The following information presents financial results for the two models from last year: Private Label Sales revenue Direct material Direct labor Branded $786, 000 $ 552,000 234,000 162,000 172, 200 112, 200 Total $1,338,000 406, 200 274, 200 Manufacturing overhead Department A-101 Department A-102 Total overhead The product costing system at EA allocates manufacturing overhead on the basis of direct labor costs. $ 219,600 273, 960 $493,560 Required: a. Compute the profit or loss for each product using plantwide allocation. b. Compute the profit or loss for each product using department allocation. Note: For all requirements, loss amounts should be indicated by a minus sign. Do not round intermediate calculations.

The following information presents financial results for the two models from last year: Private Label Sales revenue Direct material Direct labor Branded $786, 000 $ 552,000 234,000 162,000 172, 200 112, 200 Total $1,338,000 406, 200 274, 200 Manufacturing overhead Department A-101 Department A-102 Total overhead The product costing system at EA allocates manufacturing overhead on the basis of direct labor costs. $ 219,600 273, 960 $493,560 Required: a. Compute the profit or loss for each product using plantwide allocation. b. Compute the profit or loss for each product using department allocation. Note: For all requirements, loss amounts should be indicated by a minus sign. Do not round intermediate calculations.

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 Flow Relationships The following information is available for the first year of operations of Idgie Inc., a manufacturer of fabricating equipment: Sales $1,261,700 340,700 Gross profit Indirect labor 113,600 Indirect materials 46,700 Other factory overhead 21,400 Materials purchased 643,500 1,392,900 46,700 Total manufacturing costs for the period Materials inventory, end of period Using the above information, determine the following amounts: a. Cost of goods sold b. Direct materials cost c. Direct labor cost
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