EXERCISE 1 - EXERCISE 1-2 1. 2. 3. 4. 5. 6. 7. 8. 9. 10....

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EXERCISE 1-2 1. (b) Direct labor.* 2. (c) Manufacturing overhead. 3. (c) Manufacturing overhead. 4. (c) Manufacturing overhead. 5. (a) Direct materials. 6. (b) Direct labor. 7. (c) Manufacturing overhead. 8. (c) Manufacturing overhead. 9. (c) Manufacturing overhead. 10. (a) Direct materials. *or sometimes (c), depending on the circumstances EXERCISE 1-3 (a) Factory utilities. ....................................................................... $ 8,500 Depreciation on factory equipment. ...................................... 12,650 Indirect factory labor. .............................................................. 48,900 Indirect materials. .................................................................... 80,800 Factory manager’s salary. ...................................................... 8,000 Property taxes on factory building. ....................................... 2,500 Factory repairs. ........................................................................ 2,000 Manufacturing overhead. ........................................................ $163,350
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EXERCISE 1-3 (Continued) (b) Direct materials. ....................................................................... $137,600 Direct labor. .............................................................................. 69,100 Manufacturing overhead. ........................................................ 163,350 Product costs. .......................................................................... $370,050 (c) Depreciation on delivery trucks. ............................................ $ 3,800 Sales salaries. .......................................................................... 49,400 Repairs to office equipment. .................................................. 1,300 Advertising. .............................................................................. 18,000 Office supplies used. ............................................................... 2,640 Period costs. ............................................................................ $ 75,140 EXERCISE 1-5 1. b 2. c 3. a 4. c 5. c 6. c 7. c 8. c 9. c 10.c
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EXERCISE 1-8 A + $57,000 + $46,500 = $180,650 $252,500 – $11,000 = F A = $77,150 F = $241,500 $180,650 + B = $221,500 $130,000 + G + $102,000 = $253,700 B = $40,850 G = $21,700 $221,500 – C = $185,275 $253,700 + H = $327,000 C = $36,225 H = $73,300 $68,400 + $86,000 + $81,600 = D $327,000 – $70,000 = I D = $236,000 I = $257,000 $236,000 + $16,500 = E E = $252,500 Additional explanation to EXERCISE 1-8 solution: Case A (a) Total manufacturing costs. ................................................ $180,650.
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EXERCISE 1 - EXERCISE 1-2 1. 2. 3. 4. 5. 6. 7. 8. 9. 10....

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