306
E10–16, Concluded
c. Actual hours used in March …………………………………… 330
E10–17
E10–18
a. Direct materials used and transferred to Work in Process: $13,200*
307
E10–18, Concluded
e. Actual factory overhead incurred …………………………… $5,150*
E10–19
a. BRIDGER BIKES INC.
Income Statement
For the Month Ended July 31, 20Y6
b. Materials inventory:
Purchased materials ……………………………………….. $340,000
308
E10–20
a. Direct labor costs for April …………………………………… $ 434,000
E10–21
The CEO must not have been listening very closely at the conference. Just-in-
309
E10–22
This is an actual situation facing the U.S. apparel industry. Warren Featherbone
and other U.S.-based apparel manufacturers are discovering the strategic power
of just-in-time. Rather than competing with the offshore manufacturers on price,
E10–23
Piecework compensation is a characteristic of a traditional manufacturing philos-
ophy that is inconsistent with just-in-time. Under just-in-time, workers are viewed
not just as laborers but as valuable assets of the company. The company wants
310
E10–24
a.
A B C D E F G
1 Patient Franklin Patient Krame
r
2 Activity Activity
Usage × Activity
Rate
A
ctivity
= Cost
A
ctivity
Usage ×
A
ctivity
Rate Activity
= Cost
b. Patient Kramer apparently had a more serious condition than did Patient
311
E10–25
a. UMBRELLA INSURANCE COMPANY
Product Profitability Report
For the Year Ended December 31, 20Y2
Workers’
Auto
Comp. Homeowners
Premium revenue …………………………….. $ 7,200,000 $ 6,500,000 $ 9,200,000
b. Workers’
Auto Comp. Homeowners
Underwriting income as a
312
E10–25, Concluded
d. All three insurance lines have the same percentage of underwriting income to
313
PROBLEMS
P10–1
Product Costs Period Costs
Direct Direct Factory
Materials Labor Overhead Selling Administrative
Cost Cost Cost Cost Expense Expense
a. X
b. X
314
P10–2
1. Schedule of manufacturing costs incurred during April:
Direct Direct Factory
Job Materials Labor Overhead Total
No. 401 $5,500 $ 6,650 $ 1,520 $13,670
No. 402 4,000 4,775 1,200 9,975
2. Schedule of jobs finished during April:
Direct Direct Factory
Job Materials Labor Overhead Total
No. 401 $ 5,500 $ 6,650 $1,520 $13,670
3. Schedule of jobs sold in April*:
Job