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2 Cornerstone Exercise 2.2Cost of Goods ManufacturedPietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 50,000 unitswill be produced, with the following total costs:Next year, Pietro expects to purchase $119,300 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows:Required:011
1.Prepare a statement of cost of goods manufactured in good form.
Direct labor 60000Manufacturing (Factory) overhead 245000Total manufacturing costs added$ 425000Add: Beginning work in process 12500Less: Ending work in process 14600Cost of goods manufactured$ 4229003Cornerstone Exercise 2.5Costs of ServicesJean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes ateam 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 manufacturiCost of goods ma
3.Calculate the total variable cost per cleaning.4.Calculate the total service cost per cleaning.5. What ifrent 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?