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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