Question

1. Langson is a manufacturing company. The following costs are found in its General Ledger Accounts for the month of August, 2019:

1. Materials used                                                        $150,000
2. Direct labor                                                               $620,000
3. Indirect Labor                                                          $120,000
4. Additional Factory Overhead is  2 times the materials use rate.
5.   Administrative salaries                                      $130,000            
6. Sales Salaries                                                                $60,000
7. There were 1,000 units in production.   

Required:

1. Total Cost of Goods in Production:  Show computation

2. What is the Unit cost of production? Show computation.

5.

c.    What is the total Period Cost for Langson Manufacturing Company? Show computation.

D.    How much is the Total Factory Overhead for Langson Manufacturing Company                               

Answer 1

$150,000 $620,000 a) Total cost of goods in production Direct material Direct labor Manufacturing overhead Indirect labor Additional factory overhead Total cost of goods in production $120,000 $300,000 2 times material cost $1,190,000 Answer b) Unit cost of production Total cost of goods in production Total units Unit cost of production $1,190,000 a 1,000 b $1,190 Answer a/b c) Total period cost Administrative salaries Selling expenses Total period cost $130,000 $60,000 $190,000 Answer d) Total Factory overheads Indirect labor Additional factory overhead Total Factory overheads $120,000 $300,000 $420,000 Answer