Question
In: Accounting
determine the total amount of manufacturing overhead,product costs & period costs
Caroline Company reports the following costs and expenses in May.
Factory Utilities 11,500
Depreciation on factory equipment 12,650
Depreciation on delivery trucks 3,800
Indirect factory labor 48,900
indirect materials 80,800
Direct materials used 137,600
Factory manager's salary 8,000
Direct labor 69,100
Sales salaries 46,400
Property taxes on factory building 2,500
Repairs to office equipment 1,300
factory repairs 2,000
Advertising 18,000
office supplies used 2,640
Instructions
From the information, determine the total amount of:
(a) Manufacturing overhead.
(b) Product costs.
(c) Period costs.
Solutions
Expert Solution
Req (a)
Calculation of Manufacturing Overhead
| Particulars | Amount$ |
| Factory utilities | 11,500 |
| Depreciation on factory equipment | 12,650 |
| Indirect factory labor | 48,900 |
| Indirect materials | 80,800 |
| Factory manager's Salary | 8,000 |
| Property taxes on factory building | 2,500 |
| Factory repairs | 2,000 |
| Manufacturing overhead | 1,66,350 |
Req (b)
Calculation of Product Costs
| Particulars | Amount$ |
| Direct materials | 1,37,600 |
| Direct labor | 69,100 |
| Manufacturing overhead | 1,66,350 |
| Product Costs | 3,73,050 |
Req(c)
Calculation of Period Costs
| Particulars | Amount$ |
| Depreciation on delivery trucks | 3,800 |
| Sales Salaries | 46,400 |
| Repairs to office equipment | 1,300 |
| Advertising | 18,000 |
| Office supplies used | 2,640 |
| Period costs | 72,140 |
Answer to the above question clearly shown in the explanation option
balaji rao answered 3 years agoRelated Solutions
From the information, determine the total amount of: (a) Manufacturing overhead $ (b) Product costs $ (c) Period costs $
Question Description
Knight Company reports the following costs and expenses in May.
Factory utilities
$15,500
Direct labor
$69,100
Depreciation on factory equipment
12,650
Sales salaries
46,400
Depreciation on delivery trucks
3,800
Property taxes on factory building
2,500
Indirect factory labor
48,900
Repairs to office equipment
1,300
Indirect materials
80,800
Factory repairs
2,000
Direct materials used
137,600
Advertising
15,000
Factory manager’s salary
...
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costs for the period does not equal total overhead cash payments
for the period because:
a.overhead costs typically only require cash payments for
indirect materials.
b.overhead costs typically only require cash payments for
factory rent.
c.overhead costs typically do not require cash payments.
d.overhead costs typically include depreciation costs, which
does not require a cash payment.
Using the ABC data, determine the total amount of overhead cost assigned to each product.
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At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools:
Activity Cost Pool
Activity Measure
ExpectedOverhead Cost
Expected Activity
Labor-related
Direct labor-hours
$
311,500
44,500
DLHs
Purchase orders
Number of orders
$
8,840
221
orders
Parts management
Number of part types
$
71,280
99
part types
Board etching
Number of boards
$
63,700
1,820...
Using the ABC data, determine the total amount of overhead cost assigned to each product.
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Activity Cost Pool
Activity Measure
ExpectedOverhead Cost
ExpectedActivity
Labor-related
Direct labor-hours
$
30,115
1,585
DLHs
Purchase orders
Number of orders
$
2,320
580
orders
Product testing
Number of tests
$
6,930
330
tests
Template etching
Number of templates
$
870
30
templates
General factory
Machine-hours
$
65,100
9,300
MHs
...
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Required:
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d....
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product costs are to be assigned to the units completed and the
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2.What is the total cost of goods manufactured for the Machining
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Required:
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