The following information is for ChiSox corporation DM 100 DL 80 Insurance - Factory 24 Insurance - Administration 12 Maintenance - Factory 40 Depreciation - Factory 36 Indirect Labor 60 Indirect Materials 30 Sales Commission 60 Insurance - Finished Goods Warehouse 12 Travel - Corporate Salaries - Sales 50 Salaries - Production 40 Supervisors Depreciation - Office Advertising 50 Property Taxes - Production facility 20 Rent - Administration Building 24 General Office Expenses 12 Total Expenses 662 What are the total conversion costs?

The following information is for ChiSox corporation DM 100 DL 80 Insurance - Factory 24 Insurance - Administration 12 Maintenance - Factory 40 Depreciation - Factory 36 Indirect Labor 60 Indirect Materials 30 Sales Commission 60 Insurance - Finished Goods Warehouse 12 Travel - Corporate Salaries - Sales 50 Salaries - Production 40 Supervisors Depreciation - Office Advertising 50 Property Taxes - Production facility 20 Rent - Administration Building 24 General Office Expenses 12 Total Expenses 662 What are the total conversion costs?

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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Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Felix & Company reports the following information. Period Units Produced Total Costs 1 0 $ 2,900 2 460 3,774 3 860 4,534 4 1,260 5,294 5 1,660 6,054 6 2,060 6,814 7 2,460 7,574 8 2,860 8,334 9 3,260 9,094 10 3,660 9,854 Exercise 21-6A (Algo) Appendix: Measuring costs using regression LO P1 Use spreadsheet software to use ordinary least-squares regression to estimate the cost equation, including fixed and variable cost amounts. Cost equation = + per unit
Schedule of Activity Costs Quality Control Activities Process audits Training of machine operators Processing returned products Scrap processing (disposal) Rework Preventive maintenance Product design Warranty work Finished goods inspection Activity Cost $50,000 28,000 19,000 25,000 8,000 30,000 46,000 12,000 23,000 From the provided schedule of activity costs, determine the value-added costs. A.$177,000 B.$191,000 C.$156,000 D.$104,000
Classify each Direct or indirect cost a. Cost to lease (rent) railroad cars b. Cost of track and bed (ballast) replacement c. Diesel fuel costs d. Cost to lease (rent) train locomotives e. Depreciation of terminal facilities f. Maintenance costs of right-of-way, bridges, and buildings g. Salaries of dispatching and communications personnel h. Headquarters information technology support staff salaries i. Safety training costs j. Wages of train engineers k. Wages of switch and classification yard personnel I. Costs of accident cleanup
Classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory Indicate whether each period cost is a selling expense or an administrative expense. Costs a. Annual bonus paid to the chief financial officer of the company b. Annual fee to a celebrity to promote the aircraft c. Cost of electronic guidance system installed in the airplane cockpit d. Cost of the flight data recorder (the black box) for the airplane e. Cost of normal scrap from production of the airplane body f. Cost of small replicas of the airplane used to promote and market the airplane g. Cost of paving the headquarters employee parking lot h. Decals for cockpit door, the cost of which is immaterial to the cost of the final product 1. Depreciation on factory equipment j. Hourly wages for janitorial staff for the factory k. Hydraulic pumps used in the airplane's flight control system 1. Instrument panel installed in the…
Which of the following costs at a manufacturing company would be treated as a product cost under variable costing? Multiple Choice direct material cost property taxes on the factory building sales manager's salary sales commissions
Which of the following costs is best classified as a fixed cost with respect to volume of activity? (See your Chapter 20 notes, page 5) Direct labor Electricity used to heat, light, and cool a factory Cleaning supplies used in an automobile assembly plant Straight-line depreciation expense of a machine used in a factory Total cost of salaries paid to quality inspectors in a manufacturing plant Tires used in an automobile manufacturing plant
Poleskiʼs controller would like to have the worksheet display an income statement in a contribution margin format (Sales – variable costs = contribution margin – fixed costs = net income). CVP Cost-Volume-Profit Analysis Data Section Fixed Variable Production costs Direct materials $2.30 Direct labor 4.70 Factory overhead $225,000 3.00 Selling expenses Sales salaries & commissions 97,000 0.75 Advertising 47,500 Miscellaneous selling expense 16,200 General expenses Office salaries 92,000 Supplies 12,300 0.25 Miscellaneous general expense 15,000 $505,000 $11.00 Projected unit sales 120,000 Selling price per unit $16.00 Target net income $250,000 Answer Section Contribution margin per unit $5.00 Contribution margin ratio 31.25% Break-even point in units 101,000 Units needed to…
S [The following information applies to the questions displayed below.] Hosmer Industries provides the following information about resources and usage: Resources used Materials Power Setups Purchasing Client assistance Supervision Facility cost Resources supplied Materials Power Setups Purchasing Client assistance Supervision Facility cost Unused Resources Capacity $ 6,600 3,924 2,160 4,680 18,600 8,520 7,080 $ 352,200 47,988 59,076 62, 280 38,520 74,568 128,040 Required: a. Compute the cost driver rate for each resource. Cost Driver Volume 6,400 pounds 272 hours 62 setups 64 purchase orders 40 inquiries 256 labor-hours 3,360 square meters
For each cost, indicate whether it would most likely be classified as direct materials, direct labor, manufacturing overhead, or selling and administrative. (a) Amortization of patents on factory machine (b) Components used to make product A (Select one) (Select one) (Select one) (c) Direct materials used (d) Factory utilities (e) Property taxes - factory. (f) The cost of a hard-drive installed in a computer for a computer assembling company (g) The wages of employees who assemble computers from components (h) The wages of the company's accountant (i) Wages of the product tester () Wages to assembly line A workers (Select one) (Select one) (Select one) (Select one) (Select one) (Select one) (Select one)
All are examples of a conversion cost EXCEPT: a. All the examples given are conversion costs Ob. The salary of the production manager in a factory. Oc. The rent cost of the factory. С. d. The salary of the electrician who installs the power board inside a tv. e. The carton boxes for packing milk.
Allocation of Administrative Costs Wical Rental Management Services manages four apartment buildings, each with a different owner. Wical’s CEO has observed that the apartment buildingswith more expensive rental rates tend to require more of her time and also the time of her staff. Thefour apartment buildings incur a total annual operating expense of $7,345,733, and these operatingexpenses are traced directly to the apartment buildings for the purpose of determining the profitearned by the building owners. The annual management fee that Wical earns is based on a percentageof total annual operating expenses and is negotiated each year. For the current year, the fee rate is 6%,and Wical has the following information for current-year average rental rates and occupancy rates:[LO 18-3]Apartment Complex Number of Units Average Occupancy Average RentCape Point 100 88.0% $1,895Whispering Woods 250 77.0 1,295Hanging Rock 200 72.0 995College Manor 350 82.0 895Total 900For the current year, Wical…
Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation.