Question
2. ) E2-4A. Prime Cost and Conversion Cost Piper Consulting Company incurred the following during 2016: Direct labor . . . . . . .
2. ) E2-4A. Prime Cost and Conversion Cost Piper Consulting Company incurred the following during 2016:
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $30,000
Overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000
Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000
Calculate prime cost and conversion cost for Piper Consulting Company during 2016.
A B C
Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 600 $ 700 $ 900
Factory insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 270 300
Ending finished goods inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 620 660 930
Non-factory administrative expenses. . . . . . . . . . . . . . . . . . . . . . . . . .300 400 800
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,130 2,850 3,160
Beginning materials inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425 575 850
Beginning work in process inventory . . . . . . . . . . . . . . . . . . . . . . . . . 840 920 1,290
Indirect material used. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .270 325 520
Factory utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .350 360 500
Factory depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .820 740 965
Ending work in process inventory . . . . . . . . . . . . . . . . . . . . . . . . . . 790 985 1,425
Ending materials inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385 610 820
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225 410 365
Beginning finished goods inventory . . . . . . . . . . . . . . . . . . . . . . . . . .565 680 950
Factory repairs and maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . 330 250 415
Net delivered cost of materials purchased. . . . . . . . . . . . . . . . . . . . .. 2,780 3,620 8,170
Factory supplies used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .210 230 260
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