Exercise 14-4 (Algo) Classifying costs for a service company LO C2Listed below are costs of services provided by an airline company. Consider the cost object to be a flight. Flight attendants and pilotsare paid based on hours of flight time.Classify each cost as direct, indirect, selling, or general and administrative.CostClassification1. Accounting manager salary2. Depreciation (straight-line) on plane3. Fuel used for plane flight4. Flight attendant wages for flight5. Pilot wages for flight6. Aircraft maintenance manager salary7. Snacks served on airplanes8. Maintenance on airplanesEIndirectMcGraw< Pry9 of 10Type here to searchNext Required informationUse the following information for the Exercises below. (Static)(The following information applies to the questions displayed below.]Note: Assume all raw materials were used as direct materials.Beginningof YearEnd of YearInventoriesRaw materials inventoryWork in process inventoryFinished goods inventory$ 6,000$ 7,00012,0008,0009,0005,000Activity during current yearRaw materials purchasedDirect laborFactory overhead$ 123,00094,00039,000QS 14-16 (Static) Computing direct materials used LO P2Compute the cost of direct materials used for the current year.Cost of Direct Material Used is Computed as:< Prevof 10here to searchNext >

Réquired Use the following information for the Exercises below. (Static) (The following information applies to the questions displayed below.] Note: Assume all raw materials were used as direct materials. Beginning of Year End of Year Inventories Raw materials inventory Work in process inventory Finished goods inventory $ 6,000 12,000 8,000 $ 7,000 9,000 5,000 Activity during current year Raw materials purchased $ 123,000 94,000 39,000 Direct labor Factory overhead QS 14-16 (Static) Computing direct materials used LO P2 Compute the cost of direct materials used for the current year.

Réquired Use the following information for the Exercises below. (Static) (The following information applies to the questions displayed below.] Note: Assume all raw materials were used as direct materials. Beginning of Year End of Year Inventories Raw materials inventory Work in process inventory Finished goods inventory $ 6,000 12,000 8,000 $ 7,000 9,000 5,000 Activity during current year Raw materials purchased $ 123,000 94,000 39,000 Direct labor Factory overhead QS 14-16 (Static) Computing direct materials used LO P2 Compute the cost of direct materials used for the current year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cost of materials purchases on account Cost of materials requisitioned (includes $4,600 of indirect) $68,800 $51,800 Direct labor costs incurred $77,400 $97,600 $223,400 $151,800 Manufacturing overhead costs incurred, including indirect materials Cost of goods manufactured Cost of goods sold Beginning raw materials inventory Beginning work in process inventory Beginning finished goods inventory $15,100 $30,600 $33,700 Predetermined manufacturing overhead rate (as % of direct labor cost) 140% What is the balance in work in process inventory at the end of the year? A. $50,800 B. $19,540 C. $24,500 D. $40,160
Required information Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] Note: Assume all raw materials were used as direct materials. Beginning of Year End of Year Inventories Raw materials inventory $ 6,300 $ 8,100 Work in process inventory 12, 600 9,300 Finished goods inventory 9, 100 5,800 Activity during current year Raw materials purchased $ 124,100 Direct labor 94,300 Factory overhead 39,900 QS 14-17 (Algo) Schedule of cost of goods manufactured LO P2 Factory overhead of $39,900 consists of Indirect labor of $20,300, Depreciation expense-Factory of $15,300, and Factory utilities of $4,300. Compute total manufacturing costs. Prepare a schedule of cost of goods manufactured.
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Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard Quantity and Cost 7 pounds @ $8 per pound 3 DLH @ $15 per DLH 3 DLH @$13 per DLH Actual Results 62,100 pounds @ $8.10 per pound 26,000 hours @ $15.50 per hour $ 349,600 8,800 units Compute the (1) direct labor rate variance and (2) direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.) AH = Actual Hours SH=Standard Hours AR = Actual Rate SR Standard Rate Actual Cost $ 0 $ 00 0 0 $ 0 Standard Cost
Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard Quantity and Cost 7 pounds @ $8 per pound 3 DLH @ $16 per DLH 3 DLH @ $12 per DLH Actual Results 62,900 pounds @ $8.20 per pound 26,500 hours @ $16.50 per hour 8,900 units $ 325,700 Compute the (1) direct labor rate variance and (2) direct labor efficiency variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.) AH Actual Hours SH Standard Hours Standard Rate AR Actual Rate SR Actual Cost G < Prev 8 of 8 Next Standard Cost
Cornerstones of Cost Management 4th Ed. - Chapter 4 Scenario II: Goodmark Company produces two types of birthday cards: scented and regular. Goodmark uses the Overhead Control account to accumulate both actual and applied overhead. The company has the following data for the past year: Actual overhead $760,000 Sales $3,500,000 Materials used $1,100,000 Applied Overhead (in each account): Work in process $72,000 Finished goods 216,000 Cost of goods sold 432,000 Required: 1. Calculate the overhead variance for the year and label it under- or overapplied. Overhead variance: $ ________ (underpaid or overpaid) 2. Assuming the variance is not material, the following closing entry would be made: Debit _________ for $___________ and credit _______ for $ __________ 3. If the overhead variance is material, indicate how much of the variance would be __________ to each of the following accounts (if an amount is zero, enter "0"): Work in…
Direct Materials Used, Cost of Goods Manufactured In September, Lauren Ashley Company purchased materials costing $200,000 and incurred direct labor cost of $120,000. Overhead totaled $325,000 for the month. Information on inventories was as follows: Materials Work in process Finished goods Required: September 1 September 30 $120,000 80,000 70,000 $130,000 90,000 65,000 Download Excel spreadsheet 1. What was the cost of direct materials used in September? 2. What was the total manufacturing cost in September? 3. What was the cost of goods manufactured for September? 4. Assume that Lauren Ashley Company's monthly incurred direct labor cost increased by 25% and total overhead costs decreased by 20%. Using Excel (or some other spreadsheet software tool), calculate Lauren Ashely's new cost of goods manufactured that results from the changes in direct labor cost and overhead costs. Even for a relatively simple exercise, this requirement illustrates the time and effort savings of utilizing…
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If the balance of Work in Process on August 31 is $220,000, what was the amount debited to Work in Process for direct materials in August? a.$390,000 b.$525,000 c.$580,000 d.$170,000
Process Cost Journal Entries The cost of materials transferred into the Rolling Department of Keystone Steel Company is $542,500 from the Casting Department. The conversion cost for the period in the Rolling Department is $110,600 ($68,200 factory overhead applied and $42,400 direct labor). The total cost transferred to Finished Goods for the period was $632,100. The Rolling Department had a beginning inventory of $29,100. a1. Journalize the cost of transferred-in materials. a2. Journalize the conversion costs. If an amount box does not require an entry, leave it blank. a3. Journalize the costs transferred out to Finished Goods b. Determine the balance of Work in Process-Rolling at the end of the period.