InstaChat Company provided the following information regarding its first year of operations: • Administrative salaries and other administrative costs $25,000 Assembly line workers' wages $ 30,000 ● Depreciation on administrative office equipment $ 8,000 • Depreciation on factory production equipment $ 5,000 • Direct materials used $20,000 ● Factory supervisory salaries $ 16,000 Marketing and distribution costs $24,000 • Indirect materials used $3,000 • Sales revenue $ 120,000 • Rent on factory building $ 6,000 • Sales salaries and other selling costs $ 32,000 ● ● Units produced = 20,000 Units sold 15,000

InstaChat Company provided the following information regarding its first year of operations: • Administrative salaries and other administrative costs $25,000 Assembly line workers' wages $ 30,000 ● Depreciation on administrative office equipment $ 8,000 • Depreciation on factory production equipment $ 5,000 • Direct materials used $20,000 ● Factory supervisory salaries $ 16,000 Marketing and distribution costs $24,000 • Indirect materials used $3,000 • Sales revenue $ 120,000 • Rent on factory building $ 6,000 • Sales salaries and other selling costs $ 32,000 ● ● Units produced = 20,000 Units sold 15,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Loring Company incurred the following costs last year: Costs Amounts Direct materials $211,000 Factory rent 21,000 Direct labor 120,000 Factory utilities 6,300 Supervision in the factory 55,000 Indirect labor in the factory 38,000 Depreciation on factory equipment 8,500 Sales commissions 33,000 Sales salaries 72,000 Advertising 35,000 Depreciation on the headquarters building 10,200 Salary of the corporate receptionist 27,000 Other administrative costs 183,000 Salary of the factory receptionist 29,000 What was the total product cost for last year?
A partial listing of costs incurred at Spartech Corporation during July appears below:Direct Materials $100,000 Utilities Factory $12,000 Sales Commissions $10,000 Administrative salaries $120,000 Rent on Factory Space $40,000 Security Services for Factory $30,000 Advertising $120,000 Depreciation of Production Equipment $50,000 Direct Labor $140,000 Depreciation of Administrative Equipment $40,000 Insurance on Factory Equipment $20,000…
The following costs were incurred by ABC Company: Direct labor $ 950,000 Direct material purchases 645,000 Depreciation on plant 55,000 Factory supervisor's salary 98,000 Plant maintenance 26,000 Plant utilities 30,000 Sales 2,555,000 Selling and administrative expenses 480,000 Beginning direct materials inventory 72,000 Beginning work-in-process inventory 54,000 Beginning finished goods inventory 75,000 Ending direct materials inventory 68,000 Ending work-in-process inventory 51,000 Ending finished goods inventory 88,000 Required: Calculate the following values: Direct materials used Cost…
Loring Company incurred the following costs last year: Direct materials $ 216,000 Sales salaries $ 65,000 Advertising Depreciation on the headquarters building Salary of the corporate receptionist Other administrative costs Factory rent 24,000 37,000 Direct labor 120,000 Factory utilities Supervision in the factory Indirect labor in the factory Depreciation on factory equipment 6,300 10,000 50,000 30,000 30,000 175,000 9,000 Salary of the factory receptionist 28,000 Sales commissions 27,000 Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, $216,000.
Schwiesow Corporation has provided the following information: Variable manufacturing overhead Fixed manufacturing overhead $5.10 $1.80 Direct materials Direct labor Sales commissions $1.00 Variable administrative expense $0.40 Fixed selling and administrative expense $ 5,500 If the selling price is $18.70 per unit, the contribution margin per unit sold is closest to: $4.30 $8.15 Cost per Unit Cost per Period $7.05 $ 3.50 $1.65 $ 11,000
Angela Company provided the following information for the current year: Purchases of raw materials 4,600,000 Indirect labor 720,000 Ending raw materials 680,000 Beginning goods in process 1,520,000 Depreciation on headquarters building 420,000 Factory supervisor's salary 1,120,000 Direct labor 3,960,000 Beginning raw materials 800,000 Depreciation on factory building 640,000 Ending goods in process 2,000,000 1. What amount should be reported as gross purchases for the current year?
Angela Company provided the following information for the current year: Purchases of raw materials 4,600,000 Indirect labor 720,000 Ending raw materials 680,000 Beginning goods in process 1,520,000 Depreciation on headquarters building 420,000 Factory supervisor's salary 1,120,000 Direct labor 3,960,000 Beginning raw materials 800,000 Depreciation on factory building 640,000 Ending goods in process 2,000,000 1. What amount should be reported as raw materials available for use for the current year?2. What amount should be reported as gross purchases for the current year?3.
Angela Company provided the following information for the current year: Purchases of raw materials 4,600,000 Indirect labor 720,000 Ending raw materials 680,000 Beginning goods in process 1,520,000 Depreciation on headquarters building 420,000 Factory supervisor's salary 1,120,000 Direct labor 3,960,000 Beginning raw materials 800,000 Depreciation on factory building 640,000 Ending goods in process 2,000,000 1. What amount should be reported as cost of goods manufactured for the current year?
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The following data from the just completed year are taken from the accounting records of Kenton Company: Sales $ 975,000 Direct labor cost $ 165,000 Raw material purchases $ 229,000 Selling expense $ 48,750 Administrative expenses $ 146,250 Manufacturing overhead applied to work in process $ 180,000 Actual manufacturing overhead costs $ 175,050 Inventories: Beginning Ending Raw materials $ 18,000 $ 17,500Work in process $ 20,000 $ 14,750Finished goods $ 9,000 $ 11,000Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare a schedule of cost of goods sold. Assume that the company’s underapplied or overapplied overhead is closed to Cost of Goods Sold. 3. Prepare an income statement.
A partial listing of costs incurred at SueBelle Corporation during October appears below: Direct Materials $195,000 Utilities, Factory $9,000 Sales Commission $75,000 Administrative Salaries $113,000 Indirect Labor $30,000 Advertising $119,000 Depreciation of Production Equipment $28,000 Direct Labor $105,000 Depreciation of Administrative Equipment $44,000 Based on the information provided, answer the following questions: What is the total amount of product cost listed above? What is the total amount of period cost listed above?
Larned Corporation recorded the following transactions for the just completed month. Purchased $73, 000 of raw materials on account. $71,000 in raw materials were used in production. Of this amount, $58,000 was direct materials and the remainder was indirect materials. Paid employees $130,000 cash. Of this amount, $102, 400 was direct labor and the remainder was indirect labor. Depreciation of $191,000 was incurred on factory equipment. Required: Record the above transactions in journal entries. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.