Hummer Company uses manufacturing cells to produce its products (a cell is a manufacturing unit dedicated to the production of subassemblies or products). One manufacturing cell produces small motors for lawn mowers. Suppose that the motor manufacturing cell is the cost object. Assume that all or a portion of the following costs must be assigned to the cell.

Required:

Classify each of the costs as a direct cost or an indirect cost to the motor manufacturing cell.

a.	Salary of cell supervisor	_________________
b.	Power to heat and cool the plant in which the cell is located	_________________
c.	Materials used to produce the motors	_________________
d.	Maintenance for the cell's equipment (provided by the maintenance department)	_________________
e.	Labor used to produce motors	_________________
f.	Cafeteria that services the plant's employees	_________________
g.	Depreciation on the plant	_________________
h.	Depreciation on equipment used to produce the motors	_________________
i.	Ordering costs for materials used in production	_________________
j.	Engineering support (provided by the engineering department)	_________________
k.	Cost of maintaining the plant and grounds	_________________
l.	Cost of the plant's personnel office	_________________
m.	Property tax on the plant and land	_________________

2.

Total Product Cost and Per-Unit Product Cost

Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $26,000 were put into production. Direct labor of $20,000 (10 workers x 100 hours x $20 per hour) was incurred. Manufacturing overhead equaled $70,000. By the end of the week, the company had manufactured 7,000 hockey sticks.

Required:

1. Calculate the total product cost for last week. $ _________________

2. Calculate the per-unit cost of one hockey stick that was produced last week. Round your answer to the nearest cent. $ _________________ per unit

3.

Prime Cost and Conversion Cost

Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $28,000 were put into production. Direct labor of $20,000 (10 workers x 100 hours x $20 per hour) was incurred. Manufacturing overhead equaled $51,000. By the end of the week, the company had manufactured 4,000 hockey sticks.

1. Calculate the total prime cost for last week. $ _________________

2. Calculate the per-unit prime cost. Round your answer to the nearest cent. $ _________________ per unit

3. Calculate the total conversion cost for last week. $ _________________

4. Calculate the per-unit conversion cost. Round your answer to the nearest cent. $ _________________ per unit

4.

Direct Materials Used in Production

Slapshot Company makes ice hockey sticks. On June 1, Slapshot had $40,000 of materials in inventory. During the month of June, the company purchased $117,000 of materials. On June 30, materials inventory equaled $56,000.

Required:

Calculate the direct materials used in production for the month of June. $ _________________

5.

Cost of Goods Manufactured

Slapshot Company makes ice hockey sticks. During the month of June, the company purchased $121,000 of materials. Also during the month of June, Slapshot Company incurred direct labor cost of $159,000 and manufacturing overhead of $218,000. Inventory information is as follows:

Required:

1. Calculate the cost of goods manufactured for the month of June. $ _________________

2. Calculate the cost of one hockey stick assuming that 18,000 sticks were completed during June. Round your answer to the nearest cent. $ _________________ per hockey stick

6.

Direct Materials Used, Cost of Goods Manufactured

In March, Chilton Company purchased materials costing $13,000 and incurred direct labor cost of $18,000. Overhead totaled $35,000 for the month. Information on inventories was as follows:

	March 1		March 31
Materials	$8,000		$8,400
Work in process	$1,700		$9,000
Finished goods	$6,000		$9,700

Required:

1. What was the cost of direct materials used in March? $ _________________

2. What was the total manufacturing cost in March? $ _________________

3. What was the cost of goods manufactured for March? $ _________________

7.

Cost of Goods Sold

In March, Chilton Company purchased materials costing $42,000 and incurred direct labor cost of $11,500. Overhead totaled $84,000 for the month. Information on inventories was as follows:

Required:

What was the cost of goods sold for March? $ _________________

Hummer Company uses manufacturing cells to produce its products (a cell is a manufacturing unit dedicated to the production of subassemblies or products). One manufacturing cell produces small motors for lawn mowers. Suppose that the motor manufacturing cell is the cost object. Assume that all or a portion of the following costs must be assigned to the cell. Required: Classify each of the costs as a direct cost or an indirect cost to the motor manufacturing cell. a. Salary of cell supervisor b. Power to heat and cool the plant in which the cell is located c. Materials used to produce the motors d. Maintenance for the cell's equipment (provided by the maintenance department) e. Labor used to produce motors f. Cafeteria that services the plant's employees g. Depreciation on the plant h. Depreciation on equipment used to produce the motors i. Ordering costs for materials used in production j. Engineering support (provided by the engineering department) k. Cost of maintaining the plant and grounds l. Cost of the plant's personnel office m. Property tax on the plant and land 2. Total Product Cost and PerUnit Product Cost Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $26,000 were put into production. Direct labor of $20,000 (10 workers x 100 hours x $20 per hour) was incurred. Manufacturing overhead equaled $70,000. By the end of the week, the company had manufactured 7,000 hockey sticks. Required: 1. Calculate the total product cost for last week. $ _________________ 2. Calculate the perunit cost of one hockey stick that was produced last week. Round your answer to the nearest cent. $ _________________ per unit 3. Prime Cost and Conversion Cost Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $28,000 were put into production. Direct labor of $20,000 (10 workers x 100 hours x $20 per hour) was incurred. Manufacturing overhead equaled $51,000. By the end of the week, the company had manufactured 4,000 hockey sticks. 1. Calculate the total prime cost for last week. $ _________________ 2. Calculate the perunit prime cost. Round your answer to the nearest cent. $ _________________ per unit 3. Calculate the total conversion cost for last week. $ _________________ 4. Calculate the perunit conversion cost. Round your answer to the nearest cent. $ _________________ per unit 4. Direct Materials Used in Production Slapshot Company makes ice hockey sticks. On June 1, Slapshot had $40,000 of materials in inventory. During the month of June, the company purchased $117,000 of materials. On June 30, materials inventory equaled $56,000. Required: Calculate the direct materials used in production for the month of June. $ _________________ 5. Cost of Goods Manufactured Slapshot Company makes ice hockey sticks. During the month of June, the company purchased $121,000 of materials. Also during the month of June, Slapshot Company incurred direct labor cost of $159,000 and manufacturing overhead of $218,000. Inventory information is as follows: Required: 1. Calculate the cost of goods manufactured for the month of June. $ _________________ 2. Calculate the cost of one hockey stick assuming that 18,000 sticks were completed during June. Round your answer to the nearest cent. $ _________________ per hockey stick 6. Direct Materials Used, Cost of Goods Manufactured In March, Chilton Company purchased materials costing $13,000 and incurred direct labor cost of $18,000. Overhead totaled $35,000 for the month. Information on inventories was as follows: March 1 March 31 Materials $8,000 $8,400 Work in process $1,700 $9,000 Finished goods $6,000 $9,700 Required: 1. What was the cost of direct materials used in March? $ _________________ 2. What was the total manufacturing cost in March? $ _________________ 3. What was the cost of goods manufactured for March? $ _________________ 7. Cost of Goods Sold In March, Chilton Company purchased materials costing $42,000 and incurred direct labor cost of $11,500. Overhead totaled $84,000 for the month. Information on inventories was as follows: Required: What was the cost of goods sold for March? $ _________________