Homework Answers
overhead costs of manufacturing :
indirect material + indirect labour + other factory overheads ( utilities , insurance , depreciation )
10000 + 35000 + 14000 + 15000 + 20000
= $94000
Product costs :
Direct material + Direct labour + Overhead cost of manufacturing
145000 + 100000 + 94000
= $339000
period costs :
marketing and selling expenses + administrative expenses + interest expenses
40000+35000
= $75000
Prime costs :
Raw material cost (direct material ) + direct labour costs
145000+100000
= $245000
Conversion costs :
Direct labour + overhead costs of manufacturing
100000 + 94000
= $194000
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Exercise A: Product Costs, Period Costs, Prime Costs and Conversion Costs The following costs were taken...
ACCT 21 - Chapter 2: Assignment Exercise A: Product Costs, Period Costs, Prime Costs and Conversion...
ACCT 21 - Chapter 2: Assignment Exercise A: Product Costs, Period Costs, Prime Costs and Conversion Costs The following costs were taken from the Kelly's Company. You are being asked to calculate the product costs, period costs, prime costs, and conversion costs. Cost incurred: Selling expenses $40,000 Direct labor $100,000 Factory insurance $15,000 Factory depreciation $20,000 Indirect labor $35,000 Direct material $145,000 Administrative expenses $35,000 Factory utilities 14,000 Indirect material $10,000
Explain why product costs are capitalized but period costs are expensed in the current accounting period....
Explain why product costs are capitalized but period costs are expensed in the current accounting period. Explain how business activities and inventories for a manufacturing company, a merchandising company, and a service company differ. Distinguish between direct labor and indirect labor. Distinguish between (a) factory overhead and (b) selling and administrative overhead. Distinguish between direct material and indirect material. What product cost is both a prime cost and a conversion cost?
18) The following costs & inventory data were taken from the accounts of Gee Company for...
18) The following costs & inventory data were taken from the accounts of Gee Company for 2017: January 1, 2017 December 31, 2017 Inventories: Raw materials Work in process Finished goods $ 9,000 16,000 15,000 $ 6,000 14,000 10,000 Costs incurred during 2017: Raw materials purchases Direct labor Factory rent Factory utilities Indirect materials Indirect labor Selling & administrative expenses $87,000 40,000 8,400 10,100 4,300 8,700 16,000 Instructions a. Prepare a schedule showing the amount of direct materials used in...
Pinnacle Manufacturing manufactures custom wheel covers. Identify each of the preceding costs as either a prime...
Pinnacle Manufacturing manufactures custom wheel covers. Identify each of the preceding costs as either a prime cost period cost or conversion cost. If the cost is a prime cost, decide whether it is for direct materials (DM), direct labor (DL), or manufacturing overhead (MOH). (Select "Both Prime and Conversion Costs" if both of the categories apply for a particular item.) Product Costs Prime/Conversion/Period cost MOH DM MOH MOH Period Cost Conversion Cost Prime Cost Conversion Cost Conversion Cost Administrative Salaries...
Woodcarving Co. incurred the following costs during May: Conversion costs $ 460,000 Prime costs $ 390,000...
Woodcarving Co. incurred the following costs during May: Conversion costs $ 460,000 Prime costs $ 390,000 Manufacturing overhead $ 315,000 What was the amount of direct materials and direct labor used in May? Direct materials Direct labor A. $ 100,000 $ 295,000 B. $ 105,000 $ 215,000 C. $ 245,000 $ 145,000 D. $ 70,000 $ 75,000
I continue to get $309,000 for period costs but that isn't correct. the only cost i...
I
continue to get $309,000 for period costs but that isn't correct.
the only cost i know that us right is the total prime cost.
The following cost data for the year just ended pertain to Sentiments, Inc., a greeting card manufacturer: Direct material Advertising expense Depreciation on factory building Direct labor: wages Cost of finished goods inventory at year-end Indirect labor! wages Production supervisor's salary Service department costs Direct labor: fringe benefits Indirect labor: fringe benefits Fringe benefits for...
Required Information [The following information applies to the questions displayed below) You have been asked by...
Required Information [The following information applies to the questions displayed below) You have been asked by the CEO of Mountaineer Co to assist in analyzing product costs. This analysis is used in Internal decision making and in reporting to investors. The following Tableau Dashboard provides data needed for the analysis Raw Materials Inventories Raw materials, beginning Raw materials purchases Raw materials used Raw materials, ending $0 $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 Work in Process & Finished Goods...
