Problem 1.1 Below given is the manufacturing data: Beginning Ending material 180,000 220,000 Direct inventory Work-in inventory Finished inventory progress 360,000 goods 600,000 Purchased direct material 600,000 Problem 1.2 During its first year of operations, Peter's Plumbing Supply Co. had sales of $370,000, wrote off $5,900 of accounts as uncollectible using the direct write-off 240,000 method, and reported net income of $40,700. 800,000 Determine what the net income would have been if the allowance method had been used, and the company estimated that 1.75% of sales would be uncollectible. Problem 1.3 Why does cross-functional validation enhance accounting accuracy? a) Single reviews provide enough oversight. b) Multiple department perspectives catch hidden errors. c) Departments should work separately. d) Validation wastes resources. Direct labor Factory overhead Net sales Period cost 340,000 380,000 2,000,000 560,000 What is the cost of goods manufactured? A. 1,640,000 B. 1,650,000 C. 1,520,000

Problem 1.1 Below given is the manufacturing data: Beginning Ending material 180,000 220,000 Direct inventory Work-in inventory Finished inventory progress 360,000 goods 600,000 Purchased direct material 600,000 Problem 1.2 During its first year of operations, Peter's Plumbing Supply Co. had sales of $370,000, wrote off $5,900 of accounts as uncollectible using the direct write-off 240,000 method, and reported net income of $40,700. 800,000 Determine what the net income would have been if the allowance method had been used, and the company estimated that 1.75% of sales would be uncollectible. Problem 1.3 Why does cross-functional validation enhance accounting accuracy? a) Single reviews provide enough oversight. b) Multiple department perspectives catch hidden errors. c) Departments should work separately. d) Validation wastes resources. Direct labor Factory overhead Net sales Period cost 340,000 380,000 2,000,000 560,000 What is the cost of goods manufactured? A. 1,640,000 B. 1,650,000 C. 1,520,000

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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2 ABC supplier incurred the following actual costs during the year just ended: Direct material used $210,500 Direct labour 185 000 Manufacturing overhead 380,000. The inventory balances, on 1 January, were as follows: Raw material $47 000 Work in process $61 500 Finished goods $60 000. Each of these inventory balances was 10 percent higher at the end of the year. The cost of goods sold is: Select one: a. $765,250 b. $762,850 c. $760,000 d. None of the answers given 3 David Furniture Ltd incurred the following actual costs during the year just ended: Direct material used $200,020 Direct labour $190,000 Manufacturing overhead $278, 000. The inventory balances, on 1 January, were as follows: Raw material $47 000; Work in process $61 500 Finished goods $65 000. Each of these inventory balances was 10 percent lower at the end of the year. The cost of goods manufactured is: Select one: a. None of the answers given b. $674,000 c. $670,000 d. 650,000 4 ABC Ltd prepares…
Time remaining: 00:08:51 Accounting The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company’s products is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data: ProductDemand Next year (units)Selling Price per UnitDirect MaterialsDirect LaborDebbie74,000$ 25.50$ 5.10$ 3.85Trish66,000$ 5.20$ 2.00$ 1.12Sarah59,000$ 33.00$ 10.04$ 5.95Mike40,000$ 17.00$ 4.40$ 4.55Sewing kit349,000$ 10.40$ 5.60$ 0.77 The following additional information is available: The company’s plant has a capacity of 152,800 direct labor-hours per year on a single-shift basis. The company’s present employees and equipment can produce all five products. The direct labor rate of $7 per hour is expected to remain unchanged during the coming year. Fixed manufacturing costs total $625,000 per year. Variable overhead costs are $3 per direct labor-hour. All of…
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Year 1 financial data for the ABC Company is as follows:Sales $5,000,000 ,Direct materials 850,000 ,Direct manufacturing labor 1,700,000 ,Variable manufacturing overhead 400,000 ,Fixed manufacturing overhead 750,000 ,Variable SG&A 150,000 ,Fixed SG&A 250,000 ,Under the absorption method, Year 1 Cost of Goods sold will be: a. $2,550,000 b. $3,100,000 c. $2,950,000 d. $3,700,000
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