Direct Material cost: Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle. Direct Labor Cost: Direct labor cost is the cost of the labor paid to the employees who are directly involved in converting the raw materials to the finished products. It constitutes the major portion of the total cost of the finished product. For example: Wages paid to the mechanic for repairing an automobile. Factory Overhead Cost: Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment. To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Question

E-trax, Inc. has provided the following financial information for the year: Finished Goods Inventory: Units produced Beginning balance, in units 640 2,800 2,900 540 Units sold Ending balance, in units Production costs: Variable manufacturing costs per unit $65 Total fixed manufacturing costs $56,000 What is the unit product cost for the year using absorption costing?

Answer 1

Question

Chapter 16, Problem 16.2BPE

a.

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

Direct Labor Cost:

Direct labor cost is the cost of the labor paid to the employees who are directly involved in converting the raw materials to the finished products. It constitutes the major portion of the total cost of the finished product. For example: Wages paid to the mechanic for repairing an automobile.

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

b.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

c.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

d.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

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E-trax, Inc. has provided the following financial information for the year: Finished Goods Inventory: Units produced Beginning balance, in units 640 2,800 2,900 540 Units sold Ending balance, in units Production costs: Variable manufacturing costs per unit $65 Total fixed manufacturing costs $56,000 What is the unit product cost for the year using absorption costing?

What is the amount of allocated manufacturing overhead cost for August? Accounting

None

Answer 2

Question

Chapter 16, Problem 16.2BPE

a.

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

Direct Labor Cost:

Direct labor cost is the cost of the labor paid to the employees who are directly involved in converting the raw materials to the finished products. It constitutes the major portion of the total cost of the finished product. For example: Wages paid to the mechanic for repairing an automobile.

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

b.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

c.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

d.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

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Answer 3

Question

Chapter 16, Problem 16.2BPE

a.

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

Direct Labor Cost:

Direct labor cost is the cost of the labor paid to the employees who are directly involved in converting the raw materials to the finished products. It constitutes the major portion of the total cost of the finished product. For example: Wages paid to the mechanic for repairing an automobile.

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

b.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

c.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

d.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

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Answer 4

Question

Chapter 16, Problem 16.2BPE

a.

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

Direct Labor Cost:

Direct labor cost is the cost of the labor paid to the employees who are directly involved in converting the raw materials to the finished products. It constitutes the major portion of the total cost of the finished product. For example: Wages paid to the mechanic for repairing an automobile.

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

b.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

c.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

d.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

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Answer 5

Chapter 16, Problem 16.2BPE

a.

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

Direct Labor Cost:

Direct labor cost is the cost of the labor paid to the employees who are directly involved in converting the raw materials to the finished products. It constitutes the major portion of the total cost of the finished product. For example: Wages paid to the mechanic for repairing an automobile.

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

b.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

c.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

d.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 6

Chapter 16, Problem 16.2BPE

a.

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

Direct Labor Cost:

Direct labor cost is the cost of the labor paid to the employees who are directly involved in converting the raw materials to the finished products. It constitutes the major portion of the total cost of the finished product. For example: Wages paid to the mechanic for repairing an automobile.

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 7

Chapter 16, Problem 16.2BPE

a.

To determine

Direct Material cost:

Direct material cost is the cost of the material which is directly involved in the production. It constitutes the major portion of the total cost of the finished product. For example: The cost of plastic is the direct material for manufacturing a bottle.

Direct Labor Cost:

Direct labor cost is the cost of the labor paid to the employees who are directly involved in converting the raw materials to the finished products. It constitutes the major portion of the total cost of the finished product. For example: Wages paid to the mechanic for repairing an automobile.

Factory Overhead Cost:

Factory overhead cost is the cost other than the direct material cost, and the direct labor cost which is not directly involved in the production process of converting the raw materials to the finished products. If the direct material cost or direct labor cost does not constitute the major portion of the total cost of the finished product, then it may be classified as the factory overhead cost. For example: Cost of repairing, and maintaining factory equipment.

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 8

b.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 9

b.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 10

c.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 11

c.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 12

d.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 13

d.

To determine

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Answer 14

Expert Solution & Answer

Answer 15

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Answer 25

Ch. 16 - What are the major differentes between managerial...Ch. 16 - A. Differentiate between a department with line...Ch. 16 - What manufacturing cost term is used to describe...Ch. 16 - Prob. 4DQ Ch. 16 - What is the difference between a product cost and...Ch. 16 - Name the three inventory accounts for a...Ch. 16 - In What order should the three inventories of a...Ch. 16 - Prob. 8DQ Ch. 16 - For a manufacturer, what is the description of the...Ch. 16 - How does the Cost of Goods Sold section of the...

Solution Summary: The author explains that the cost of the staples used to bind magazines is direct material (DM) or Factory overheads cost (FO).

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

To identify: The given costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

Chapter 16 Solutions