Direct labor costs include all of the following, except?
a. Wages of workers who transform direct materials into the finished product.
b. Wages of workers who actually have his or her hands on the product or on the machine as the product is being made.
c. Supervisors who oversee the production process.
d. Benefits paid to the workers who transform direct materials into finished products.
Direct labor costs include all of the following, except?
a. Wages of workers who transform direct materials into the finished product.
b. Wages of workers who actually have his or her hands on the product or on the machine as the product is being made.
c. Supervisors who oversee the production process.
d. Benefits paid to the workers who transform direct materials into finished products.
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Sierra Company manufactures woven blankets and accounts for product costs using process costing. Data below are for one of its processing departments. The following information is available regarding its May inventories
| Beginning Inventory | Ending Inventory | |||||
| Raw materials inventory | $ | 65,000 | $ | 77,000 | ||
| Work in process inventory | 441,500 | 555,000 | ||||
| Finished goods inventory | 632,000 | 517,000 | ||||
The following additional information describes the company's production activities for May.
| Raw materials purchases (on credit) | $ | 250,000 | |
| Factory wages cost (paid in cash) | 1,562,000 | ||
| Other overhead cost (Other Accounts credited) | 38,000 | ||
| Materials used | |||
| Direct | $ | 158,000 | |
| Indirect | 80,000 | ||
| Labor used | |||
| Direct | $ | 800,000 | |
| Indirect | 762,000 | ||
| Overhead rate as a percent of direct labor | 110 | % | |
| Sales (on credit) | $ | 3,500,000 | |
The predetermined overhead rate was computed at the beginning of the year as 110% of direct labor cost.
1. Compute the cost of products transferred from production to finished goods and cost of goods sold.
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1.) When products held in inventory are sold:
A.)Cost of Goods Sold is credited.
B.)Work in Process Inventory is credited.
C.)Finished Goods Inventory is credited.
D.)Finished Goods Inventory is debited.
2.)Since manufacturing costs (direct materials, direct labor,and overhead) are incurred in the process of manufacturing units ofproduct, these costs are credited t
| A.) | The Direct Materials Inventory, Direct Labor, and ManufacturingOverhead accounts respectively. |
| B.) | Liability accounts. |
| C.) | The Work in Process Inventory account. |
| D.) | The Cost of Goods Sold account. |
3.)Management accounting systems are designed to assistorganizations in the performance of all of the following functionsexcept:
| A.) | The assignment of decision-making authority over companyassets. |
| B.) | Planning and decision-making. |
| C.) | Monitoring, evaluating, and rewarding performance. |
| D.) | The preparation of income tax returns. |
4.)In a schedule of cost of finished goods manufactured, thefigure for total manufacturing costs:
| A.) May be less than the cost of direct materials used. | |
| B.) May be less than the direct labor costs assigned toproduction. | |
| C.) May be less than the manufacturing overhead applied toproduction. | |
| D.) May be less than the cost of finished goodsmanufactured. |
5.) When a manufacturing company purchases raw materials orcomponent parts to be used in manufacturing finished goods, thesecosts are initially debited to:
| A.) Expense accounts. | |
| B.) Raw Materials Inventory. | |
| C.) Finished Goods Inventory. | |
| D.) Manufacturing Overhead. |
6.) The wages paid to employees working directly on a company'sproducts would be shown as a:
| A.) Credit to Direct Labor. | |
| B.) Debit to Direct Labor. | |
| C.) Credit to Work in Process. | |
| D.) Debit to Manufacturing Overhead. |
7.) Amounts credited to the Work in Process inventory accountmay best be described as:
| A.) The cost of finished goods manufactured. | |
| B.) Total manufacturing costs charged to production. | |
| C.) The cost of goods sold. | |
| D.) Direct materials purchased, direct labor costs paid, andpayments for items classified as manufacturing overhead. |
Yoder Furniture Works----the question is a the very end,I just provided supporting documents.
Yoder Furniture Works manufactures a high-quality, woodenrocker-recliner. A key differentiating feature of thisrocker-recliner is the ease with which a hand-operated lever raisesand lowers the footrest. Yoder left the prototype phase and begancommercial production on January 1, 2015. A retired accountant ofthe founder, Steve Yoder, maintained the accounting records on atemporary basis through January 31, 2015. Now, Yoder is searchingfor a replacement. Potential candidates are being askedto evaluate the information from the first month of commercialoperation as follows:
Cost information | |
Administrative expenses | $22,000 |
Advertising expenses | 11,700 |
Cash account balance, January 1, 2015 | 0 |
Depreciation on production equipment and factory building | 2,000 |
Depreciation on administrative offices | 750 |
Insurance on production equipment and factory building | 1,700 |
Administrative supplies expense | 550 |
Property taxes on production equipment and factory building | 425 |
Sales commissions | 18,700 |
Utilities for production equipment and factory building | 1,650 |
Wages paid to production workers | 67,800 |
Direct materials inventory, January 1, 2015 | 0 |
Direct materials inventory, January 31, 2015 | 0 |
Direct materials purchases during January 2015 | 83,400 |
Work in process inventory, January 1, 2015 | 0 |
Work in process inventory, January 31, 2015 | 0 |
Finished goods inventory, January 1, 2015 | 0 |
Production and sales information | |
Units produced during January 2015 | 600 |
Units sold during January 2015 | 490 |
Sales price per unit | $500 |
Based on the above information, answer the followingquestions:
Classify costs as either product costs or period costs using theformat shown below. Enter the dollar amount for each cost in theappropriate column and total each classification.
Item | Product Costs | Period Costs | ||
Direct Materials | Direct Labor | Manufacturing Overhead | ||
Admin Expenses | 22,000 | |||
Advertising Exp | 11,700 | |||
Depreciation Equipment and Building | 2,000 | |||
Depreciation on Admin Offices | 750.00 | |||
Insurance on production Equip and Fac.Building | 1,700 | |||
Administrative Supplies Exp | 550.00 | |||
Property taxes on production Equipment and FactoryBuild. | 425.00 | |||
Sales commissions | 18,700 | |||
Utilities for production equipment and factorybuilding | 1,650.00 | |||
Wages paid to production workers | 67,800 | |||
Direct materials purchases during January2015 | 83,400.00 | |||
Total | 83,400 | 67,800 | 5,775 | 53,700 |
Classify costs as either variable costs or fixed costs. Assumethere are no mixed costs. Enter the dollar amount for each cost inthe appropriate column and total each classification. Use theformat shown below. Assume that Utilities for production equipmentand factory building are a fixed cost
Item | Variable Costs | Fixed Costs | Total Costs |
Admin Expenses | 22,000 | ||
Advertising Exp | 11,700 | ||
Depreciation Equipment and Building | 2,000 | ||
Depreciation on Admin Offices | 750.00 | ||
Insurance on production Equip and Fac.Building | 1,700 | ||
Administrative Supplies Exp | 550 | ||
Property taxes on production Equipment and FactoryBuild. | 425 | ||
Sales commissions | 18,700 | ||
Utilities for production equipment and factorybuilding | 1,650.00 | ||
Wages paid to production workers | 67,800 | ||
Direct materials purchases during January2015 | 83,400.00 | ||
Total | 169,900 | 40,775.00 |
The ones below, I am having trouble with.
Determine the per-unit variable cost of a chair.
Determine the per-unit contribution margin and the contributionmargin percentage.
