Yamishi Production had the following inventories for the first quarter of 2022: Materials Work in process Finished goods Beginning $606,600 312,100 416,100 Ending $522,100 280,800 540,200 Purchases of materials during the quarter were $427,800. Total direct labor costs were incurred in the amount of $1,482,000. Actual overhead costs were incurred as follows: operating supplies used, $17,100; janitorial and maintenance, $87,300; employee benefits, $26,400; utilities, $162,000; depreciation of factory, $43,200; property taxes, $24,000; factory insurance, $29,000. Net sales for the quarter were $3,562,200. Selling and administrative expenses were $508,000. Income taxes should be computed at 40 percent. Calculate cost of goods manufactured.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Yamishi Production had the following inventories for the first quarter of 2022:
Materials
Work in process Finished goods
Beginning
$606,600 312,100 416,100
Ending
$522,100 280,800 540,200
Purchases of materials during the quarter were $427,800. Total direct labor costs were incurred in the amount of $1,482,000. Actual
Calculate cost of goods manufactured.
6. Company produces small boats. Each boat uses 2 sheets of direct materials at $3 a sheet, it takes 2 hours to finish one boat and hourly rate is $5, factory utilities and supervision cost $6 per boat and variable cost amounts to $2 per direct labor hour. If the mark-up required for each product is 40%, what should be the selling price? Show your workings and explain your answer in a few words.
Which of the following statements is true regarding fixed and variable costs? Choose the correct answer and explain your answer in a few words.
Both costs are constant when considered on a total basis.
Variable costs are constant in total, and fixed costs are constant per unit.
Both costs are constant when considered on a per unit basis.
Fixed costs are constant in total, and variable costs are constant per unit.
Which of the following costs could be a variable
a. Insurance premiums b. Factory rent
c. President's salary
d. Depreciation costs
In terms of cost behavior, supervisory salaries and direct labor are classified as (Choose the correct answer and explain your answer in a few words.)
fixed and variable, respectively.
both variable.
both fixed.
mixed and fixed, respectively.
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10. Tigor Enterprises has sales revenue of $340,000 for 2022. Its product sells for $12 and has a 20 percent contribution margin. Fixed costs are $21,000. What is Tigor Enterprises' operating income for 2022? Show your workings.
11. Given the following cost and activity observations for Leno Enterprises' utilities, use the method taught in the lecture to decompose the relevant costs into their variable and fixed components. State the method clearly, explain your reasoning, make assumptions where necessary and show your workings.
September October November December
Cost
$4,100 3,700 3,900 4,500
Machine Hours
22,000 18,000 19,000 28,000.
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