A partial listing of costs incurred at Falkenberg Corporationduring October appears below:
Direct materials ........................... $195,000
Utilities, factory............................ $9,000
Sales commissions ...................... $75,000
Adminnistrative salaries .............. $113,000
Indirect labor ................................ $30,000
Advertising ................................... $119,000
Depreciation of production equipment...... $28,000
Direct labor ................................... $105,000
Depreciation of administrative equipment... $44,000
Required:
a. What is the total amount of product cost listed above? Showwork.
b. What is the total amount of period cost listed above? Showwork.
A partial listing of costs incurred at Falkenberg Corporationduring October appears below:
Direct materials ........................... $195,000
Utilities, factory............................ $9,000
Sales commissions ...................... $75,000
Adminnistrative salaries .............. $113,000
Indirect labor ................................ $30,000
Advertising ................................... $119,000
Depreciation of production equipment...... $28,000
Direct labor ................................... $105,000
Depreciation of administrative equipment... $44,000
Required:
a. What is the total amount of product cost listed above? Showwork.
b. What is the total amount of period cost listed above? Showwork.
Related questions
Marcelino Co.'s March 31 inventory of raw materials is $82,000. Raw materials purchases in April are $600,000, and factory payroll cost in April is $390,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $29,000; factory rent, $34,000; factory utilities, $21,000; and factory equipment depreciation, $61,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $670,000 cash in April. Costs of the three jobs worked on in April follow.
| Job 306 | Job 307 | Job 308 | ||||||||||
| Balances on March 31 | ||||||||||||
| Direct materials | $ | 28,000 | $ | 39,000 | ||||||||
| Direct labor | 24,000 | 18,000 | ||||||||||
| Applied overhead | 12,000 | 9,000 | ||||||||||
| Costs during April | ||||||||||||
| Direct materials | 133,000 | 220,000 | $ | 115,000 | ||||||||
| Direct labor | 105,000 | 154,000 | 102,000 | |||||||||
| Applied overhead | ? | ? | ? | |||||||||
| Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
Required:
1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31).
2. Prepare journal entries for the month of April to record the below transactions. (Hint, there are 13 steps)
Materials purchases (on credit).
Direct materials used in production.
Direct labor paid and assigned to Work in Process Inventory.
Indirect labor paid and assigned to Factory Overhead.
Overhead costs applied to Work in Process Inventory.
Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
Transfer of Jobs 306 and 307 to Finished Goods Inventory.
Cost of goods sold for Job 306.
Revenue from the sale of Job 306.
Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporation is a private corporation formed for the purpose ofproviding the products and the services needed to irrigate farms,parks, commercial products, and private homes. It has a centrallylocated factory in a U.S. city that manufactures the products itmarkets to retail outlets across the nation. It also maintains adivision that provides installation and warranty servicing in sixmetropolitan areas. The month of November has just ended andWaterways needs to generate a cost of goods manufactured and costof goods sold for its income statement for the month. The followingdata is provided:
Accounts Receivable | $ 290,000 |
Advertising Expense | 52,000 |
Cash | 255,000 |
Depreciation â Factory Equipment | 17,500 |
Depreciation â Office Equipment | 2,900 |
Direct Labor | 44,000 |
Factory Supplies Used | 16,300 |
Factory Utilities | 10,500 |
Finished Goods Inventory â November 30 | 71,800 |
Finished Goods Inventory â October 31 | 73,500 |
Indirect Labor | 45,000 |
Office Supplies Expense | 1,900 |
Other Administrative Expenses | 71,000 |
Prepaid Expenses | 42,500 |
Raw Materials Inventory â November 30 | 53,000 |
Raw Materials Inventory â October 31 | 41,000 |
Raw Materials Purchases | 186,500 |
Rent â Factory Equipment | 45,000 |
Repairs â Factory Equipment | 5,400 |
Salaries | 335,000 |
Sales | 1,425,000 |
Sales Commissions | 42,750 |
Work In Process Inventory â November 30 | 44,000 |
Work In Process Inventory â October 31 | 51,000 |
Property Tax on Factory | 5,500 |
Instructions:
a. From the above information, preparea cost of goods manufactured schedule, an income statement, and thecurrent asset section of the balance sheet for WaterwaysCorporation for the month of November.
