Account chapter 14

A cell phone company offers two different plans. Plan A costs $91 per month for unlimited talk and text. Plan B costs $0.20 per minute plus $0.10 per text message sent. You need to purchase a plan for your teenage sister. Your sister currently uses 1,700 minutes and sends 1,650 texts each month. 1. What is your sister's total cost under each of the two plans? 2. Suppose your sister doubles her monthly usage to 3,400 minutes and sends 3,300 texts. What is your sister's total cost under each of the two plans? Plans Total Cost 1 Plan A Plan B 2. Plan A Plan B Compute ending work in process inventory for a manufacturer with the following information. Raw materials purchased Direct materials used Direct labor used Total factory overhead Work in process inventory, beginning of year Cost of goods manufactured $122,200 78,400 62,000 102,700 29,600 228,400 Ending Work in Process Inventory is Computed as: Cost of goods manufactured Direct labor used in production Direct materials used in production Factory overhead used in production Raw materials purchased Work in process inventory, end of year Compute the total manufacturing cost for a manufacturer with the following information for the month. Raw materials purchased Direct materials used Direct labor used Factory supervisor salary Salesperson commissions Depreciation expense-Factory building Depreciation expense-Delivery equipment Indirect materials $ 42,400 59,000 16,400 8,400 9,400 3,700 3,800 1,300 Total Manufacturing Cost is Computed as: Direct labor used in production Direct materials used in production Factory overhead used in production Raw materials purchased Prepare the schedule of cost of goods manufactured for Barton Company using the following information. Direct materials Direct labor Factory overhead costs Work in process, beginning Work in process, ending $ 250,000 66,000 24,400 158,800 151,750 Barton Company Schedule of Cost of Goods Manufactured Direct labor Direct materials Factory overhead costs Cost of goods manufactured Use the following information to compute the cost of direct materials used for the current year. Assume the raw materials inventory account is used only for direct materials. (Assume no indirect materials.) January 1 December 31 $ 8,100 13, 200 11,300 $ 8,600 11,200 5,600 Inventories Raw materials inventory Work in process inventory Finished goods inventory Activity during current year Materials purchased Direct labor Factory overhead $133,500 98,800 45,000 Cost of Direct Material Used is Computed as: Direct materials used Finished goods inventory Raw materials available for use Raw materials inventory, beginning Work in process inventory Selected costs related to Apple's iPhone are listed below. Identify each cost as either direct materials, direct labor, factory overhead, selling expenses, or general and administrative expenses by selecting the appropriate dropdowns. 1. Display screen 2. Camera Direct material Direct labor 3. Advertising campaigns 4. Maintenance of assembly equipment 5. Charger 6. Depreciation (straight-line) on robotic equipment used in assembly 7. Salary of the chief executive officer 8. Wages for assembly workers General and administrative expense Selling Expense Factory overhead For each of the following accounts for a manufacturing company, select yes in the appropriate column indicating that it appears on the balance sheet, the income statement, the schedule of cost of goods manufactured, and/or a detailed listing of factory overhead costs. Assume that the income statement shows the calculation of cost of goods sold and the schedule of cost of goods manufactured shows only the total amount of factory overhead. (An account can appear on more than one report. Be certain to select "No" wherever required.) Account Balance Sheet Income Statement Schedule of COGM Overhead Report Yes No Property taxes on factory building Raw materials purchases Sales Beginning work in process inventory Wages for production welders Beginning raw materials inventory Income taxes Insurance on factory building Cost of goods sold Factory supervisor salary Ending raw materials inventory