QUESTION 11:

A factory manufactures jelly. The jars of jelly are packed six to a box, and the boxes are sold to grocery stores. The following types of costs were incurred in the factory:

Required:

Classify each of the costs as direct materials, direct labour, or manufacturing overhead.

Jars
Sugar
Fruit
Pectin (thickener used in jams and jellies)
Boxes
Depreciation on the factory building
Cooking equipment operators' wages
Filling equipment operators' wages
Packers' wages
Janitors' wages
Receptionist's wages
Telephone
Utilities
Rental of Santa Claus suit (for the Christmas party for factory employees' children)
Supervisory labour salaries
Insurance on factory building
Depreciation on factory equipment
Oil to lubricate filling equipment

QUESTION 12:

SureShot Company manufactures digital cameras. In January, SureShot produced 6,750 cameras with the following costs:

Direct materials	$1,000,000
Direct labour	200,000
Manufacturing overhead	800,000

There were no beginning or ending inventories of WIP.

Required:

1. What was total product cost in January? $_________

2. What was product cost per unit in January? Round your answer to the nearest cent. $______per unit

QUESTION 13:

SureShot Company manufactures digital cameras. In January, SureShot produced 7,500 cameras with the following costs:

Direct materials	$600,000
Direct labour	184,000
Manufacturing overhead	736,000

There were no beginning or ending inventories of WIP.

Required:

If required, round your cost per unit answers to the nearest cent.

1. What was the total prime cost in January? $_______

2. What was the prime cost per unit in January? $__________per unit

3. What was the total conversion cost in January? $________________

4. What was the conversion cost per unit in January? $________________per unit

QUESTION 14:

Jasper Company provided the following information for last year:

Sales in units	280,000
Selling price	$16
Direct materials	180,000
Direct labour	505,000
Manufacturing overhead	110,000
Selling expense	477,000
Administrative expense	854,000

Last year, beginning and ending inventories of work in process and finished goods equalled zero.

Required:

1. Calculate the sales revenue for last year. $__________

Prepare an income statement for Jasper for last year. Calculate the percentage of sales for each line item on the income statement. (Note: Round percentages to the nearest tenth of a percent.)

Jasper Company Income Statement For the Last Year Amounts Percent of Sales\f\fW.W. Phillips Company Statement of Cost of Goods Manufactured For Last Year Manufacturing overhead: Total cost of product Cost of goods manufactured\fIncome Statement For One Year of Operation High End Standard Direct costs: Total direct Indirect costs: Total indirect