I. Felder Co. incurred the following costs for June 2018: Beginning direct materials inventory $27,000 Beginning...
I. Felder Co. incurred the following costs for June 2018: Beginning direct materials inventory $27,000 Beginning finished goods inventory 26,000 Beginning work in process inventory 8,000 Depreciation on factory building 22,000 Direct labor 211,000 Direct material purchases 193,000 Ending direct materials inventory 16,000 Ending finished goods 35,000 Ending work in process 15,000 Factory supervisor's salary 46,000 Repairs of factory building 7,000 Sales 750,000 Selling and administrative expenses 130,000 Utilities in factory 14,000 Assume an income tax rate of 40 percent....
Exercise 14-6 Cost classification LO C3 Georgia Pacific, a manufacturer, incurs the following costs. (1) Classify...
Exercise 14-6 Cost classification LO C3 Georgia Pacific, a manufacturer, incurs the following costs. (1) Classify each cost as either a product or a period cost. If a product cost, identify it as direct materials, direct labor, or factory overhead, and then as a prime and/or conversion cost. (2) Classify each product cost as either a direct cost or an indirect cost using the product as the cost object. Cost by Traceability Period or Product Direct material, Direct labor, or...
The following costs were incurred by Greetings R Us, a firm manufacturing greetings cards for the...
The following costs were incurred by Greetings R Us, a firm manufacturing greetings cards for the last year: Service Department costs (All of the services are provided to manufacturing function) Fringe benefits to Direct laborers in manufacturing function Fringe benefits to Indirect laborers in manufacturing function Fringe benefits for production supervisors Total overtime premiums paid Cost of idle time: Production employees Administrative costs Rental of office space for sales personnel Sales commissions Product promotion costs Direct material Advertising expenses Depreciation...
ACCT 21 - Chapter 2: Assignment Exercise A: Product Costs, Period Costs, Prime Costs and Conversion Costs The following costs were taken from the Kelly's Company. You are being asked to calculate the product costs, period costs, prime costs, and conversion costs. Cost incurred: Selling expenses $40,000 Direct labor $100,000 Factory insurance $15,000 Factory depreciation $20,000 Indirect labor $35,000 Direct material $145,000 Administrative expenses $35,000 Factory utilities 14,000 Indirect material $10,000
18) The following costs & inventory data were taken from the accounts of Gee Company for 2017: January 1, 2017 December 31, 2017 Inventories: Raw materials Work in process Finished goods $ 9,000 16,000 15,000 $ 6,000 14,000 10,000 Costs incurred during 2017: Raw materials purchases Direct labor Factory rent Factory utilities Indirect materials Indirect labor Selling & administrative expenses $87,000 40,000 8,400 10,100 4,300 8,700 16,000 Instructions a. Prepare a schedule showing the amount of direct materials used in...
Pinnacle Manufacturing manufactures custom wheel covers. Identify each of the preceding costs as either a prime cost period cost or conversion cost. If the cost is a prime cost, decide whether it is for direct materials (DM), direct labor (DL), or manufacturing overhead (MOH). (Select "Both Prime and Conversion Costs" if both of the categories apply for a particular item.) Product Costs Prime/Conversion/Period cost MOH DM MOH MOH Period Cost Conversion Cost Prime Cost Conversion Cost Conversion Cost Administrative Salaries...
I
continue to get $309,000 for period costs but that isn't correct.
the only cost i know that us right is the total prime cost.
The following cost data for the year just ended pertain to Sentiments, Inc., a greeting card manufacturer: Direct material Advertising expense Depreciation on factory building Direct labor: wages Cost of finished goods inventory at year-end Indirect labor! wages Production supervisor's salary Service department costs Direct labor: fringe benefits Indirect labor: fringe benefits Fringe benefits for...
Required Information [The following information applies to the questions displayed below) You have been asked by the CEO of Mountaineer Co to assist in analyzing product costs. This analysis is used in Internal decision making and in reporting to investors. The following Tableau Dashboard provides data needed for the analysis Raw Materials Inventories Raw materials, beginning Raw materials purchases Raw materials used Raw materials, ending $0 $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 Work in Process & Finished Goods...
Exercise 14-6 Cost classification LO C3 Georgia Pacific, a manufacturer, incurs the following costs. (1) Classify each cost as either a product or a period cost. If a product cost, identify it as direct materials, direct labor, or factory overhead, and then as a prime and/or conversion cost. (2) Classify each product cost as either a direct cost or an indirect cost using the product as the cost object. Cost by Traceability Period or Product Direct material, Direct labor, or...
The following costs were incurred by Greetings R Us, a firm manufacturing greetings cards for the last year: Service Department costs (All of the services are provided to manufacturing function) Fringe benefits to Direct laborers in manufacturing function Fringe benefits to Indirect laborers in manufacturing function Fringe benefits for production supervisors Total overtime premiums paid Cost of idle time: Production employees Administrative costs Rental of office space for sales personnel Sales commissions Product promotion costs Direct material Advertising expenses Depreciation...
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