Cornerstones of Cost Management (Cornerstones Series)

3rd Edition

ISBN: 9781285751788

Author: Don R. Hansen, Maryanne M. Mowen

Publisher: Cengage Learning

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Textbook Question

Chapter 2, Problem 16E

Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels were made, and 31,000 were sold for $52 each. The actual unit cost is as follows:

Chapter 2, Problem 16E, Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels

The selling expenses consisted of a commission of $1.30 per unit sold and advertising copayments totaling $95,000. Administrative expenses, all fixed, equaled $183,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was $132,600 for 3,400 easels.

Required:

1. Calculate the number and the dollar value of easels in ending finished goods inventory.
2. Prepare a cost of goods sold statement.
3. Prepare an absorption-costing income statement. Add a column for percentage of sales.

Expert Solution & Answer

Chapter 2 Solutions

Cornerstones of Cost Management (Cornerstones Series)

Ch. 2 - What is an accounting information system?Ch. 2 - What is the difference between a financial...Ch. 2 - What are the objectives of a cost management...Ch. 2 - Define and explain the two major subsystems of the...Ch. 2 - What is a cost object? Give some examples.Ch. 2 - Prob. 6DQ Ch. 2 - What is a direct cost? An indirect cost?Ch. 2 - Prob. 8DQ Ch. 2 - What is allocation?Ch. 2 - Explain how driver tracing works.

Ch. 2 - What is a tangible product?Ch. 2 - Prob. 12DQ Ch. 2 - Give three examples of product cost definitions....Ch. 2 - Prob. 14DQ Ch. 2 - Prob. 15DQ Ch. 2 - Pietro Frozen Foods, Inc., produces frozen pizzas....Ch. 2 - For next year, Pietro predicts that 50,000 units...Ch. 2 - Pietro expects to produce 50,000 units and sell...Ch. 2 - Refer to Cornerstone Exercises 2.2 and 2.3. Next...Ch. 2 - Jean and Tom Perritz own and manage Happy Home...Ch. 2 - Jean and Tom Perritz own and manage Happy Home...Ch. 2 - Jean and Tom Perritz own and manage Happy Home...Ch. 2 - Jean and Tom Perritz own and manage Happy Home...Ch. 2 - Prob. 9E Ch. 2 - The following items are associated with a cost...Ch. 2 - Nizam Company produces speaker cabinets. Recently,...Ch. 2 - Three possible product cost definitions were...Ch. 2 - Wyandotte Company provided the following...Ch. 2 - For each of the following independent situations,...Ch. 2 - LeMans Company produces specialty papers at its...Ch. 2 - Kildeer Company makes easels for artists. During...Ch. 2 - Anglin Company, a manufacturing firm, has supplied...Ch. 2 - Lakeesha Barnett owns and operates a package...Ch. 2 - Millennium Pharmaceuticals, Inc. (MPI), designs...Ch. 2 - Jazon Manufacturing produces two different models...Ch. 2 - Ellerson Company provided the following...Ch. 2 - Prob. 22E Ch. 2 - Prob. 23E Ch. 2 - Prob. 24E Ch. 2 - Prob. 25E Ch. 2 - Prob. 26E Ch. 2 - Selected information concerning the operations of...Ch. 2 - Brody Company makes industrial cleaning solvents....Ch. 2 - Wright Plastic Products is a small company that...Ch. 2 - The following items are associated with a...Ch. 2 - The actions listed next are associated with either...Ch. 2 - Spencer Company produced 200,000 cases of sports...Ch. 2 - Prob. 33P Ch. 2 - Mason, Durant, and Westbrook (MDW) is a tax...Ch. 2 - Orman Company produces neon-colored covers for...Ch. 2 - High drug costs are often in the news. Consumer...

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Solution Summary: The author calculates the end-to-end finished goods inventory (in units and in cost) and prepares a statement of cost of goods sold.

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Chapter 2 Solutions