This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
2-121
salary
Advertising
128.
A manufacturing company, has provided the following data for the month of March:
Inventories:
Beginning
Ending
Raw materials
$36,000
$24,000
Finished goods
$57,000
$28,000
Raw materials purchased during March totaled $69,000 and the cost of goods
2-122
129.
During the month of June, Bolder Corporation, a manufacturing company, purchased raw
materials costing $76,000. The cost of goods manufactured for the month was $129,000.
The beginning balance in the raw materials account was $26,000 and the ending balance
was $21,000. The beginning balance in the finished goods account was $52,000 and the
ending balance was $35,000.
Required:
2-124
130.
A partial listing of costs incurred at Marshall Corporation during August appears below:
Direct materials
$135,000
Utilities, factory
$11,000
Sales commissions
$69,000
Administrative salaries
$101,000
Indirect labor
$29,000
Advertising
$94,000
Depreciation of production equipment
$31,000
Direct labor
$73,000
Depreciation of administrative
equipment
$40,000
2-126
131.
Grankowski Corporation has provided the following partial listing of costs incurred during
November:
Marketing salaries
$47,000
Property taxes, factory
$6,000
Administrative travel
$113,000
Sales commissions
$56,000
Indirect labor
$36,000
Direct materials
$119,000
Advertising
$63,000
Depreciation of production equipment
$56,000
Direct labor
$117,000
2-128
132.
133.
In July, Mountain Life, Inc., a merchandising company, had sales of $295,000, selling
expenses of $24,000, and administrative expenses of $29,000. The cost of merchandise
purchased during the month was $215,000. The beginning balance in the merchandise
inventory account was $25,000 and the ending balance was $30,000.
Required:
Prepare an Income Statement in good form for July.
134.
A number of costs and measures of activity are listed below.
Cost Description
Possible
Measure of
Activity
1.
Cost of heating a hardware
store
Dollar sales
2.
Windshield wiper blades
installed on autos at an
Number of
autos
2-130
auto assembly plant
assembled
3.
Cost of tomato sauce used
at a pizza shop
Pizzas cooked
4.
Cost of shipping bags of
fertilizer to a customer at a
chemical plant
Bags shipped
5.
Cost of electricity for
production equipment at a
snowboard manufacturer
Snowboards
produced
6.
Cost of renting production
equipment on a monthly
basis at a snowboard
manufacturer
Snowboards
produced
7.
Cost of vaccine used at a
clinic
Vaccines
administered
8.
Cost of sales at a hardware
store
Dollar sales
9.
Receptionist’s wages at
dentist’s office
Number of
patients
10.
Salary of production
manager at a snowboard
manufacturer
Snowboards
produced
Required:
For each item above, indicate whether the cost is MAINLY fixed or variable with respect
to the possible measure of activity listed next to it.
2-131
2-133
135.
A number of costs and measures of activity are listed below.
Cost Description
Possible
Measure of
Activity
1.
Cost of renting production
equipment on a monthly
basis at a surfboard
manufacturer
Surfboards
produced
2.
Pilot’s salary on a regularly
scheduled commuter airline
Number of
passengers
3.
Cost of dough used at a
pizza shop
Pizzas cooked
4.
Janitorial wages at a
surfboard manufacturer
Surfboards
produced
5.
Cost of shipping bags of
garden mulch to a retail
garden store
Bags shipped
6.
Salary of production
manager at a surfboard
manufacturer
Surfboards
produced
7.
Property tax on corporate
headquarters building
Dollar sales
8.
Cost of heating an
electronics store
Dollar sales
9.
Shift manager’s wages at a
coffee shop
Dollar sales
10.
Cost of bags used in
packaging chickens for
shipment to grocery stores
Crates of
chicken
shipped
Required:
For each item above, indicate whether the cost is MAINLY fixed or variable with respect
2-134
to the possible measure of activity listed next to it.
2-136
136.
A number of costs are listed below.
Cost Description
Cost Object
1.
Supervisor’s wages in a
computer manufacturing
facility
A particular
personal
computer
2.
Salary of the president of a
home construction company
A particular
home
3.
Cost of tongue depressors
used in an outpatient clinic
at a hospital
The outpatient
clinic
4.
Cost of lubrication oil used
at the auto repair shop of an
automobile dealer
The auto repair
shop
5.
Manger’s salary at a hotel
run by a chain of hotels
The particular
hotel
6.
Cost of screws used to
secure wood trim in a yacht
at a yacht manufacturer
A particular
yacht
7.
Accounting professor’s
salary
The Accounting
Department
8.
Cost of a measles vaccine
administered at an
outpatient clinic at a
hospital
A particular
patient
9.
Cost of electronic navigation
system installed in a yacht
at a yacht manufacturer
A particular
yacht
10.
Wood used to build a home
A particular
home
Required:
For each item above, indicate whether the cost is direct or indirect with respect to the
2-138
137.
The following data relates to the Sunshine Company:
Direct Materials Inventory, Beginning
$40
Direct Materials Inventory, Ending
50
Direct Materials Purchases
210
Direct Labor
350
Finished Goods Inventory, Beginning
100
Finished Goods Inventory, Ending
95
Factory overhead
153
Work-in-Process Inventory, Beginning
65
Work-in-Process Inventory, Ending
80
Required:
Calculate direct materials purchased, direct labor costs, and cost of goods sold.
2-140
138.
A computer virus destroyed some of the accounting records for Dorchester Antique
Remodeling Company for the periods of 2016-2018. The following information was
salvaged from the computer system.
Required:
Determine the correct amounts for A through P.
12/31/16
12/31/17
12/31/18
Beginning direct
materials
$50,250
F
$45,210
Purchases of
direct materials
A
65,250
70,125
Ending direct
materials
34,165
45,210
L
Direct materials
used
91,385
54,205
M
Direct labor
B
155,050
162,000
Manufacturing
overhead
115,325
G
127,145
Total
manufacturing
costs
C
319,255
364,130
Beginning work-
in-process
inventory
36,450
H
29,635
Ending work-in-
process inventory
21,985
29,635
N
Costs of goods
manufactured
386,700
I
362,920
Beginning
finished goods
inventory
37,000
J
42,500
Ending finished
D
42,500
39,550
Trusted by Thousands of
Students
Here are what students say about us.
Resources
Company
Copyright ©2022 All rights reserved. | CoursePaper is not sponsored or endorsed by any college or university.