Chapter 1 Basic Cost Concepts for Managers(FILEminimizer)

Chapter 1 Basic Cost Concepts for Managers(FILEminimizer) -...

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Unformatted text preview: Exercises: Set B 1 EXERCISES: SET B Determine the total amount of various types of costs. (SO 3, 4) Classify various costs into dif- ferent cost categories. (SO 4) Compute cost of goods manu- factured and sold. (SO 5, 6) E1-1B Erickson Company reports the following costs and expenses in May. Factory utilities $ 16,500 Direct labor $79,100 Depreciation on factory Sales salaries 46,400 equipment 12,650 Property taxes on factory Depreciation on delivery trucks 8,800 building 2,500 Indirect factory labor 48,900 Repairs to office equipment 1,300 Indirect materials 80,800 Factory repairs 2,000 Direct materials used 137,600 Advertising 18,000 Factory manager’s salary 13,000 Office supplies used 5,640 Instructions From the information, determine the total amount of: (a) Manufacturing overhead. (b) Product costs. (c) Period costs. E1-2B Quick Delivery Service reports the following costs and expenses in June 2008. Indirect materials $ 8,400 Drivers’ salaries $15,000 Depreciation on delivery Advertising 1,600 equipment 11,200 Delivery equipment Dispatcher’s salary 5,000 repairs 300 Property taxes on office Office supplies 650 building 2,870 Office utilities 990 CEO’s salary 12,000 Repairs on office Gas and oil for delivery trucks 2,200 equipment 680 Instructions Determine the total amount of (a) delivery service (product) costs and (b) period costs. E1-3B Sherrill Corporation incurred the following costs while manufacturing its product. Materials used in product $120,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 19,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line workers 110,000 Sales commissions 35,000 Factory supplies used 23,000 Salaries paid to sales clerks 50,000 Work-in-process inventory was $10,000 at January 1 and $15,500 at December 31. Finished goods inventory was $60,000 at January 1 and $50,600 at December 31. Instructions (a) Compute cost of goods manufactured. (b) Compute cost of goods sold. E1-4B An incomplete cost of goods manufactured schedule is presented below. MARICHAL MANUFACTURING COMPANY Cost of Goods Manufactured Schedule For the Year Ended December 31, 2008 Work in process (1/1) $210,000 Direct materials Raw materials inventory (1/1) ? Add: Raw materials purchases $ 168,000 Total raw materials available for use ? Less: Raw materials inventory (12/31) 17,500 Direct materials used $190,000 Direct labor ? Manufacturing overhead Determine missing amounts in cost of goods manufactured schedule. (SO 6) Indirect labor $ 18,000 Factory depreciation 36,000 Factory utilities 68,000 Total overhead 122,000 Total manufacturing costs ? Total cost of work in process ? Less: Work in process (12/31) 81,000 Cost of goods manufactured $550,000 Instructions Complete the cost of goods manufactured schedule for Marichal Manufacturing Company....
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This note was uploaded on 10/25/2011 for the course ACCOUNTING 343 taught by Professor Javad during the Winter '04 term at Al-Quds University.

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Chapter 1 Basic Cost Concepts for Managers(FILEminimizer) -...

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