Bennett's Manufacturing started business on 1 JUNE 2016, and incurred the following costs during its first two years. Year ending 31 March Direct materials Direct labour Variable overheads Fixed costs Production each year (units) Sales each year (units) Selling price for 2016 $50 Selling price for 2017 S60 20,000 and 16,000 17,000 and 16,000 2016 S 2017 $ 120,000 80,900 80,000 55,000 50,000 35,000 60,000 50,600 Required: A. Prepare a statement showing the gross profit for each of the three years if the company used: The marginal costing approach to valuing inventory: The absorption costing approach to valuing inventory. •

Bennett's Manufacturing started business on 1 JUNE 2016, and incurred the following costs during its first two years. Year ending 31 March Direct materials Direct labour Variable overheads Fixed costs Production each year (units) Sales each year (units) Selling price for 2016 $50 Selling price for 2017 S60 20,000 and 16,000 17,000 and 16,000 2016 S 2017 $ 120,000 80,900 80,000 55,000 50,000 35,000 60,000 50,600 Required: A. Prepare a statement showing the gross profit for each of the three years if the company used: The marginal costing approach to valuing inventory: The absorption costing approach to valuing inventory. •

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...

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Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?
X Co. Ltd. produces three types of products A, B and C and keeps accounts for Process I, Process II and Process III. Following statements show the relative importance of each type of product in each process : Process I Points Process II Points Process III Points Product A Product B 2 4 2 4 2 1 Product C 8 3 2 Costs for each process for March, 2019 are as follows : Process I Process II $ 9,000 3,000 5,100 Process III $ 9,000 1,800 2,400 Total Materials Labour Overheads 12,000 4,200 3,000 $ 30,000 9,000 10,500 19,200 17,100 13,200 49,500 Production during the period : Product A 600 units ; Product B 300 units ; Product C 900 units. You are required to- (a) prepare a statement showing weighted average production for each process and (b) compute the cost for each type of product.
Synergy Manufacturing Co. Ltd. manufactures Product A and Product B. The following information is available for March 2020 Product A Product B Production (units) 5,000 3,500 Sales (units) 4,600 3,200 Opening inventory (units) Financial data: Product A Product B Unit selling price £ 180.00 £ 150.00 Unit cost: direct materials £ 30.00 £ 24.00 direct labour £ 36.00 £ 24.00 variable production overheads £ 24.00 £ 16.00 fixed production overheads £ 60.00 £ 40.00 variable selling overheads £ 2.00 £ 2.00 Fixed production overheads for the period were £210,000 and fixed administration overheads were £54,000. Please note that fixed production overheads and fixed administration overheads are shared based on the number of production units for Product A and Product B. Required: Based on the details provided in the table below, prepare and interpret accurate income statements for the company using a range of management accounting techniques, such as marginal and absorption costs.
The following data are provided for Matibag Corporation: a. Sales: Sales through June 30, 2019, the first 6 months of the current year, are 24,000 units. Expected sales for the full year are 60,000 units. Actual sales in units for May and June and estimated unit sales for the next 4 months are as follows: Direct Materials 101 211 242 b. Direct Materials: At each month end, Villanueva wants to have sufficient materials on hand to produce the next month's estimated sales. Data regarding materials are as follows: c. Direct Labor: July August September October May June Process Forming Assembly Finishing 4,000 4,000 5,000 6,000 7,000 7,000 Units of Material Cost per Unit Required 6 4 2 Php 0.40 3.60 1.20 Hours per Unit 80 2.00 0.25 Units in Inventory, June 30, 2019 Hourly Labor Rate P 8.00 5.50 6.00 35,000 32,000 14,000
The following cost incurred by Lucky corporation for October 2019 were as follows: Direct Materials used, P20,000 Indirect materials used, P1,000 Direct labor, P9,000 Indirect labor, P5,000 Other factory cost, P5,000 Selling expenses,P10,000 Administrative expenses, P12,000 Question: How much is the total product cost? a. P62,000 b. P50,000 c. P29,000 d. P40,000 Plz answer fast without plagiarism and don't copy answer plz
