Cotton White, Incorporated, makes specialty clothing for chefs. The company reported the following costs for the current year: Factory rent Company advertising Wages paid to sewing personnel Depreciation on salespersons' vehicles Thread Utilities for factory Cutting room supervisor's salary President's salary Premium quality cotton material Buttons Factory insurance Depreciation on sewing machines Wages paid to cutters 5. Compute the prime cost for Cotton White. 6. Compute the conversion cost for Cotton White. 7. Compute the total period cost for Cotton White. $36,000 24,600 75,200 31,300 1,110 24,800 31,500 75,500 41,200 785 Required: 1. Compute the cost of direct materials for Cotton White. 2. Compute the cost of direct labor for Cotton White. 3. Compute the cost of manufacturing overhead for Cotton White. 4. Compute the total manufacturing cost for Cotton White. 1. Direct Materials Cost 2. Direct Labor Cost 3. Manufacturing Overhead Cost 4. Total Manufacturing Cost 5. Prime Cost 6. Conversion Cost 7. Total Period Cost 19,100 6,300 51,500

Cotton White, Incorporated, makes specialty clothing for chefs. The company reported the following costs for the current year: Factory rent Company advertising Wages paid to sewing personnel Depreciation on salespersons' vehicles Thread Utilities for factory Cutting room supervisor's salary President's salary Premium quality cotton material Buttons Factory insurance Depreciation on sewing machines Wages paid to cutters 5. Compute the prime cost for Cotton White. 6. Compute the conversion cost for Cotton White. 7. Compute the total period cost for Cotton White. $36,000 24,600 75,200 31,300 1,110 24,800 31,500 75,500 41,200 785 Required: 1. Compute the cost of direct materials for Cotton White. 2. Compute the cost of direct labor for Cotton White. 3. Compute the cost of manufacturing overhead for Cotton White. 4. Compute the total manufacturing cost for Cotton White. 1. Direct Materials Cost 2. Direct Labor Cost 3. Manufacturing Overhead Cost 4. Total Manufacturing Cost 5. Prime Cost 6. Conversion Cost 7. Total Period Cost 19,100 6,300 51,500

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 1CE: Ventana Window and Wall Treatments Company provides draperies, shades, and various window...

