Determine the cost of a job and use it for pricing (Learning Objectives 2, 3, & 4) Playtime Industries manufactures custom-designed playground equipment for schools and city parks. Playtime expected to incur $586,600 of manufacturing overhead cost, 41,900 of direct labor hours, and $1,592,200 of direct labor cost during the year (the cost of direct labor is $38 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During May, Playtime completed Job 304. The job used 190 direct labor hours and required $14,800 of direct materials. The City of Jonestown has contracted to purchase the playground equipment at a price of 28% over manufacturing cost . Requirements 1. Calculate the manufacturing cost of Job 304. 2. How much will the City of Jonestown pay for this playground equipment?
Determine the cost of a job and use it for pricing (Learning Objectives 2, 3, & 4) Playtime Industries manufactures custom-designed playground equipment for schools and city parks. Playtime expected to incur $586,600 of manufacturing overhead cost, 41,900 of direct labor hours, and $1,592,200 of direct labor cost during the year (the cost of direct labor is $38 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During May, Playtime completed Job 304. The job used 190 direct labor hours and required $14,800 of direct materials. The City of Jonestown has contracted to purchase the playground equipment at a price of 28% over manufacturing cost . Requirements 1. Calculate the manufacturing cost of Job 304. 2. How much will the City of Jonestown pay for this playground equipment?
Solution Summary: The author explains that manufacturing costs include cost of direct material, direct labor, and the manufacturing overhead.
Determine the cost of a job and use it for pricing(Learning Objectives 2, 3, & 4)
Playtime Industries manufactures custom-designed playground equipment for schools and city parks. Playtime expected to incur $586,600 of manufacturing overhead cost, 41,900 of direct labor hours, and $1,592,200 of direct labor cost during the year (the cost of direct labor is $38 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During May, Playtime completed Job 304. The job used 190 direct labor hours and required $14,800 of direct materials. The City of Jonestown has contracted to purchase the playground equipment at a price of 28% over manufacturing cost.
Requirements
1. Calculate the manufacturing cost of Job 304.
2. How much will the City of Jonestown pay for this playground equipment?
Definition Definition Total cost of procuring or producing a product or the cost that an individual or business owner undertakes for the manufacturing of goods.
Inventory records for Dunbar Incorporated revealed the following:
Date
Transaction
No. of units
Unit cost
Apr. 1
Beginning inventory
440
$ 2.31
Apr. 20 Purchase
430
$ 2.70
Dunbar sold 600 units of inventory during the month Ending inventory
assuming FIFO would be
a. $1,016
b. $1,188
c. $729
d. $624
I need this question answer general accounting question
Chapter 3 Solutions
Managerial Accounting, Student Value Edition (5th Edition)
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