ACIS 2116 Chapter 3 Class Examples

ACIS 2116 Chapter 3 Class Examples - Wages paid to...

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ACIS 2116 - Chapter 3 Examples Example 1: Blacksburg Book Manufacturing, Inc. produces textbooks. Classify each of the following manufacturing costs as one of the following: 1. direct labor 2. indirect labor 3. direct materials 4. indirect materials. 5. other manufacturing overhead Cost: Classification Wages paid to employees that operate printing machines Cost of paper used for each book Wages paid to employees that repair and maintain machinery Cost of a container of glue used for binding books Factory foreman’s salary Factory cleaning supplies Fire insurance Depreciation on factory machinery Example 2: Tera Drabley Manufacturing Company manufactures book bags made of fabric. Tera Drabley produced 8,000 bags and incurred the following costs in January:
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Unformatted text preview: Wages paid to employees that operating cutting and sewing machinery $50,000 Advertising Costs 2,000 Wages paid to factory cleaning staff 16,000 Factory rent 4,000 Rent on administrative offices 3,000 Administrative salaries 20,000 Fabric used to make products 10,000 Miscellaneous supplies used in the factory 4,500 Factory supervisors salary 5,000 Administrative office depreciation 1,000 Factory Depreciation 6,500 Required : A. Calculate total direct labor costs. B. Calculate total indirect labor costs. C. Calculate total direct materials costs. D. Calculate total manufacturing overhead costs. E. Calculate total product costs. F. Calculate product cost on a per unit basis....
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ACIS 2116 Chapter 3 Class Examples - Wages paid to...

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