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Ventana Window and Wall Treatments Company provides draperies, shades, and various window treatments. Ventana works with the customer to design the appropriate window treatment, places the order, and installs the finished product. Direct materials and direct labor costs are easy to trace to the jobs. Ventanas income statement for last year is as follows: Ventana wants to find a markup on cost of goods sold that will allow them to earn about the same amount of profit on each job as was earned last year. Required: 1. What is the markup on cost of goods sold (COGS) that will maintain the same profit as last year? (Round the percentage to two significant digits.) 2. A customer orders draperies and shades for a remodeling job. The job will have the following costs: What is the price that Ventana will quote given the markup percentage calculated in Requirement 1? (Round the price to the nearest dollar.) 3. What if Ventana wants to calculate a markup on direct materials cost, since it is the largest cost of doing business? What is the markup on direct materials cost that will maintain the same profit as last year? (Round the percentage to two significant digits.) What is the bid price Ventana will use for the job given in Requirement 2 if the markup percentage is calculated on the basis of direct materials cost? (Round to the nearest dollar.)
A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the service departments. The production departments are Assembly and Machining. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The building maintenance department services all departments of the company, and its costs are allocated using floor space occupied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.
Presented below are Carla Vista Company's monthly manufacturing cost data related to its personal computer products. (Assume that all raw materials used were direct materials.) (a) (b) (c) (d) Wages for assembly line workers (a) (b) Taxes on factory building Raw materials transferred to production Depreciation on manufacturing equip. (c) (d) Enter each cost item in the following table, placing an "X" under the appropriate headings. Direct Materials $967,600 X 77,880 247,800 401,200 Product Costs Direct Labor X Manufacturing Overhead X X
Skysong Company reports the following costs and expenses in May. Factory utilities Depreciation on factory equipment Depreciation on delivery trucks Indirect factory labor Indirect materials Direct materials used Factory manager's salary From the information: $17,500 14,370 4,740 56,120 91,840 157,680 9,800 Direct labor Sales salaries Property taxes on factory building Repairs to office equipment Factory repairs Advertising Office supplies used $79,080 52,420 2,850 1,550 2,280 17,100 2,960
Metlock Company reports the following costs and expenses in May. Factory utilities Depreciation on factory equipment Depreciation on delivery trucks Indirect factory labor Indirect materials Direct materials used Factory manager's salary From the information $13,300 10.870 3,340 Manufacturing overhead 42,120 69,440 118,480 7,000 Direct labor Sales salaries Property taxes on factory building Repairs to office equipment Factory repairs Advertising Office supplies used Determine the total amount of manufacturing overhead.. $59,480 39,820 2.150 1,130 1,720 12.900 2,260 su
Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2018: S 36,500 25,500 76,8০0 31,300 1,040 24,000 30,300 75,800 41,600 840 Factory rent Company advertising Wages paid to seamstresses Depreciation on salespersons' vehieles Thread Utilities for factory Cutting room supervisor's salary President's salary Premium quality cotton material Buttons Pactory insurance Depreciation on sewing machines Wages paid to cutters 18,400 6,900 50,500 Required: 1. Compute the cost of direct materials for Cotton White. 2. Compute the cost of direct labor for Cotton White. 3. Compute the cost of manufacturing overhead for Cotton White. 4. Compute the total manufacturing cost for Cotton White. 5. Compute the prime cost for Cotton White. 6. Compute the conversion cost for Cotton White. 7. Compute the total period cost for Cotton White.
The following information is available for Wonderway, Incorporated, for the current year: Factory rent Company advertising Wages paid to laborers Depreciation for president's vehicle Indirect production labor Utilities for factory Production supervisor's salary President's salary Direct materials used Sales commissions Factory insurance Depreciation on factory equipment $ 29,300 20,800 85,200 8,050 1,880 31,900 30,700 60,800 34,900 7,530 13,100 26,500 Required: 1. Calculate the direct labor cost for Wonderway. 2. Calculate the manufacturing overhead cost for Wonderway. 3. Calculate the prime cost for Wonderway. 4. Calculate the conversion cost for Wonderway. 5. Calculate the total manufacturing cost for Wonderway. 6. Calculate the period expenses for Wonderway. 4
For apparel manufacturer Abercrobmie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost: Research and development costs Depreciation on sewing machines Fabric used during production Depreciation on office equipment Advertising expenses Repairs and maintenance costs for sewing machines Salary of production quality control supervisor Utility costs for office building Sales commissions Salaries of distribution center personnel Wages of sewing machine operators Factory janitorial supplies Chief financial officer’s salary Travel costs of media relations employees Factory supervisors’ salaries Oil used to lubricate sewing machines Property taxes on factory building and equipment
Knight Company reports the following costs and expenses in May. Factory utilities Depreciation on factory equipment Depreciation on delivery trucks Indirect factory labor Indirect materials Direct materials used Factory manager's salary From the information: (b) (a) Your answer is correct. Manufacturing overhead eTextbook and Media Determine the total amount of manufacturing overhead. $15,500 12,650 3,800 48,900 80,800 137,600 Product costs Determine the total amount of product costs. Save for Later Direct labor Sales salaries Property taxes on factory building Repairs to office equipment Factory repairs Advertising 8,000 Office supplies used 170350 $69,100 46,400 2,500 1,300 2,000 15,000 2,640 Attempts: 1 of 5 used Attempts: 0 of 5 used Submit Answer
Custom Creations Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include: $ 9,800 16,900 50,700 23,900 3,400 21,900 115,600 10,100 3,100 9,700 Depreciation on sales office Depreciation on factory equipment Factory supervisor salary Sales commissions Lubricants used in factory equipment Insurance costs for factory Wages paid to maintenance workers Fabric used to upholster furniture Freight-in (on raw materials) Costs of delivery to customers Wages paid to assembly-line workers Lumber used to build product Utilities in factory Utilities in sales office Direct labor costs for Custom Creations Furniture Company totaled OA. $305,200. OB. $281,300. OC. $115,600. OD. $115.000. 115,000 82,600 54,300 26,700
Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow: Bike parts Factory machinery depreciation Factory supervisor salaries Factory direct labor Factory supplies Factory property tax Advertising cost Administrative salaries Administrative-related depreciation Total expected costs $ 338,800 58,500 142,500 235,790 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.41 per hour. 2. Determine the amount of applied overhead if 17,900 actual hours are worked in the upcoming year. Required 1 40,400 33,750 22,500 54,500 25,700 $ 952,440 Complete this question by entering your answers in the tabs below.
Listed here are product costs for production of soccer balls. Classify each cost as either direct or indirect. Product Cost 1. Coolants for machinery 2. Wages of product assembly workers 3. Annual flat fee paid for factory security 4. Taxes on factory 5. Machinery depreciation (straight-line) 6. Rubber bladder interior for balls 7. Factory building rent 8. Wages of factory machine operators 9. Wages of factory maintenance workers 10. Factory supervisor salary Direct or Indirect