ACCT 212 Lecture Notes - Lecture 6: Break Even, Vidgital, Income Statement

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amramr328

25 Mar 2023

School

Liberty University

Department

Accounting

Course

ACCT 212

Professor

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Document Summary

Decision making (what price should i sell for) What is direct materials? material that goes into final product (steel) (rubber) (plastic) on a car. What is direct labor? a janitor) labor that can be traced to units of production (labor hours/wages) (not. What is manufacturing overhead? everything that isn"t dm or dl (glue) (property tax) (tent) (utilities) Sg&a costs to secure orders and get products to customers (advertising) Costs associated with general management of the organization (ceo. What is a variable cost? a cost that changes with activity (units) (hours) What is a fixed a cost that remains constant. What is a cost object? any product, job order, division or anything to which you assign a cost. Multiple product lines (tents, hiking packs, sleeping bags) Why adding costs to a cost object? track profitability (how is the sleeping bag performing) What"s a direct cost? traceable to a cost object. What"s an indirect cost? not traceable to a cost object.

Related Questions

Kubin Companyâs relevant range of production is 21,000 to 25,000 units. When it produces and sells 23,000 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$	8.10
Direct labor	$	5.10
Variable manufacturing overhead	$	2.60
Fixed manufacturing overhead	$	6.10
Fixed selling expense	$	4.60
Fixed administrative expense	$	3.60
Sales commissions	$	2.10
Variable administrative expense	$	1.60

2. Assume the cost object is the Manufacturing Department and that its total output is 23,000 units.

a. How much total manufacturing cost is directly traceable to the Manufacturing Department?

b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department?


2a.	Direct materials per unit
	Direct labor per unit
	Variable manufacturing overhead per unit
	Fixed manufacturing overhead per unit
	Total manufacturing cost per unit	$0.00
	Number of units sold
	Total direct costs	$0

2b.	Total indirect costs

beigemallard451

Kubin Companyâs relevant range of production is 21,000 to 25,000 units. When it produces and sells 23,000 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$	8.10
Direct labor	$	5.10
Variable manufacturing overhead	$	2.60
Fixed manufacturing overhead	$	6.10
Fixed selling expense	$	4.60
Fixed administrative expense	$	3.60
Sales commissions	$	2.10
Variable administrative expense	$	1.60

Required:

1. Assume the cost object is units of production:

a. What is the total direct manufacturing cost incurred to make 23,000 units?

b. What is the total indirect manufacturing cost incurred to make 23,000 units?


1a.	Direct materials per unit
	Direct labor per unit
	Direct manufacturing cost per unit	$0.00
	Number of units sold
	Total direct manufacturing cost	$0

1b.	Variable manufacturing overhead per unit
	Fixed manufacturing overhead per unit
	Indirect manufacturing cost per unit	$0.00
	Number of units sold
	Total indirect manufacturing cost	$0

copperguinea-pig158

Kubin Companyâs relevant range of production is 23,000 to 27,500units. When it produces and sells 25,250 units, its average costsper unit are as follows:

	Average Cost per Unit
Direct materials	$	8.30
Direct labor	$	5.30
Variable manufacturingoverhead	$	2.80
Fixed manufacturingoverhead	$	6.30
Fixed selling expense	$	4.80
Fixed administrativeexpense	$	3.80
Sales commissions	$	2.30
Variable administrativeexpense	$	1.80

Required:

1. Assume the cost object is units of production:

a. What is the total direct manufacturing cost incurred to make25,250 units?

b. What is the total indirect manufacturing cost incurred tomake 25,250 units?

2. Assume the cost object is the Manufacturing Department andthat its total output is 25,250 units.

a. How much total manufacturing cost is directly traceable tothe Manufacturing Department?

b. How much total manufacturing cost is an indirect cost thatcannot be easily traced to the Manufacturing Department?

3. Assume the cost object is the companyâs various salesrepresentatives. Furthermore, assume that the company spent $95,950of its total fixed selling expense on advertising and the remainderof the total fixed selling expense comprised the fixed portion ofthe company's sales representativesâ compensation.

a. When the company sells 25,250 units, what is the total directselling expense that can be readily traced to individual salesrepresentatives?

b. When the company sells 25,250 units, what is the totalindirect selling expense that cannot be readily traced toindividual sales representatives?

ufacturing cost incurred to make 23,000 units?


1a.	Direct materialsper unit
	Direct labor perunit
	Directmanufacturing cost per unit	$0.00
	Number of unitssold
	Total directmanufacturing cost	$0

1b.	Variablemanufacturing overhead per unit
	Fixed manufacturingoverhead per unit
	Indirectmanufacturing cost per unit	$0.00
	Number of unitssold
	Total indirectmanufacturing cost	$0


2a.	Direct materialsper unit
	Direct labor perunit
	Variablemanufacturing overhead per unit
	Fixed manufacturingoverhead per unit
	Total manufacturingcost per unit	$0.00
	Number of unitssold
	Total directcosts	$0

2b.	Total indirectcosts

	sales commissionsper unit
	number of unitssold
	total salescommission	$0
	Fixed portion ofsales representatives' compensation
	total directselling expense	$0.00

3b	Total indirectselling expense

apricotbeaver798

ACCT 212 Lecture Notes - Lecture 6: Break Even, Vidgital, Income Statement

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