Sheridan Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,600 units. Direct materials $8,145 Direct labor 25,488 Utilities 2,846 Property taxes 1,086 Indirect labor 4,887 Supervisory salaries 2,063 Maintenance 1,657 Depreciation (straight-line) 2,606 The utilities and maintenance costs are mixed costs. The fixed components of these costs are $326 and $217, respectively.

Sheridan Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,600 units. Direct materials $8,145 Direct labor 25,488 Utilities 2,846 Property taxes 1,086 Indirect labor 4,887 Supervisory salaries 2,063 Maintenance 1,657 Depreciation (straight-line) 2,606 The utilities and maintenance costs are mixed costs. The fixed components of these costs are $326 and $217, respectively.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CMA

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
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