7 Running Data began operations on February 1. The company produces GPS watches designed for runners. On February 15, the company purchased 1500 DVD discs to include with each running watch it sells. The DVD is preloaded with product setup information, an instruction manual Including video examples, and warranty details. Each disc cost Running Data $5. During February, 450 discs were taken from the raw materials Inventory. Of these. 70 were taken by the sales manager to sales meetings with prospective retailers to carry the watches and handed out as advertising. The remaining discs were included with the GPS watches that were being manufactured in February. Of the watches that were bundled with the discs during February, 75% were completed and transferred from work in process to finished goods. Of the watches completed during the month, 60% were sold and shipped to customers, Required: 1. Determine the cost of discs that would be in each of the following accounts at February 28: Answer is complete but not entirely correct. 10 Cost of Discs $5,250 95 X 114 b Raw Materials Work in Process Finished Goods Cost of Goods Sold Advertising Expense d 570 X 350 Martinez Company's relevant range of production is 7.500 units to 12,500 units. When it produces and sells 10,000 it unit cost is a follows: Amount per unit Direct Materials $6.90 Direct labour $4.40 Variable manufacturing overhead $1.50 Fixed manufacturing overhead $4.90 Fixed selling expense $3.90 Fixed administrative expense $2.00 Sales commissions $1.00 Variable administrative expense $0.50 1. If 11.000 units are produced, what are the total amounts of direct manufacturing costs incurred to support this level of production? 2. If 11,000 units are produced, what are the total amounts of indirect manufacturing costs incurred to support this level of production? |