A100 Mgl Acctg 1 table cost - problem

A100 Mgl Acctg 1 table cost - problem - $5,000.00 per year...

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A100 - Managerial Accounting - "What does it cost?" And what would the income statement look like? We assemble and sell tables. Some input requirements and costs are: Units sold= 2880 @$300 each Materials Costs per table produced Table Company Table top $30.00 a Income Statement 4 Table legs $16.00 b For the Year Ended Dec. 31 20XX 4 Metal leg brackets $4.00 c 16 screws $1.60 d Sales Wood stain -- for coloring wood k Cost of goods sold Varnish -- for sealing wood l too difficult/costly to measure! Gross profit Abrasives -- for smoothing wood m Selling and admin. expenses: Packing Materials -- box $1.00 e Advertising Packing Materials -- styrofoam "peanuts" $0.30 f Sales commission Packing Materials -- tape and wrap $0.10 g Interest expense Labor Shipping expense One hour assembly time@ $10/hour $10.00 h Building depreciation $4.00 i Property tax Other costs President's salary Production foreman's salary $30,000.00 per year Net Income Newspaper advertising -- an ad. every Friday! $26,000.00 per year Salesman $5.00 Interest on $50,000 loan @ 10%
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Unformatted text preview: $5,000.00 per year Shipping costs $4,000.00 per truckload (240 tables) Cost of the building in which all our business activities takes place (purchased beg. of year) $400,000.00 (Half the building is used for production, the rest for administrative/selling functions) Property tax on building $3,600.00 President's salary $100,000.00 What is the "cost" of one table? One simple solution: Per unit Direct Materials Direct Labor Manufacturing Overhead: Mfg. Labor Indirect materials Bldg. Depreciation (assuming a 10-year life) Property Tax on Bldg. Cost of one table ("product cost") 30 minutes packing time @ $8/hour Per table sold We expect to spend about $11,520 this year, and produce 2,880 tables. We expect the building to last 10 years, and then be worthless. We expect to spend about $11,520 this year, and produce 2,880 tables. D10: We expect the building to last 10 years, and then be worthless. C25:...
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A100 Mgl Acctg 1 table cost - problem - $5,000.00 per year...

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