replace batteries in cars being used by the company's traveling sales staff. The remaining batteries withdrawn from the storeroom were installed in cars being manufactured by the company. Of the cars in production during April, 80 percent were completed and transferred from work in process to finished goods. Of the cars completed during the month, 20 percent were unsold at April 30th. How much of the total battery cost would be included in Work in Process at the end of April?

Name: On April 1st, an automobile manufacturer had no beginning inventories
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: On April 1st, an automobile manufacturer had no beginning inventories. It purchased 8,400 batteries at a cost of$90 per battery. It withdrew 7,800 batteries from the storeroom during the month. Of these, 50 were used toreplace batteries in cars bein

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Hindenburger, Inc., began operations on January 1. It made 5,000 burgers and sold 4,000 of them. Hindenburger incurred the following costs Raw materials $1,000 Wages of production workers 7,000 Rent for corporate headquarters 5,000 Depreciation on manufacturing equipment 2,000 Commissions paid to sales people 4,000 Calculate the Total Product Cost for the year ended December 31.
[The following information applies to the questions displayed below.]Information on Kwon Manufacturing’s activities for its first month of operations follows: Purchased $101,700 of raw materials on credit. Materials requisitions show the following materials used for the month. Job 201 $ 49,900 Job 202 25,300 Total direct materials 75,200 Indirect materials 10,320 Total materials used $ 85,520 Time tickets show the following labor used for the month. Job 201 $ 40,900 Job 202 14,300 Total direct labor 55,200 Indirect labor 25,900 Total labor used $ 81,100 Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate is 80% of direct materials cost. Transferred Job 201 to Finished Goods Inventory. (1) Sold Job 201 for $168,860 on credit. (2) Record cost of goods sold for Job 201. Incurred the following actual other overhead costs for the month. Depreciation of factory equipment $ 33,700 Rent on factory building (payable)…
Montrose Instrumentation produces measurement equipment. One component, used in a variety of the company's products, is critical and the supply chain often breaks. For that reason, Montrose has a policy to hold in inventory enough of the component to produce three month's worth of sales (one component is used in each unit of product in which it is used). On February 1, the company has 40,000 components in stock. Sales of the units in which the component is used in each of the next six months are estimated to be as follows: February March April May June July 34,750 28,750 30,250 35,800 32,400 44,360 Parts are purchased at a wholesale price of $55. The vendor has a financing arrangement by which Montrose pays 40 percent of the purchase price in the month when the components are delivered and 60 percent in the following month. Montrose purchased 42,500 parts in January. Required: a. Estimate purchases of the component (in units) for February and March. b. Estimate the cash disbursements…
Montrose Instrumentation produces measurement equipment. One component, used in a variety of the company's products, is critical and the supply chain often breaks. For that reason, Montrose has a policy to hold in inventory enough of the component to produce three month's worth of sales (one component is used in each unit of product in which it is used). On February 1, the company has 31,000 components in stock. Sales of the units in which the component is used in each of the next six months are estimated to be as follows: February 32,500 March 26,500 April 28,000 May 33,550 June 30,150 July 42,110 Parts are purchased at a wholesale price of $46. The vendor has a financing arrangement by which Montrose pays 40 percent of the purchase price in the month when the components are delivered and 60 percent in the following month. Montrose purchased 38,000 parts in January. Required: Estimate purchases of the component (in units) for February and March. Estimate the cash…
Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service locations this month. Job J57 and Job K52 involve 15 acres of landscaped terrain which will require special-order sprinkler heads to meet the specifications of the project. Using a job cost system to produce these parts, the following events occurred during December. Raw materials were requisitioned from the company's inventory on December 2 for $5,478; on December 8 for $1.140; and on December 14 for $3,732. In each instance, two-thirds (2/3) of these materials were for J57 and the rest for K52. Six time tickets were turned in for these two projects for a total amount of 18 hours of work. All the workers were paid $16.50 per hour. The time tickets were dated December 3, December 9, and December 15. On each of those days, 6 labor hours were spent on these jobs, two-thirds (2/3) for J57 and the rest for K52. The predetermined overhead rate is based on machine hours. The estimated…
