Sluggo, a slot machine manufacturer, paid and incurred the following expenses duringthe year:Raw materialsMaterials and suppliesFreight-in on raw materials$50,00010,0003,500Freight on shipments of finished slot machines 5,000Direct laborIndirect labor35,00015,00020,000Allocable overhead expenses for productionThe beginning inventory of finished goods was $35,000, and the ending inventory was$20,000.What is the amount of Sluggo's cost of goods sold for the year?a. $133,500b. $148,500c. $150,000d. $168,500

Step 1: Total manufacturing costs Raw materials$50,000Materials and supplies 10,000Freight-in on…

Answered: Sluggo, a slot machine manufacturer,…

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 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Baldwin Printing Company uses a job order cost system and applies overhead based on machine hours. A total of 150,000 machine hours have been budgeted for the year. During the year, an order for 1,000 units was completed and incurred the following: The accountant computed the inventory cost of this order to be 4.30 per unit. The annual budgeted overhead in dollars was: a. 577,500. b. 600,000. c. 645,000. d. 660,000.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.
Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels were made, and 31,000 were sold for 52 each. The actual unit cost is as follows: The selling expenses consisted of a commission of 1.30 per unit sold and advertising copayments totaling 95,000. Administrative expenses, all fixed, equaled 183,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 132,600 for 3,400 easels. Required: 1. Calculate the number and the dollar value of easels in ending finished goods inventory. 2. Prepare a cost of goods sold statement. 3. Prepare an absorption-costing income statement. Add a column for percentage of sales.
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Pink Company incurred the following costs during the month: direct labor, P120,000; factory overhead, P108,000, and direct materials purchases, P160,000 inventories show the following costs: Beginning Ending Finished goods P27,000 P30,000 Work in process P61,500 P57,500 Direct materials P37,500 P 43,500 How much is the cost of goods manufactured?
Johansen company has the following estimated..accounting questions
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The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials$ 16,700Indirect labor147,000Property taxes, factory9, 700Utilities, factory87, 000Depreciation, factory273, 900Insurance, factory 11, 700 Total actual manufacturing overhead costs incurred$ 546, 000Other costs incurred: Purchases of raw materials (both direct and indirect)$ 417,000Direct labor cost$ 77,000Inventories: Raw materials, beginning$ 21, 700Raw materials, ending$ 31, 700 Work in process, beginning$ 41, 700Work in process, ending$ 71, 700 The company uses a predetermined overhead rate of $26 per machine - hour to apply overhead cost to jobs. A total of 21,400 machine - hours were used during the year. Required:1. Compute the amount of underapplied or overapplied overhead cost for the year.2. Prepare a schedule of cost of goods manufactured for the year.
At the beginning of the year, Conway Manufacturing had the following account balances: Work-in-Process Inventory $2,000 Finished Goods Inventory $8,000 Manufacturing Overhead $ 0 Cost of Goods Sold $ 0 Sales Revenue $ 0 The following additional details are provided for the year: Direct materials placed in production $ 80,300 Direct labor incurred $ 1,90,900 Manufacturing overhead incurred $ 3,00,300 Manufacturing overhead allocated to production $ 2,97,200 Cost of jobs completed and transferred $ 5,01,400 The ending balance in the Work-in-Process Inventory account is a: A. debit of $69,000 B. credit of $69,000 C. credit of $2,000 D. debit of $2,000
The following data from the just completed year are taken from the accounting records of KentonCompany: Sales $ 975,000Direct labor cost $ 165,000Raw material purchases $ 229,000Selling expense $ 48,750Administrative expenses $ 146,250Manufacturing overhead applied to work in process $ 180,000Actual manufacturing overhead costs $ 175,050Inventories: Beginning EndingRaw materials $ 18,000 $ 17,500Work in process $ 20,000 $ 14,750Finished goods $ 9,000 $ 11,000 Required: 1.Prepare a schedule of cost of goods manufactured. Assume all raw materials used in productionwere direct materials.2. Prepare a schedule of cost of goods sold. Assume that the company’s underapplied or overappliedoverhead is closed to Cost of Goods Sold 3. Prepare an income statement.
The following cost data relate to the manufacturing activities of Newberry Company during the just completed year: Actual manufacturing overhead costs incurred $558,000 Direct materials Direct labor cost Inventories: Work in process, beginning Work in process, ending $230,000 $145,000 $10,000 $30,000 The company uses a predetermined overhead rate to apply manufacturing overhead costs to production. The predetermined overhead rate for the year was $18 per machine hour. A total of 26,000 machine hours was recorded for the year. Required: a. Compute the amount of underapplied or overapplied overhead cost for the year. b. Prepare a Schedule of the Cost of Goods Manufactured for the year.

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