The following is a manufacturing cost report of Marching Ants Inc. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Costs Type Amount Materials used in production (including $60,500 of indirect materials) $653,300 Direct labor (including $90,700 maintenance salaries) 604,900 Factory overhead: Supervisor salaries—plant 556,500 Heat, light, and power—plant 151,200 Sales salaries 375,000 Promotional expenses 338,700 Insurance and property taxes—plant 163,300 Insurance and property taxes—corporate offices 235,900 Depreciation—plant and equipment 133,100 Depreciation—corporate offices 96,800 Total $3,308,700 Question Content Area a. 1. Select the correct sentence for errors in the preceding report. 1. The maintenance salaries of $90,700 and indirect materials of $60,500 should be included as factory overhead. 2. The indirect materials of $60,500 should be included as factory overhead. 3. The maintenance salaries of $90,700 should be included as factory overhead. 4. Half of the maintenance salaries of $90,700 and indirect materials of $60,500 should be included as factory overhead. a. 2. Select the correct sentence for errors in the preceding report. 1. Sales salaries, promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead. 2. Promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead. 3. Sales salaries, promotional expenses, corporate office insurance and property taxes should not be included in factory overhead. 4. Half of sales salaries, promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead. Question Content Area b. Prepare a corrected report. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Costs Type Amount Amount $- Select - - Select - Factory overhead: $- Select - - Select - - Select - - Select - - Select - - Select - Total factory overhead Total factory overhead Total $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following is a manufacturing cost report of Marching Ants Inc. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Costs Type Amount Materials used in production (including $60,500 of indirect materials) $653,300 Direct labor (including $90,700 maintenance salaries) 604,900 Factory overhead: Supervisor salaries—plant 556,500 Heat, light, and power—plant 151,200 Sales salaries 375,000 Promotional expenses 338,700 Insurance and property taxes—plant 163,300 Insurance and property taxes—corporate offices 235,900 Depreciation—plant and equipment 133,100 Depreciation—corporate offices 96,800 Total $3,308,700 Question Content Area a. 1. Select the correct sentence for errors in the preceding report. 1. The maintenance salaries of $90,700 and indirect materials of $60,500 should be included as factory overhead. 2. The indirect materials of $60,500 should be included as factory overhead. 3. The maintenance salaries of $90,700 should be included as factory overhead. 4. Half of the maintenance salaries of $90,700 and indirect materials of $60,500 should be included as factory overhead. a. 2. Select the correct sentence for errors in the preceding report. 1. Sales salaries, promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead. 2. Promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead. 3. Sales salaries, promotional expenses, corporate office insurance and property taxes should not be included in factory overhead. 4. Half of sales salaries, promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead. Question Content Area b. Prepare a corrected report. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Costs Type Amount Amount $- Select - - Select - Factory overhead: $- Select - - Select - - Select - - Select - - Select - - Select - Total factory overhead Total factory overhead Total $
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Step 1

The formula for Total manufacturing costs is:

Total manufacturing costs=Direct materials used in production+Direct labor+Total factory overhead

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