Otsego Industries manufactured 300,000 units of product last year and identified the following costs associated with themanufacturing activity:Variable costs:Direct materials usedDirect laborIndirect materials and suppliesPower to run plant equipmentFixed costs:Supervisory salariesPlant utilities (other than for plant equipment)Depreciation on plant and equipmentProperty taxes on buildingAnswer is not complete.$ 10,965.00$ 8,160.00$ 19,125.00($000)$ 6,120.04,060.01,420.01,300.0Required:Unit variable costs and total fixed costs are expected to remain unchanged in the following year. However, management expects aslowdown in sales, because of the economy in the following year. Calculate the unit cost and the total cost if 255,000 units areproduced next year.Note: Enter your total cost answers in thousands. Round your answers to 2 decimal places.Total variable costsTotal fixed costsTotal costsUnit costs$ 2,460.01,896.72,285.01,518.3

The variable cost per unit and fixed costs in total remain constant at every level of production.…

Otsego Industries manufactured 300,000 units of product last year and identified the following costs associated with the manufacturing activity: Variable costs: Direct materials used Direct labor Indirect materials and supplies Power to run plant equipment Fixed costs: Supervisory salaries Plant utilities (other than for plant equipment) Depreciation on plant and equipment Property taxes on building (5000) $ 6,120.0 4,060.0 1,420.0 1,300.0 $ 2,460.0 1,896.7 2,285.0 1,518.3 Required: Unit variable costs and total fixed costs are expected to remain unchanged in the following year. However, management expects a slowdown in sales, because of the economy in the following year. Calculate the unit cost and the total cost if 255,000 units are produced next year. Note: Enter your total cost answers in thousands. Round your answers to 2 decimal places.

Otsego Industries manufactured 300,000 units of product last year and identified the following costs associated with the manufacturing activity: Variable costs: Direct materials used Direct labor Indirect materials and supplies Power to run plant equipment Fixed costs: Supervisory salaries Plant utilities (other than for plant equipment) Depreciation on plant and equipment Property taxes on building (5000) $ 6,120.0 4,060.0 1,420.0 1,300.0 $ 2,460.0 1,896.7 2,285.0 1,518.3 Required: Unit variable costs and total fixed costs are expected to remain unchanged in the following year. However, management expects a slowdown in sales, because of the economy in the following year. Calculate the unit cost and the total cost if 255,000 units are produced next year. Note: Enter your total cost answers in thousands. Round your answers to 2 decimal places.

