Question
Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture. Required: 1. Classify the following manufacturing costs of
Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture. |
Required: |
1. | Classify the following manufacturing costs of Business Solutions by behavior and traceability. |
Product Costs | Cost by Behavior | Cost by Traceability |
1. Monthly flat fee to clean workshop | (Click to select)FixedVariable | (Click to select)IndirectDirect |
2. Laminate coverings for desktops | (Click to select)VariableFixed | (Click to select)IndirectDirect |
3. Taxes on assembly workshop | (Click to select)VariableFixed | (Click to select)IndirectDirect |
4. Glue to assemble workstation component parts | (Click to select)VariableFixed | (Click to select)DirectIndirect |
5. Wages of desk assembler | (Click to select)VariableFixed | (Click to select)IndirectDirect |
6. Electricity for workshop | (Click to select)FixedVariable | (Click to select)DirectIndirect |
7. Depreciation on tools | (Click to select)VariableFixed | (Click to select)DirectIndirect |
Direct materials: $2,200 |
Factory overhead: $540 |
Direct labor: $1,100 |
Beginning goods in process: none (December 31, 2011) |
Ending goods in process: $510 (January 31, 2012) |
Beginning finished goods inventory: none (December 31, 2011) |
Ending finished goods inventory: $310 (January 31, 2012) |
2. | Assume the above manufacturing costs. Prepare a manufacturing statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) |
Business Solutions | |
Manufacturing Statement | |
For Month Ended January 31, 2012 | |
(Click to select)Direct laborDirect materialsAdd: Goods in process, December 31, 2011Factory overhead costsLess: Goods in process, January 31, 2012 | $ |
(Click to select)Add: Goods in process, December 31, 2011Direct laborFactory overhead costsDirect materialsLess: Goods in process, January 31, 2012 | |
(Click to select)Direct laborFactory overhead costsDirect materialsLess: Goods in process, January 31, 2012Add: Goods in process, December 31, 2011 | |
Total manufacturing costs | |
(Click to select)Direct laborCost of goods manufacturedAdd: Goods in process, December 31, 2011Factory overhead costsLess: Goods in process, January 31, 2012 | |
Total cost of goods in process | |
(Click to select)Add: Goods in process, December 31, 2011Cost of goods manufacturedDirect laborLess: Goods in process, January 31, 2012Factory overhead costs | |
(Click to select)Less: Goods in process, January 31, 2012Factory overhead costsCost of goods manufacturedAdd: Goods in process, December 31, 2011Direct labor | $ |
3. | Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) |
Business Solutions | |
Partial Income Statement | |
For Month Ended January 31, 2012 | |
(Click to select)Less: Finished goods inventory, January 31, 2012Cost of goods manufacturedFinished goods inventory, December 31, 2011Factory overhead costsGoods available for sale | $ |
(Click to select)Finished goods inventory, December 31, 2011Less: Finished goods inventory, January 31, 2012Goods available for saleFactory overhead costsCost of goods manufactured | |
(Click to select)Cost of goods manufacturedFactory overhead costsFinished goods inventory, December 31, 2011Goods available for saleDirect labor | |
(Click to select)Finished goods inventory, December 31, 2011Cost of goods manufacturedLess: Finished goods inventory, January 31, 2012Direct laborFactory overhead costs | |
Cost of goods sold | $ |
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