[The following information applies to the questions displayed below.] Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $500 each. Costs 1. Plastic for casing-$17,000 2. Wages of assembly workers-$82,000 3. Property taxes on factory-$5,000 4. Accounting staff salaries-$35,000 5. Drum stands (1,000 stands purchased)-$26,000 6. Rent cost of equipment for sales staff-$10,000 7. Upper management salaries-$125,000 8. Annual flat fee for factory maintenance service-$10,000 9. Sales commissions-$15 per unit 10. Machinery depreciation, straight-line-$40,000

[The following information applies to the questions displayed below.] Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $500 each. Costs 1. Plastic for casing-$17,000 2. Wages of assembly workers-$82,000 3. Property taxes on factory-$5,000 4. Accounting staff salaries-$35,000 5. Drum stands (1,000 stands purchased)-$26,000 6. Rent cost of equipment for sales staff-$10,000 7. Upper management salaries-$125,000 8. Annual flat fee for factory maintenance service-$10,000 9. Sales commissions-$15 per unit 10. Machinery depreciation, straight-line-$40,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...

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Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $510 each. Costs 1. Plastic for casing—$17,000 2. Wages of assembly workers—$86,000 3. Property taxes on factory—$6,000 4. Accounting staff salaries—$36,000 5. Drum stands (1,000 stands purchased)—$31,000 6. Rent cost of equipment for sales staff—$48,000 7. Upper management salaries—$170,000 8. Annual flat fee for factory maintenance service—$13,000 9. Sales commissions—$20 per unit 10. Machinery depreciation, straight-line—$45,000 2. Compute the manufacturing cost per drum set. TrueBeat Calculation of Manufacturing Cost per Drum Set Item Total cost Per unit cost Variable production costs Total variable production costs Fixed production costs Total fixed production costs Total production cost
Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $500 each. Costs 1. Plastic for casing-$17,000 2. Wages of assembly workers-$82,000 3. Property taxes on factory-$5,000 4. Accounting staff salaries-$35,000 5. Drum stands (1,000 stands purchased)-$26,000 6. Rent cost of equipment for sales staff-$10,000 7. Upper management salaries-$125,000 8. Annual flat fee for factory maintenance service-$10,000 9. Sales commissions-$15 per unit 10. Machinery depreciation, straight-line-$40,000
Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $510 each. Costs 1. Plastic for casing—$17,000 2. Wages of assembly workers—$86,000 3. Property taxes on factory—$6,000 4. Accounting staff salaries—$36,000 5. Drum stands (1,000 stands purchased)—$31,000 6. Rent cost of equipment for sales staff—$48,000 7. Upper management salaries—$170,000 8. Annual flat fee for factory maintenance service—$13,000 9. Sales commissions—$20 per unit 10. Machinery depreciation, straight-line—$45,000 Required:1. Classify each cost and its amount as (a) either variable or fixed and (b) either product or period. (The first cost is completed as an example.) Cost by Behavior Cost by Function Costs Variable Fixed Product Period 1. Plastic for casing $17,000 $17,000 2. Wages of assembly workers 3. Property taxes on factory 4. Accounting…
[The following information applies to the questions displayed below] Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat. Costs 1. Plastic for casing-$21,000 2. Wages of assembly workers-$86,000 3. Property taxes on factory-$7,000 4. Office accounting salaries-$42,000 5. Drum stands-$27,000 6. Rent cost of office for accountants-$12,000 7. Office management salaries-$180,000 8. Annual fee for factory maintenance-$21,000 9. Sales commissions-$15,000 10. Factory machinery depreciation, straight-line-$40,000
Example Ltd is a manufacturer. It produced 2,000 units in April. The following cost information is available: Advertising costs: $6,000 per month Depreciation on factory equipment: $3,000 per month Factory supervisor salary: $20,000 per month Metal used in the product: $10 per unit Research and development: $8,000 per month Wages of manufacturing equipment operators: $8 per unit Assume any materials used in production is direct material. What is the total conversion costs for Example Ltd in April? 39,000 36,000 20,000 14,000
The following costs result from the production and sale of 4,450 drum sets manufactured by Tight Drums Company for the year ended December 31. The drum sets sell for $295 each. Variable costs Plastic for casing $ 115,700 Wages of assembly workers 404,950 Drum stands 155,750 Sales commissions 106,800 Fixed costs Taxes on factory 14,500 Factory maintenance 29,000 Factory machinery depreciation 89,000 Lease of equipment for sales staff 29,000 Accounting staff salaries 79,000 Administrative salaries 159,000 Required:1. Prepare a contribution margin income statement for the year.2. Compute contribution margin per unit and contribution margin ratio.3. For each dollar of sales, how much is left to cover fixed costs and contribute to income?
