Classifying CostsThe following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc. Evaluate and correct this report.Marching Ants Inc.Manufacturing CostsFor the Quarter Ended June 30Materials used in production (including$53,500 of indirect materials)Direct labor (including $80,200 maintenance salaries)Factory overhead:Supervisor salariesHeat, light, and powerSales salariesPromotional expensesInsurance and property taxes-plantInsurance and property taxes-corporate officesDepreciation-plant and equipmentDepreciation-corporate officesTotalMarching Ants Inc.Manufacturing CostsFor the Quarter Ended June 30Factory overhead:Total manufacturing costs incurred300$$577,400534,600491,800133,700331,500299,400144,300208,500117,60085,500$2,924,300

Costs from material and labor that’s directly or indirectly related to producing an item are called…

Answered: Total manufacturing costs

Business

Accounting

Total manufacturing 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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Classifying Costs
The following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc. Evaluate and correct this report.
Marching Ants Inc.
Manufacturing Costs
For the Quarter Ended June 30
Materials used in production (including
$53,500 of indirect materials)
Direct labor (including $80,200 maintenance salaries)
Factory overhead:
Supervisor salaries
Heat, light, and power
Sales salaries
Promotional expenses
Insurance and property taxes-plant
Insurance and property taxes-corporate offices
Depreciation-plant and equipment
Depreciation-corporate offices
Total
Marching Ants Inc.
Manufacturing Costs
For the Quarter Ended June 30
Factory overhead:
Total manufacturing costs incurred
300
$
$577,400
534,600
491,800
133,700
331,500
299,400
144,300
208,500
117,600
85,500
$2,924,300

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