Question #1:

A Company reports the following costs and expenses in August.

Factory utilities$16,500Direct labor$79,100

Depreciation on factorySales salaries51,400

equipment12,650Property taxes on factory

Depreciation on delivery trucks3,800building2,500

Indirect factory labor48,900Repairs to office equipment1,300

Indirect materials70,800Factory repairs2,000

Direct materials used157,600Advertising23,000

Factory manager's salary8,000Office supplies used2,640

Instructions

From the information, determine the total amount of:

(a)Manufacturing overhead.

(b)Product costs.

(c)Period costs.

Question #2:

A Corporation incurred the following costs while manufacturing its product.

Materials used in product$ 90,000Advertising expense$45,000

Depreciation on plant60,000Property taxes on plant19,000

Property taxes on store7,500Delivery expense21,000

Labor costs of assembly-line workers110,000Sales commissions35,000

Factory supplies used23,000Salaries paid to sales clerks50,000

Work-in-process inventory was $22,000 at January 1 and $15,500 at December 31. Finished goods inventory was $65,000 at January 1 and $55,600 at December 31.

Instructions

(a) formal schedule of the Cost of Goods Manufactured.

(b)Compute cost of goods sold.

Question #3:M&H, Inc. allocates overhead at $9 per direct labor hour. Job X260 required 4 boxes of direct materials at a cost of $30 per box and took employees 10 hours to complete. Employees earn $15 per hour.

Instructions

Compute the total cost of Job X260.

Question #4:

A Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year was 54,300. The actual factory overhead for the year was $1,375,000.

a) Determine the total factory overhead amount applied.

b) Calculate the over or under applied amount for the year.

c) Prepare the journal entry.

Question #5

Below are the production data for Department A1 for the first month of operation:

Costs charged to Department A1:

Materials$12,000

Labor2,800

Overhead12,400

During the first month of operations, 4,000 units were started into production; 3,500 units were transferred out; and the remaining 500 units are 100% completed with respect to materials and 60% complete with respect to conversion costs.

Instructions

Compute the following:

(a)Unit materials cost.

(b)Equivalent units of conversion costs.

(c)Unit conversion cost.

(d)Total cost of 500 units in process at end of month.

(e)Total cost of 3,500 units transferred out.

Question #6:

Birds and Such, Inc. manufactures birdhouses and uses an activity-based costing system. The following information is provided for the month of May:

Activity

Estimated Indirect Activity Costs

Allocation Base

Estimated Quantity of Allocation Base

Materials handling

$ 3,500

Number of parts

5,000 parts

Assembling

$12,000

Number of parts

5,000 parts

Packaging

$5,750

Number of birdhouses

1,250 birdhouses

Each breadbox consists of 4 parts, and the direct materials cost per birdhouse is $7.00.

What is the cost of materials handling and assembling per breadbox?

Question #7:

The Trojan Company sells a product for $120 per unit. The variable cost is $40 per unit,

and fixed costs are $270,000. Determine the

(a) break-even point in sales units, and

(b) break-even points in sales units if the company desires a target profit of $36,000.

Question #8:

Active Kids manufactures Children's bicycles. It has fixed costs of $5,360,000.Active Kid's sales mix and contribution margin per unit are shown as follows:

Sales MixContribution Margin

Basic20%$120

Cruiser55%$60

Trail25%$40

Instructions

Compute the number of each type of bicycle that the company would need to sell in order to break even under this product mix.