Please do not give solution in image format thanku Complete this question by entering your answers in the tabs below.Required APrepare a traditional income statement.Total costsRequired BComplete this question by entering your answers in the tabs below.Required A Required BCostsTraditional Income StatementPrepare an activity-based income statement.UnitBatchProduct and customer sustainingCapacity sustainingTotal costsActivity Based Income StatementUnusedResourceCapacityResourcesUsed(Required AResourcesSupplied Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,660,000. Information regardingresources for the month follows.Parts managementEnergyQuality inspectionsLong-term laborShort-term laboriSetupsMaterialsDepreciationMarketingCustomer service.AdministrativeResourcesUsed$ 60,000102,00087,00047,00039,000140,000310,000120,000141,00016,000102,000ResourcesSupplied$ 71,000102,000103,00070,00057,000230,000310,000230,000166,00038,000149,000In addition, Leidenheimer spent $45,000 on 50 engineering changes with a cost-driver rate of $900 and $62,400 on 8 outsidecontracts with a cost driver rate of $7,800.Required:Management has requested that you do the following:a. Prepare a traditional income statement.b. Prepare an activity-based income statement.

Income statement can be prepared using different methods: A. Traditional income method B. Activity…

resources for the month follows. Parts management Energy Quality inspections Long-term labor Short-term labor Setups Materials Depreciation Marketing Customer service. Administrative Resources Used $ 60,000 102,000 87,000 47,000 39,000 140,000 310,000 120,000 141,000 16,000 102,000 Resources Supplied $ 71,000 102,000 103,000 70,000 57,000 230,000 310,000 230,000 166,000 38,000 149,000 In addition, Leidenheimer spent $45,000 on 50 engineering changes with a cost-driver rate of $900 and $62,400 on 8 outside contracts with a cost driver rate of $7,800. Required: Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.

resources for the month follows. Parts management Energy Quality inspections Long-term labor Short-term labor Setups Materials Depreciation Marketing Customer service. Administrative Resources Used $ 60,000 102,000 87,000 47,000 39,000 140,000 310,000 120,000 141,000 16,000 102,000 Resources Supplied $ 71,000 102,000 103,000 70,000 57,000 230,000 310,000 230,000 166,000 38,000 149,000 In addition, Leidenheimer spent $45,000 on 50 engineering changes with a cost-driver rate of $900 and $62,400 on 8 outside contracts with a cost driver rate of $7,800. Required: Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