The Hobbes Company manufactures stuffed toy animals and had the following cost information for the production run of 120,000 units: (a) rent on a billboard $1,800, (b) rent on the factory $16,000, (c) cloth and thread $34,800, (d) factory worker s compensation $38,600, (e) administrative staff compensation $18,000. If the company sold 80,000 units, what total dollar amount would it report as inventory (as needed, round your final answer to the nearest whole dollar)?
Wolley Inc. uses part A68 in one of its products. The company's Accounting Department reports the following annual costs of producing the 10,000 units of the part. Total Cost Direct materials $ 95,000 Direct labor $ 60,000 Variable manufacturing overhead $ 25,000 Variable selling & administrative expense $ 5,000 Fixed manufacturing overhead $ 15,000 An outside supplier has offered to make the part and sell it to the company for $23 each. If the outside supplier's offer were accepted, $3,000 of fixed manufacturing overhead would be avoided. In addition, the capacity used to produce part A68 could be used to make an additional income of $45,000 per year from producing a different product. Required: Based on this information, would Wolley be financially better off to continue making the A68 or to buy them from the outside supplier?
Pretty Pillows, Mfg., manufactures silk throw pillows. Last month the company produced 3,890 pillows.The following incurred the following costs: Production facility utilities, $1,600; Depreciation on production equipment, $650; Indirect materials, $400; Direct materials, $5,300; Indirect labor, $1,000; Direct labor, $3,500; Sales commissions, $4,000; President's salary, $8,000; Insurance on production facility, $1,000; Advertising expense, $900; Rent on production facility, $6,000; Rent on sales office, $4,000; Legal expense, $600. WIP (beginning balance) $3,200 WIP (ending balance) $2,400 Calculate the cost of the pillows manufactured.
Pretty Pillows, Mfg., manufactures silk throw pillows. Last month the company produced 3,890 pillows.The following incurred the following costs: Production facility utilities, $1,600; Depreciation on production equipment, $650; Indirect materials, $400; Direct materials, $5,300; Indirect labor, $1,000; Direct labor, $3,500; Sales commissions, $4,000; President's salary, $8,000; Insurance on production facility, $1,000; Advertising expense, $900; Rent on production facility, $6,000; Rent on sales office, $4,000; Legal expense, $600. WIP (beginning balance) $3,200 WIP (ending balance) $2,400 Determine the PRIME COST of manufacturing the pillows.
Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs: Rent on manufacturing facility $ 250,000 Office manager's salary 150,000 Wages of factory machine operators 110,000 Depreciation on manufacturing equipment 50,000 Insurance and taxes on selling and administrative offices 30,000 Direct materials purchased and used 170,000 Based on the above information, the amount of period costs shown on Steuben's income statement is: Multiple Choice $150,000. $180,000. $430,000. S 30,000.
Snowy Mountain manufactures snowboards. Its cost of making 19,000 bindings is as follows Direct material $22000 Direct Labor $81000 Variable Manufacturing overhead $44000 Fixed Manufacturing overhead $81000 Total manufacturing costs $228000 Cost/per ($228000/19000) $12.00 The data from the table are as follows: Suppose an outside supplier will sell bindings to Snowy Mountain for $15 each. Snowy Mountain would pay $2.00 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost $0.50 of per binding. Requirements 1. Snowy Mountain’s accountants predict that purchasing the bindings from an outside supplier will enable the company to avoid $1,900 of fixed overhead. Prepare an analysis to show whether the company should make or buy the bindings. 2. The facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute $3,100 to profit. Total fixed costs will be the same…