Question
PLEASE ANSWER ALL QUESTIONS AND SHOW YOUR WORK! Kawhi, Inc., which uses a volume-based cost system, produces cat condos, and has a gross profit margin
PLEASE ANSWER ALL QUESTIONS AND SHOW YOUR WORK!
Kawhi, Inc., which uses a volume-based cost system, produces cat condos, and has a gross profit margin of 68%. Direct materials cost $19 per unit, and direct labor costs $23 per unit. Manufacturing overhead is applied at a rate of 140% of direct labor cost. Nonmanufacturing costs are $13 per unit.
How much does each cat condo sell for?
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Mills, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $24 per machine hour, and the activity rate for Inspection is $40 per batch. The activity drivers are used as follows:
| Product A | Product X |
Machine hours | 1,910 | 1,662 |
Number of batches | 164 | 230 |
What is the total cost of Machining?
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Solo Manufacturing company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost to be $163,800 and machine hours to be 13,600. Actual manufacturing overhead was $129,700 and actual machine hours was 13,570.
What is the debit to manufacturing overhead?
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Ginobili Corp has the following information:
| Beginning Inventory (1/1) |
| Ending Inventory (12/31) | ||
Raw Materials Inventory | $ | 24,421 |
| $ | 22,877 |
Work in Process Inventory | $ | 10,077 |
| $ | 9,013 |
Finished Goods Inventory | $ | 16,679 |
| $ | 19,957 |
Additional information for the year is as follows:
Raw materials purchases | $ | 56,387 |
Direct labor | $ | 44,554 |
Manufacturing overhead applied | $ | 45,362 |
Indirect materials | $ | 2,452 |
Compute the cost of goods manufactured.
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