XYZ Company recorded the following information related to their inventory accounts for 2020: Direct materials Work in process Finished goods The following information was taken from XYZ Company's accounting records for 2020: Sales revenue Direct materials purchased Depreciation, factory equipment Prime costs...... Utilities January 1, 2020 37,000 38,000 22,000 ... Sales commissions Indirect materials December 31, 2020 50,000 41,000 34,000 Depreciation, office equipment Rent, factory building Net income Direct labor $630,000 ? 34,000 250,000 20,000 ? 25,000 30,000 56,000 10,000 ? Advertising Production supervisor's salary Additional information: 1. 60% of the utilities relate to the factory and 40% relate to the office building 75,000 81,000 2. Direct labor comprised 35% of the conversion costs for 2020. 3. The actual overhead cost for 2020 was equal to the overhead applied to production. Thus there was no overhead variance for 2020. Q1.Calculate XYZ Company's direct labor cost for 2020. 22.Calculate the direct materials purchased by XYZ Company in 2020. 23.Calculate XYZ Company's sales commissions for 2020.
XYZ Company recorded the following information related to their inventory accounts for 2020: Direct materials Work in process Finished goods The following information was taken from XYZ Company's accounting records for 2020: Sales revenue Direct materials purchased Depreciation, factory equipment Prime costs...... Utilities January 1, 2020 37,000 38,000 22,000 ... Sales commissions Indirect materials December 31, 2020 50,000 41,000 34,000 Depreciation, office equipment Rent, factory building Net income Direct labor $630,000 ? 34,000 250,000 20,000 ? 25,000 30,000 56,000 10,000 ? Advertising Production supervisor's salary Additional information: 1. 60% of the utilities relate to the factory and 40% relate to the office building 75,000 81,000 2. Direct labor comprised 35% of the conversion costs for 2020. 3. The actual overhead cost for 2020 was equal to the overhead applied to production. Thus there was no overhead variance for 2020. Q1.Calculate XYZ Company's direct labor cost for 2020. 22.Calculate the direct materials purchased by XYZ Company in 2020. 23.Calculate XYZ Company's sales commissions for 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:XYZ Company recorded the following information related
to their inventory accounts for 2020:
Direct materials
Work in process
Finished goods
January 1, 2020
37,000
38,000
22,000
The following information was taken from XYZ Company's
accounting records for 2020:
Sales revenue
Direct materials purchased
Depreciation, factory equipment
Prime costs
Utilities ...
Sales commissions
Indirect materials
December 31, 2020
50,000
41,000
34,000
Depreciation, office equipment
Rent, factory building
Net income
Direct labor
$630,000
?
34,000
250,000
20,000
?
25,000
30,000
56,000
10,000
?
75,000
81,000
Advertising
Production supervisor's salary
Additional information:
1. 60% of the utilities relate to the factory and 40%
relate to the office building
2. Direct labor comprised 35% of the conversion costs
for 2020.
3. The actual overhead cost for 2020 was equal to the
overhead applied to production. Thus there was no
overhead variance for 2020.
Q1.Calculate XYZ Company's direct labor cost for 2020.
Q2.Calculate the direct materials purchased by XYZ Company
in 2020.
Q3.Calculate XYZ Company's sales commissions for 2020.
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