In respect of a factory the following figures have been obtained for the year 2018: Particulars Rs. Cost of Materials 12,00,000 Factory Overheads 6,00,000 Selling Overheads 4,48,000 Distribution Overheads 2,80,000 Direct Wages 10,00,000 Administrative Overheads 6,72,000 Profit 8,40,000 A work order has been executed in 2019 and the following expenses have been incurred: Materials Rs. 16,000 and Wages Rs.10,000 Assuming that on 2019 the rate of factory overheads increased by 20%, distribution overheads have gone down by 10% and selling and administrative overheads have each gone up by 12.5%. At what price should the product be sold as to earn the same rate of profit on the selling price as in 2018? Factory overheads are based on direct wages while all other overheads are based on factory cost.
Cost incurred: Direct labor cost Rs. 70,000 Purchases of raw materials 165,000 Manufacturing overhead 85,000 Selling & administrative expenses 142,000 Sales 450,000 Beginning of End of the Year the year Inventories: Raw materials Rs. 8,000 13,000 Work in process 16,000 21,000 Finished goods 40,000 60,000 Prepare a schedule of cost of goods manufactured. Prepare the cost of goods sold section and Income statement of Fast company for the year 2019.
Q1 Mr.Fahim furnishes the following data relating to the manufacture of a standard product during the month of April 2020. Raw materials consumed OMR 287000 Direct labour charges OMR 65400 Machine hour worked 18500 Machine hour rate OMR 3.2 Administrative overheads 30% on works cost Selling and distribution expenses OMR 0.60 per unit Units Produced 18500 Units Units Sold 16000 at OMR 70.5 per unit You are required to prepare a cost sheet from the above, showing: (a)The cost of production per unit. (b) Profit per unit sold and (c) Profit for the period.
Manufacturing costs for Davenport Company during 2018 were as follows: Beginning Finished Goods, January 1 Beginning Raw Materials, January 1 Beginning Work in Process, January 1 Direct Labor for the current year Ending Finished Goods, December 31 Ending Raw Materials, December 31 Ending Work in Process, December 31 Material Purchases for the current year (including $15,000 of indirect material) $ 24,100 35,500 110,300 275,300 22,400 40,250 120,600 304,200 Note: The pre-determined overhead rate is 0.75 (75%) of direct labor cost. Required: 1. Prepare a Cost of Goods Manufactured report. 2. Prepare a Partial Income Statement if sales revenue was $1,250,000 and operating expenses were $210,000 for the current year.
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales Information for this year follows. Manufacturing costs Direct materials 24 24 30 per unit 50 per unit Direct labor Overhead costs 20 per unit $8,800, 000 (per year) variable 24 Fixed selling and administrative costs for the year variable $ 750,000 $4,500,000 Fixed Production and sales for the year Units produced 110,000 units 80, 000 units 360 per unit Units sold Sales price per unit 1. Prepare an Income statement for the year using varlable costing. 2. Prepare an Income statement for the year using absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Variable Costing Income Statement
The following cost information of Sino Iban Bhd for the months ended 31st January and 28th Feb 2017 are as follows: January February Sales (units) 40,000 45,000 RM RM Sales revenue 2,000,000 2,250,000 Less Total Cost Direct materials 400,000 450,000 Indirect materials 120,000 120,000 Direct labour 480,000 540,000 Indirect labour 25,000 25,000 Rent 15,000 15,000 Depreciation 12,000 12,000 Inspection costs 9,000 9,000 Electricity 80,000 90,000 Supervisors’ salaries __13,000 __14,000 1,154,000 1,275,000 Profit/Loss 846,000 1,050 000 Prepare a budget in the same format for the month ended 31st March 2016 assuming that the factory will manufacture and sell 50,000 units during the month. (7 marks)
Practice: The following data are taken from the accounting records of Gregory Mfg. Co.: 2019 2018 Ending inventories: Materials $ 100,000 $80,000 Work in Process $64,000 $56,000 Finished Goods $140,000 $170,000 Manufacturing goods: Direct materials used $657,000 Direct labor costs charged to production $270,000 Manufacturing Overhead $378,000 Show All Calculations: Outline a schedule of cost of goods manufactured for 2019 in good form The company generally prices products adding 20% to the cost of goods sold. Determine the total revenue the company would have generated in 2019.