Ch 2 Solutions to Assigned Homework

# Ch 2 Solutions to Assigned Homework - EXERCISES Exercise...

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EXERCISES Exercise 2–31 Product Cost Period Cost Costs Direct Materials Direct Labor Manufact. Overhead Selling Expense Administrative Expense Direct materials \$216,000 Factory rent \$ 24,000 Direct labor \$120,000 Factory utilities 6,300 Supervision in the factory 50,000 Indirect labor in the factory 30,000 Depreciation on factory factory equip- ment 9,000 Sales commissions \$ 27,000 Sales salaries 65,000 Advertising 37,000 Depreciation on the headquar- ters building \$ 10,000 Salary of the corporate receptionist 30,000 Other administrative costs 175,000 Salary of the factory receptionist 28,000 Totals \$216,000 \$120,000 \$147,300 \$129,000 \$215,000 2. Direct materials \$216,000 Direct labor 120,000 Manufacturing overhead 147,300 Total product cost \$483,300 3. Total period cost = \$129,000 + \$215,000 = \$344,000

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4. Unit product cost = 30,000 \$483,300 = \$16.11 Exercise 2–33 1. Direct materials \$400,000 Direct labor 80,000 Manufacturing overhead 320,000 Total product cost \$800,000 2. Product cost per unit = units of Number cost product Total = 6,400 \$800,000 = \$125.00 Exercise 2–34 1. Direct materials \$400,000 Direct labor 80,000 Total prime cost \$480,000 2. Prime cost per unit = units of Number cost prime Total = 6,400 \$480,000 = \$75.00 3. Direct labor \$ 80,000 Manufacturing overhead 320,000 Total conversion cost \$400,000 4. Conversion cost per unit = units of Number cost conversion Total = 6,400 \$400,000 = \$62.50
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Ch 2 Solutions to Assigned Homework - EXERCISES Exercise...

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