Cornerstone exercise 22 cost of goods manufactured

2 Cornerstone Exercise 2.2
Cost of Goods Manufactured
Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,000 units
will be produced, with the following total costs:
Next year, Pietro expects to purchase $119,300 of direct materials. Projected beginning and
ending inventories for direct materials and work in process are as follows:
Required:
0 1 1

1. Prepare a statement of cost of goods manufactured in good form.

Direct labor
60000
Manufacturing (Factory) overhead
245000
Total manufacturing
costs added
$ 425000
Add: Beginning work in process
12500
Less: Ending work in process
14600
Cost of goods
manufactured
$ 422900
3
Cornerstone Exercise 2.5
Costs of Services
Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a
house-cleaning service. Each cleaning (cleaning one house one time) takes a
team of three house cleaners about 1.5 hours. On average, HHH completes
about 15,000 cleanings per year. The following total costs are associated
with the total cleanings:
Required:
If required, round your answers to the nearest cent.
1. Calculate the prime cost per cleaning.
2. Calculate the conversion cost per cleaning.
Total manufacturi
Cost of goods ma

3. Calculate the total variable cost per cleaning.
4. Calculate the total service cost per cleaning.
5. What if rent on the office that Jean and Tom use to run HHH increased by
$1,500? Which of the following statements best describes the effect of this
on HHH's costs?