ABC Company recorded the following information related to their inventory accounts for 2020: January 1, 2020 December 31, 2020 Direct materials 50,000 36,000 Work in process 22,000 41,000 Finished goods 38,000 35,000 ABC Company's accounting records for 2020 indicated the following costs had been incurred: Direct materials purchased ................... $124,000 Depreciation, factory equipment .............. 40,000 Direct labor ................................. 97,000 Utilities..................................... 20,000 Sales commissions............................. 56,000 Indirect materials............................ 18,000 Depreciation, office equipment ............... 27,000 Production supervisor's salary ............... 67,000 Advertising................................... 61,000 60% of the utilities relate to the factory while 40% of the utilities relate to the general office building.
Part A) Calculate ABC Company's prime costs for 2020.
Part B) Calculate the total period costs incurred during 2020.
Requirement A
Prime cost= $235,000
Working
Direct Material | |
Beginning raw material Inventory | $ 50,000.00 |
Add: Raw material Purchases | $ 124,000.00 |
Raw material Available for use | $ 174,000.00 |
Less: Ending Raw material Inventory | $ 36,000.00 |
Material Used in Production | $ 138,000.00 |
Add: Direct labor | $ 97,000.00 |
Total Prime cost | 235,000.00 |
Requirement B
Total period cost = $152,000
Working
Sales commission | $ 56,000.00 |
Depreciation-Office equipment | $ 27,000.00 |
Advertisement | $ 61,000.00 |
Utilities-Office building | $ 8,000.00 |
Total period cost | $ 152,000.00 |
All costs other than factory cost are period costs.
ABC Company recorded the following information related to their inventory accounts for 2020: January 1, 2020...
ABC Company recorded the following information related to their inventory accounts for 2019: January 1, 2019 December 31, 2019 Direct materials 50,000 37,000 Work in process 38,000 41,000 Finished goods 22,000 35,000 ABC Company's accounting records for 2019 indicated the following costs had been incurred: Direct materials purchased ................... $124,000 Depreciation, factory equipment .............. 30,000 Direct labor ................................. 97,000 Utilities..................................... 18,000 Sales commissions............................. 65,000 Indirect materials............................ 25,000 Depreciation, office equipment ............... 17,000 Production supervisor's salary ............... 76,000 Advertising................................... 61,000 60%...
XYZ Company recorded the following information related to their inventory accounts for 2020: January 1, 2020 December 31, 2020 Direct materials 37,000 50,000 Work in process 38,000 41,000 Finished goods 22,000 34,000 The following information was taken from XYZ Company's accounting records for 2020: Sales revenue ........................................... $630,000 Direct materials purchased .............................. ? Depreciation, factory equipment ......................... 34,000 Prime costs ............................................. 250,000 Utilities (60% for factory; 40% for office building) .... 20,000 Sales commissions ....................................... 29,000 Indirect materials ...................................... 25,000...
XYZ Company recorded the following information related to their inventory accounts for 2020: January 1, 2020 December 31, 2020 Direct materials 37,000 50,000 Work in process 38,000 41,000 Finished goods 22,000 34,000 The following information was taken from XYZ Company's accounting records for 2020: Sales revenue ........................................... $630,000 Direct materials purchased .............................. ? Depreciation, factory equipment ......................... 34,000 Prime costs ............................................. 250,000 Utilities (60% for factory; 40% for office building) .... 20,000 Sales commissions ....................................... 29,000 Indirect materials ...................................... 25,000...
XYZ Company recorded the following information related to their inventory accounts for 2020: January 1, 2020 December 31, 2020 Direct materials 37,000 50,000 Work in process 38,000 41,000 Finished goods 22,000 34,000 The following information was taken from XYZ Company's accounting records for 2020: Sales revenue ........................................... $630,000 Direct materials purchased .............................. ? Depreciation, factory equipment ......................... 34,000 Prime costs ............................................. 250,000 Utilities (60% for factory; 40% for office building) .... 20,000 Sales commissions ....................................... 29,000 Indirect materials ...................................... 25,000...
XYZ Company recorded the following information related to their invento гу accounts for 2020: Direct materials Work in process Finished goods January 1, 2020 37,000 38,000 22,000 December 31, 2020 50,000 41,000 34,000 The following information was taken from XYZ Company's accounting recor for 2020: $630,000 Sales revenue Direct materials purchased .... Depreciation, factory equipment ...... Prime costs ....... Utilities (60% for factory; 40% for office building) Sales commissions Indirect materials ....... Depreciation, office equipment Rent, factory building Direct Labor...
XYZ Company recorded the following information related to their inventory accounts for 2020: January 1, 2020 December 31, 2020 Direct materials 50,000 37,000 Work in process 38,000 41,000 Finished goods 32,000 34,000 The following costs were taken from XYZ Company's accounting records for 2020: Direct materials purchased .............................. $129,000 Depreciation, factory equipment ......................... 37,000 Sales revenue ........................................... 590,000 Utilities (60% for factory; 40% for office building) .... 30,000 Sales commissions ....................................... ? Indirect materials ...................................... 29,000 Depreciation, office equipment .............................
XYZ Company recorded the following information related to their inventory accounts for 2020: January 1, 2020 December 31, 2020 Direct materials 50,000 37,000 Work in process 38,000 41,000 Finished goods 32,000 34,000 The following costs were taken from XYZ Company's accounting records for 2020: Direct materials purchased .............................. $129,000 Depreciation, factory equipment ......................... 37,000 Sales revenue ........................................... 590,000 Utilities (60% for factory; 40% for office building) .... 30,000 Sales commissions ....................................... ? Indirect materials ...................................... 29,000 Depreciation, office equipment .............................
XYZ Company recorded the following information related to their inventory accounts for 2020: January 1, 2020 December 31, 2020 Direct materials 50,000 37,000 Work in process 38,000 41,000 Finished goods 32,000 34,000 The following costs were taken from XYZ Company's accounting records for 2020: Direct materials purchased .............................. $129,000 Depreciation, factory equipment ......................... 37,000 Sales revenue ........................................... 590,000 Utilities (60% for factory; 40% for office building) .... 30,000 Sales commissions ....................................... ? Indirect materials ...................................... 29,000 Depreciation, office equipment .............................
XYZ Company recorded the following information related to their inventory accounts for 2020: January 1, 2020 December 31, 2020 Direct materials 50,000 37,000 Work in process 38,000 41,000 Finished goods 32,000 34,000 The following costs were taken from XYZ Company's accounting records for 2020: Direct materials purchased .............................. $129,000 Depreciation, factory equipment ......................... 37,000 Sales revenue ........................................... 590,000 Utilities (60% for factory; 40% for office building) .... 30,000 Sales commissions ....................................... ? Indirect materials ...................................... 29,000 Depreciation, office equipment .............................
XYZ Company recorded the following information related to their inventory accounts for 2020: January 1, 2020 December 31, 2020 Direct materials 50,000 37,000 Work in process 38,000 41,000 Finished goods 32,000 34,000 The following costs were taken from XYZ Company's accounting records for 2020: Direct materials purchased .............................. $129,000 Depreciation, factory equipment ......................... 37,000 Sales revenue ........................................... 590,000 Utilities (60% for factory; 40% for office building) .... 30,000 Sales commissions ....................................... ? Indirect materials ...................................... 29,000 Depreciation, office equipment .............................