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ACIS 2116 Chapter 3 Attendance Quiz Example Spring 2009-1

ACIS 2116 Chapter 3 Attendance Quiz Example Spring 2009-1 -...

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ACIS 2116 - Chapter 3 Example Tera Drabley Manufacturing Company manufactures book bags made of fabric. Tera Drabley produced 8,000 bags and incurred the following costs in January: Wages paid to employees that operate 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 supervisor’s salary 5,000 Administrative office depreciation 1,000 Factory Depreciation
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Unformatted text preview: 6,500 Assume Tera Drabley began the month with no beginning work-in process and no finished goods. Although 8,000 bags were completely finished during January, only 7,000 of these bags were sold for $35 each. 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. G. Calculate Tera Drabley’s net income for January....
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