The Devon Motor Company produces automobiles. On April 1, the company had no beginning inventories, and it purchased 7,060 batteries at a cost of $130 per battery. It withdrew 6,500 batteries from the storeroom during the month. Of these, 100 were used to replace batteries in cars used by the company's traveling sales staff. The remaining 6,400 batteries withdrawn from the storeroom were placed in cars being produced by the company. Of the cars in production during April, 90 percent were completed and transferred from work in process to finished goods. Of the cars completed during the month, 30 percent were unsold at April 30. Required: 1. and 2. Determine the cost of batteries appearing in each of the following accounts on April 30 and select whether each of the accounts would appear on the balance sheet or on the income statement. Name of the Account Cost Appears on: Raw Materials $ 560 Balance Sheet Work in Process Finished Goods Cost of Goods Sold Selling Expense
Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $476,100, and management budgeted 34,500 direct labor-hours. The company had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of April. These transactions were recorded during April: April insurance cost for the manufacturing property and equipment was $1,900. The premium had been paid in January. Recorded $1,095 depreciation on an administrative asset. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials). The purchase was on credit. Paid factory utility bill, $6,590, in cash. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs. Incurred and paid other factory overhead costs, $6,330. Purchased $25,500 of materials. Direct materials included unpolished…
on August 4, Carrothers Company purchased on account 31,000 units of materials at $16 per unit. During August, raw materials were requisitioned for production as follows: 7,900 units for Job 50 at $11 per unit and 6,100 units for Job 56 at $16 per unit. Journalize the entry on August 4 to record the purchase. If an amount box does not require an entry, leave it blank. Journalize the entry on August 31 to record the requisition from the materials storeroom. If an amount box does not require an entry, leave it blank.
World Strings produces student-grade violins for beginning violin students. The company produced 2,700 violins in its first month of operations. At month end, 800 finished violins remained unsold. There was no inventory in work in process. Violins were sold for $120.00 each. Total costs from the month are as follows: The table shows the following data with cost in dollars: Direct materials used - 120,300 Direct labor - 65,000 Variable manufacturing overhead - 28,000 Fixed manufacturing overhead - 64,800 Variable selling and administrative expenses - 10,000 Fixed selling and administrative expenses - 12,900 437 The company prepares traditional (absorption costing) income statements for its bankers. World Strings would also like to prepare contribution margin income statements for management use. Compute the following amounts that would be shown on these income statements: 1. Gross profit 2. Contribution margin 3. Total expenses shown below the gross profit line 4. Total expenses…
During December of the current year, Parker Company purchased $3,500,000 raw materials. During the month, Parker incurred $2,040,000 direct labor cost and applied 80% of direct labor cost. During the same month, there were changes in inventories as follows: Increase in raw materials $100,000; Decrease in work in process $150,000 and decrease in finished goods $75,000. If the goods available for sale is $7,500,000, what is the value of finished goods at December 31? $203,000 $578,000 $78,000 $75,000
Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $465,800, and management budgeted 34,000 direct labor-hours. The company had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of April. These transactions were recorded during April: April insurance cost for the manufacturing property and equipment was $1,850. The premium had been paid in January. Recorded $1,060 depreciation on an administrative asset. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials). Paid factory utility bill, $6,550, in cash. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs. Incurred and paid other factory overhead costs, $6,300. Purchased $25,000 of materials. Direct materials included unpolished semiprecious stones and gold.…
Mooresville Corporation manufactures reproductions of eighteenth-century, classical-style furniture. It uses a job costing system that applies factory overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $1,426,000, and management budgeted 92,000 direct labor hours. Mooresville had no Materials, Work-in-Process, or Finished Goods Inventory at the beginning of August. These transactions were recorded during August: Purchased 6,000 square feet of oak on account at $26 per square foot. Purchased 150 gallons of glue on account at $36 per gallon (indirect material). Requisitioned 4,200 square feet of oak and 41 gallons of glue for production. Incurred and paid payroll costs of $208,900. Of this amount, $56,000 were indirect labor costs; direct labor personnel earned $22 per hour. Paid factory utility bill, $16,930 in cash. August’s insurance cost for the manufacturing property and equipment was $4,000. The premium had been paid in March. Incurred $9,150…