Shannon Sharpe owns and operates three Frazer Speedo outlets in Columbus, OH. Frazer Speedo is an oil and lubrication service outlet - one ofmany outlets popular throughout the Midwest. The Frazer Speedo outlets also change transmission and power steering fluids. In May, purchasesof materials equaled $80,000, the beginning inventory of materials was $47,300, and the ending inventory of materials was $15,250. Payments todirect labor during the month totaled $63,000. Overhead incurred was $110,000. The Columbus outlet also spent $5,000 on advertising during themonth. A franchise fee of $2,000 per outlet is paid every month. Revenues for May were $400,000What is the Prime Cost for May ?O $80,000O $143,000$175,050O $110,000

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Answered: Shannon Sharpe owns and operates three…

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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Jabari Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 16,000 tons from the Casting Department in October. During October, the Rolling Department completed 15,600 tons, including 800 tons of work in process on October 1. The ending work in process inventory on October 31 was 1,200 tons. How many tons were started and completed during October? fill in the blank 1 of 1 tons
Kenos Pte Ltd manufactures all types of custom-made furniture. It uses a job-costing system and applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totalled $2,400,000. It has a maximum capacity of 320,000 machine hours. However, it is budgeted to be able to use 75% of this capacity during this period. On 31 July, Kenos Pte Ltd has the following balances: Work in process inventory -Job 123 -Job 124 Raw materials inventory $13,360 Finished inventory -Job 122 In August, the following occurred: $18,000 $8,620 (i)Raw materials purchased on credit (ii) Raw materials requisitions $23,000 (v) (vi) Job number 123 124 125 Indirect labour -Job number 123 -Job number 124 -Job number 125 -Indirect materials (used in production) (iii)Machine hours, direct labour hours and wages for factory employees (iv)Other overhead incurred: Required: (0) (ii) Depreciation (machineries) Depreciation (delivery vans) Machine hours Labour hours…
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Gibson Manufacturing Co. expects to make 30,800 chairs during the year 1 accounting period. The company made 3,300 chairs in January. Materials and labor costs for January were $17,800 and $24,500, respectively. Gibson produced 1,400 chairs in February. Material and labor costs for February were $9,400 and $12,900, respectively. The company paid the $770,000 annual rental fee on its manufacturing facility on January 1, year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Gibson desires to sell its chairs for cost plus 25 percent of cost, what price should be charged for the chairs produced in January and February? (Round intermediate calculations and final answers to 2 decimal places.)
Logistics Solutions maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours. In the most recent month, 145,000 items were shipped to customers using 5,600 direct labor-hours. The company incurred a total of $17,080 in variable overhead costs. According to the company's standards, 0.04 direct labor-hour is required to fulfill an order for one item and the variable overhead rate is $3.10 per direct labor-hour. Required: 1. What is the standard labor-hours allowed (SH) to ship 145,000 items to customers? 2. What is the standard variable overhead cost allowed (SH x SR) to ship 145,000 items to customers? 3. What is the variable overhead spending variance? 4. What are the variable overhead rate variance and the variable…
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Picture It Inc. manufactures customized wooden frames. The direct materials needed to construct the frames are wood, glass, and cardboard. Picture It has 22 employees who work for 40 hours in a work week and are each paid $17 per hour. The company produced and sold 900 frames in the month of September. During the month of September the following purchases were made to produce the 900 frames: Wood-4000 ft. at $1.20/ft. Glass-400 pieces at $5.60/piece Cardboard-500 pieces at $0.50/piece Required: 1. Calculate the total product cost for the month. Assume that all employees worked for 4 weeks in September and that the company incurred $55,000 as manufacturing overhead costs. 2. Calculate the per-unit cost. Round your answer to two decimal places. 3. Calculate the gross margin for the month of September assuming that the company sells each frame for $250.

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