See similar textbooks

Similar questions

Tristion Inc. has two production departments, and estimated the following information for the 2022 fiscal year Assembly Dept. Testing Dept. Overhead $1,496,250 $365,625 Direct labour hours 356,250 81,250 Machine hours 80,000 162,500 Currently, the company uses departmental rates to assign overhead costs. Overhead costs are assigned on the basis of direct labour hours for the Assembly Department and machine hours for the Testing Department. For September, the company reported the following actual data: Assembly Dept. Testing Dept. Overhead $107,560 $34,340 Direct labour hours 28,600 6,770 Machine hours 5,700 13,520 Required (A) What are the predetermined overhead rates for each department? (B) Assume that Job R777 used 4 direct labour hours in the Assembly Department and 3 machine hours in the Testing Department. Compute the overhead assigned to Job R777. (C) How much overhead was applied in the month of September? (D)…
Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,670,000. Information regarding resources for the month follows. Resources Used Resources Supplied Parts management $ 62,000 $ 74,000 Energy 102,000 102,000 Quality inspections 92,000 103,000 Long-term labor 49,000 73,000 Short-term labor 45,000 54,000 Setups 139,000 230,000 Materials 310,000 310,000 Depreciation 120,000 230,000 Marketing 142,000 162,000 Customer service 21,000 41,000 Administrative 115,000 135,000 In addition, Leidenheimer spent $75,000 on 50 engineering changes with a cost-driver rate of $1,500 and $60,000 on 8 outside contracts with a cost driver rate of $7,500. Required: Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement. Prepare a…
Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,620,000. Information regarding resources for the month follows. Resources Used Resources Supplied Parts management $ 58,000 $ 73,000 Energy 109,000 109,000 Quality inspections 94,000 103,000 Long-term labor 55,000 69,000 Short-term labor 39,000 58,000 Setups 143,000 220,000 Materials 320,000 320,000 Depreciation 120,000 220,000 Marketing 131,000 168,000 Customer service 24,000 41,000 Administrative 102,000 132,000 In addition, Leidenheimer spent $65,000 on 50 engineering changes with a cost-driver rate of $1,300 and $56,000 on 8 outside contracts with a cost driver rate of $7,000. Required: Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement. Please answer…
Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,730,000. Information regarding 3 resources for the month follows. Resources Resources Supplied $ 69,000 105,000 106,000 65,000 54,000 Used Parts management $ 57,000 Energy Quality inspections Long-term labor Short-term labor 105,000 86,000 52,000 42,000 143,000 320,000 130,000 139,000 16,000 101,000 Setups Materials 220,000 320,000 220,000 163,000 45,000 143,000 Depreciation Marketing Customer service Administrative In addition, Leidenheimer spent $45,000 on 50 engineering changes with a cost-driver rate of $900 and $59,200 on 8 outside contracts with a cost driver rate of $7,400. Required: Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.
ACC Inc is working on calculating cost information for September. The beginning and ending inventories for the month of September are: 1-Sep 9/31/2023 Direct Materials $82,000 $77,000 Work in Process $121,000 $135,000 Finished Goods $58,000 $45,000 Production data for the month of September follows: Direct labor $175,500 Manufacturing overhead $185,500 Direct materials purchased $153,000 Using the above information answer the following questions: 1. What was the amount of direct materials added to production during the month? 2. What was the total amount of manufacturing cost added to production during the month? 3. What was the amount of cost of goods manufactured? 4. What was the amount of cost of goods sold?
The following data from the just completed year are taken from the accounting records of KentonCompany: Sales $ 975,000Direct labor cost $ 165,000Raw material purchases $ 229,000Selling expense $ 48,750Administrative expenses $ 146,250Manufacturing overhead applied to work in process $ 180,000Actual manufacturing overhead costs $ 175,050Inventories: Beginning EndingRaw materials $ 18,000 $ 17,500Work in process $ 20,000 $ 14,750Finished goods $ 9,000 $ 11,000 Required: 1.Prepare a schedule of cost of goods manufactured. Assume all raw materials used in productionwere direct materials.2. Prepare a schedule of cost of goods sold. Assume that the company’s underapplied or overappliedoverhead is closed to Cost of Goods Sold 3. Prepare an income statement.
The following data from the just completed year are taken from the accounting records of KentonCompany:Sales $ 975,000Direct labor cost $ 165,000Raw material purchases $ 229,000Selling expense $ 48,750Administrative expenses $ 146,250Manufacturing overhead applied to work in process $ 180,000Actual manufacturing overhead costs $ 175,050Inventories: Beginning EndingRaw materials $ 18,000 $ 17,500Work in process $ 20,000 $ 14,750Finished goods $ 9,000 $ 11,000Required:1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in productionwere direct materials.
Model Magic Manufacturing reported the following year-end balances: Beginning work in process inventory, $35,000; beginning raw materials inventory, $18,000; ending work in process inventory, $38,000; ending raw materials inventory, $15,000; raw materials purchased, $510,000; direct labor, $180,000; and manufacturing overhead, $75,000. What is the amount of total work in process for Model Magic for the current year? $513,000. $768,000. $803,000. $765,000.
Goldenrod Company makes artificial flowers and reports the following data for the month: Purchases of materials, on account $ 51,000Materials requisitions: Direct materials 42,300 Indirect materials 500Labor incurred (not yet paid): Direct labor 20,300 Indirect labor 1,340Journalize the entries relating to materials and labor.
Huxtable charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of machine hours. The following data pertain to the current year: Budgeted manufacturing overhead: $430,000 Actual manufacturing overhead: $440,000 Budgeted machine hours: 20,000 Actual machine hours: 16,000 Overhead applied to production totaled: Select one: a. $352,000 b. $384,000 c. $550,000 d. $600,000 e. some other amount
Umdloti Ltd, which manufactures liquid hand soap, commenced operations on 01 November 2021. Standard production for a typical month is expected to be 160 000 bottles. During November 2021 the company manufactured 170 000 bottles of hand soap. On 30 November 2021 there were 46 000 bottles of hand soap in inventory. Manufacturing and commercial costs during November 2021 were as follows: Direct materialsDirect labourVariable manufacturing overheads Variable marketing costsFixed administration costsFixed manufacturing overheadsR212 500 R680 000 R37 400 R135 160 R84 320 R113 900 The hand soap was sold at R12 per bottle during November 2021. During December 2021, Umdloti Ltd decided to increase the selling price by 10% because the fixed manufacturing costs increased by R27 100 and the variable marketing costs increased by R0.11 per unit sold with effect from 01 December 2021. The company manufactured 150 000 bottles of hand soap during December 2021. There were 27 000 bottles of hand soap…
Company XYZ has raw materials at the beginning of August of OMR200,000. During August, the company purchased additional raw materials of OMR30,000. During August also, the company used OMR180,000 raw materials; OMR80,000 directly on the production process and OMR100,000 related to maintenance of administrative cars. How much balance in the raw materials by the end of August? Select one: O a. OMRS0,000 Ob. OMR80,000 Oc.None of the given answers O d. OMR150,000 e. OMR230,000