The following is production related data for PT AAA for March 2024, you are asked to create a Cost of Goods Sold and Income Statement. Direct materials, March 1, 2024 $ 14,000 Property tax-factory 12,000 Work in process, March 1, 2024 20,000 Rent expense-selling and administrative 28,000 Finished goods, March 1, 2024 45,000 Material handling cost 12,500 Purchased of direct materials 275,000 Overtime-factory labor 9,000 Discount on purchased of direct materials 11,000 Depreciation expense-factory building 18,000 Purchased Return & Allowances on direct materials 7,500 Selling and administrative salaries 40,000 Freight in 10,000 Directors' salaries 65,000 Direct labor cost 225,000 Depreciation expense-factory equipment 36,000 Indirect labor cost 25,000 Depreciation expense-selling and administrative 15,000 Production's supervisor salary 30,000 Sales 1,250,000 Utility cost-factory 18,500 Net sales and allowances 22,000 Utility cost-selling and administrative 21,000 Delivery expense 17,500 Advertising expense 15,000 Direct materials, March 31, 2024 18,000 Indirect materials used 25,000 Work in process, March 31, 2024 28,000 Insurance expense-factory 24,000 Finished goods, March 31, 2024 38,000 Insurance expense-selling and administrative 8,000 NUMBER 2 PT AAA is a company engaged in the manufacture of shoes. During 2024, there was a high increase in electricity costs. To save costs, management wants to know whether the factory's electricity costs are affected by the length of hours the shoe-making machine is produced. The data collected by management during 2024 is ELECTRICITY MONTH MACHINE CLOCK COST January $ 480 2,100 February $ 450 1,800 March $ 435 1,900 April $ 485 2,200 May $ 470 2,100 June $ 475 2,000 July $ 400 1,200 August $ 450 1,900 September $ 435 1,800 October $ 600 3,000 November $ 495 2,300 December $ 470 2,200 REQUESTED: 1. Determine the electricity cost function, if the company uses the high low method! 2. Determine the total electricity cost if in January 2025 there is an Activity Level of 2,000 Machine Hours!

The following is production related data for PT AAA for March 2024, you are asked to create a Cost of Goods Sold and Income Statement. Direct materials, March 1, 2024 $ 14,000 Property tax-factory 12,000 Work in process, March 1, 2024 20,000 Rent expense-selling and administrative 28,000 Finished goods, March 1, 2024 45,000 Material handling cost 12,500 Purchased of direct materials 275,000 Overtime-factory labor 9,000 Discount on purchased of direct materials 11,000 Depreciation expense-factory building 18,000 Purchased Return & Allowances on direct materials 7,500 Selling and administrative salaries 40,000 Freight in 10,000 Directors' salaries 65,000 Direct labor cost 225,000 Depreciation expense-factory equipment 36,000 Indirect labor cost 25,000 Depreciation expense-selling and administrative 15,000 Production's supervisor salary 30,000 Sales 1,250,000 Utility cost-factory 18,500 Net sales and allowances 22,000 Utility cost-selling and administrative 21,000 Delivery expense 17,500 Advertising expense 15,000 Direct materials, March 31, 2024 18,000 Indirect materials used 25,000 Work in process, March 31, 2024 28,000 Insurance expense-factory 24,000 Finished goods, March 31, 2024 38,000 Insurance expense-selling and administrative 8,000 NUMBER 2 PT AAA is a company engaged in the manufacture of shoes. During 2024, there was a high increase in electricity costs. To save costs, management wants to know whether the factory's electricity costs are affected by the length of hours the shoe-making machine is produced. The data collected by management during 2024 is ELECTRICITY MONTH MACHINE CLOCK COST January $ 480 2,100 February $ 450 1,800 March $ 435 1,900 April $ 485 2,200 May $ 470 2,100 June $ 475 2,000 July $ 400 1,200 August $ 450 1,900 September $ 435 1,800 October $ 600 3,000 November $ 495 2,300 December $ 470 2,200 REQUESTED: 1. Determine the electricity cost function, if the company uses the high low method! 2. Determine the total electricity cost if in January 2025 there is an Activity Level of 2,000 Machine Hours!

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 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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