Meman Skysong Motor Company manufactures automobiles. During September 2022, the company purchased 4,000 head lamps at a cost of$10 per lamp. 30 of these lamps were used to replace the head lamps in autos used by traveling sales staff, and 3,690 lamps were put inautos manufactured during the month.Of the autos put into production during September 2022, 80% were completed and transferred to the company's storage lot. Of thecars completed during the month, 70% were sold by September 30.(a)Determine the cost of head lamps that would appear in each of the following accounts at September 30, 2022.Raw MaterialsWork in ProcessFinished GoodsCost of Goods SoldSelling Expenses$$LA$+Ata

Raw material Ending Quantity = Raw material Purchased Quantity - Raw material Used Quantity Raw…

Answered: Skysong Motor Company manufactures…

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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SAP Company manufactures boats. During October, 2020, the company purchased 200 motors at a cost of P300 each. Tarkus transferred 140 motors from the warehouse to production during the month which were installed in boats manufactured during the same period. Of the boats put into production during October, 2020, 90% were completed and transferred to the company's storage lot. By October 31, a total of 100 boats completed during the month were sold. Instructions Determine the cost of motors that would appear in each of the following accounts at October 31, 2020: Raw materials inventory Work in process inventory Finished goods inventory Cost of goods sold
Teal Mountain Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets, Teal Mountain decided to turn its retail store into an audio equipment factory. Production began October 1, 2022. Direct materials costs for an audio system total $77 per unit. Workers on the production lines are paid $13 per hour. An audio system takes 6 labor hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,070 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is $3,700. Factory janitorial costs are $2,030 monthly. Advertising costs for the audio system will be $9,030 per month. The factory building depreciation is $6,360 per year. Property taxes on the factory building will be $8,520 per year. Assuming that Teal Mountain manufactures, on average, 1,400 audio systems per month, enter each cost item on your answer sheet, placing…
Splish Brothers Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets Spish Brothers decided to turn its retail store into an audio equipment factory Production began October 1.2025. Direct materials costs for an audio system total $75 per unit Workers on the production lines are paid $15 per hour An audio system takes 7 labor hours to complets. In addition, the rent on the equipment used to assemble audio systems amounts to $5,960 per month Indirect materials cost $7 per system. A supervisor was hired to oversee production her monthly salary is $2.060 Factory janitorial costs are $2.310 monthly Advertising costs for the audio system will be $9.330 per month. The factory building depreciation is $7,080 per year. Property taxes on the factory building will be $8.400 per year (a) Assuming that Splish Brothers manufactures, on average 1.500 audio systems per month enter each cost item on your answer sheet placing the…
Ibri Company, a manufacturer of stereo systems, started its production in January 2018. For the preceding 3 years had been a retailer of stereo systems. After a thorough survey of stereo system markets, Ibri Company decided to turn its retail store into a stereo equipment factory. Raw materials cost for a stereo system will total $77 per unit. Workers on the production lines are on average paid $11 per hour. A stereo system usually takes 4 hours to complete. In addition, the rent on the equipment used to assemble stereo systems amounts to $5,200 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is $3,000. Factory janitorial costs are $1,000 monthly. Advertising costs for the stereo system will be $5,000 per month. The factory building depreciation expense is $8,400 per year. Property taxes on the factory building will be $12,000 per year. Instructions Prepare an answer sheet with the following column headings. Cost…
Edmund Supplies Company sold 3,170 metal connectors on account to Door Incorporated for $200 each on September 15. Each metal connector costs Edmund $150 to make. Door has 60 days to return the unused goods. Edmund believes that Door will ultimately return 75 of the connectors. On September 29, Door returns 50 connectors. Edmund has a September 30 fiscal year end. At year end, Edmund believes 75 connectors is a good estimate of the total that will be returned. The cost of recovering these products is immaterial. Edmund expects to be able to resell these goods for a profit. Instructions Prepare the following journal entries on the books of Edmund Company: Entries to record the initial sales on September 15. Entries to record the return of goods September 29. Entries to record the year-end adjustment based on estimated returns on September 30.
Skysong Paper Products purchased 10,600 acres of forested timberland in March 2020. The company paid $1,802 per acre for this land, which was above the $848 per acre most farmers were paying for cleared land. During April, May, June, and July 2020, Skysong cut enough timber to build roads using moveable equipment purchased on April 1, 2020. The cost of the roads was $265,100, and the cost of the equipment was $238,500; this equipment was expected to have a $9,540 salvage value and would be used for the next 15 years. Skysong selected the straight-line method of depreciation for the moveable equipment. Skysong began actively harvesting timber in August and by December had harvested and sold 572,400 board feet of timber of the estimated 7,155,000 board feet available for cutting.In March 2021, Skysong planted new seedlings in the area harvested during the winter. Cost of planting these seedlings was $127,200. In addition, Skysong spent $8,480 in road maintenance and $6,360 for pest…
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Rubble, Inc. produced 1,000 backpacks, the company's product in 2020. The standard cost was 3 yards of cloth at a standard cost of $1.00 per yard. The accounting records show that 2,900 yards of cloth were used, and the company paid $1.05 per yard. Standard time to make the backpacks was 2 direct labor hours per unit at a standard rate of $9.75 per direct labor hours. Employees worked a total of 1,800 hours and were paid $9.25 per hour.1. Calculate the direct materials cost variance and the direct materials efficiency variance.

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