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

Please answer all parts in its entirety and bold the answers only. Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 44,000 Rets per year. Costs associated with this level of production and sales are given below: Unit Total Direct materials $ 15 $ 660,000 Direct labor 10 440,000 Variable manufacturing overhead 3 132,000 Fixed manufacturing overhead 7 308,000 Variable selling expense 2 88,000 Fixed selling expense 6 264,000 Total cost $ 43 $ 1,892,000 The Rets normally sell for $48 each. Fixed manufacturing overhead is $308,000 per year within the range of 37,000 through 44,000 Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 37,000 Rets through regular channels next year. A large retail chain has offered to purchase 7,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions…
Question: Alton Company produces metal belts. During the current month, the company incurred the following product costs: Raw materials $84,000 Direct labor $52,000 Electricity used in the Factory $22,000 Factory foreperson salary $3,100 Maintenance of factory machinery $2,000 What are Alton Company's direct product costs?
Statement 1: Depreciation on equipment a company uses in its selling and administrative activities would be classified as a product cost. Statement 2: A publisher that sells its books trough agents who are paid a constant percentage commission on each book sold would classify the commissions as variable cost. Statement 3: The cost of goods manufacture is calculated by adding the amount of work-in-process at the end of the year to the cost of raw materials used, direct labor worked, and manufacturing overhead incurred for the year and then subtracting work-in-process at the beginning of the year. Statement 4: Variable cost per unit is unaffected by changes in activity. Statement 5: A cost is either direct or indirect. Direct is considered as a prime cost while indirect is considered a conversion cost. a. All statements are true d. Statements 1, 4 and 5 are true b. Statements 1, 3 and 5 are true e.Statements 2, 4 and 5 are true c.Statements 1, 2 and 4 are true f. Statements 2, 3 and 4…
Provide solution of the question
S Conner's Fixtures produces and sells a single product, a specialized plumbing fixture. The business began operations on January 1 this year and its costs incurred during the year include the following: Variable costs (based on units produced): Direct materials cost Direct manufacturing labor costs Indirect manufacturing costs Administration and marketing Fixed costs: Administration and marketing costs Indirect manufacturing costs $ 24,000 108,000 21,600 13,500 72,000 24,000 At the end of the first year (December 31), direct materials inventory consisted of 7,500 pounds of material. Production in that year was 10,000 fixtures. All prices and unit variable costs remained constant during the year. Sales revenue for year 1 was $293,250. Finished goods inventory was $24.420 on December 31. Each finished fixture requires 3.20 pounds of material. Required: a. Compute the direct materials inventory cost, December 31. b. Compute the finished goods ending inventory in units (fixtures) on…
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor $ 10 $4 Variable manufacturing overhead $2 Variable selling and administrative $2 Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $ 374,000 $ 284,000 During the year, the company produced 34,000 units and sold 26,000 units. The selling price of the company's product is $44 per unit. b. Prepare an income statement for the year.
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production and sales are given below: Unit Total Direct materials $ 15 510,000 272,000 102,000 170,000 68,000 Direct labor 8 Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense 3 5 2. 6 204,000 Total cost $ 39 $ 1,326,000 The Rets normally sell for $44 each. Fixed manufacturing overhead is $170,000 per year within the range of 28,000 through 34,000 Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 28,000 Rets through regular channels next year. A large retail chain has offered to purchase 6,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Company would…
company manufactures the timer unit used in each of its systems. Based on an annual production of 49,500 timers, the company has calculated the following unit costs. Direct fixed costs include supervisory and clerical salaries and equipment depreciation. Direct materials $11 Direct labor Variable manufacturing overhead 3 Direct fixed manufacturing overhead 8 Allocated fixed manufacturing overhead 6 Total unit cost $35 7 (30% salaries, 70% depreciation)
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 42,000 Rets per year. Costs associated with this level of production and sales are given below: Unit Total Direct materials $ 20 2$ 840,000 336,000 126,000 294,000 84,000 252,000 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense 3 7 6. Total cost $ 46 $ 1,932,000 The Rets normally sell for $51 each. Fixed manufacturing overhead is $294,000 per year within the range of 35,000 through 42,000 Rets per year. Required: 1. Assume that due to a rec chain has offered to purchase 7,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Company would have to purchase a special machine to engrave the retail chain's name on the 7,000 units. This machine…
18. Cha Company reported the following costs: Direct materials-beginning 130,000 Direct materials-ending 68,000 246,000 Finished goods-beginning Finished goods-ending Work-in-process-beginning Work-in-process-ending 204,000 168,000 144,000 Advertising costs Leasing costs-plant Depreciation-plant equip. Property taxes-plant Utilities-plant Utilities-administration Direct material purchases Indirect manufacturing labor Direct manufacturing labor Sales salaries Administration costs 48,000 $ 64,000 224,000 28,000 24,000 20,000 256,000 96,000 212,000 124,000 68,000 Using the data above, prepare Cha Company's Schedule of Cost of Goods Manufactured. Show your work for partial credit.
9
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 14 Direct labor $ 8 Variable manufacturing overhead $ 2 Variable selling and administrative $2 Fixed costs per year: Fixed manufacturing overhead $ 250,000 Fixed selling and administrative $ 160,000 During the year, the company produced 25,000 units and sold 21,000 units. The selling price of the company's product is $47 per unit. Required: Assume the company uses absorption costing: Compute the unit product cost. Prepare an income statement for the year. Assume the company uses variable costing: Compute the unit product cost. Prepare an income statement for the year.