Question

In: Accounting

Case Prime Cost Conversion Cost Direct Materials Direct Labor Manufacturing Overhead Total Manufacturing Cost A 9,480...

Case Prime Cost Conversion Cost Direct Materials Direct Labor Manufacturing Overhead Total Manufacturing Cost
A 9,480 16,460 4,040 11,020
B 10,010 7,330 25,200 42,540
C 55,700 110,300 42,300
D 48,150 19,900 11,750 68,050
E 14,000 24,300 56,200

For each of the following independent cases (A–E), compute the missing values in the table:

Solutions

Expert Solution

Formulas to be used while calculating the missing figures:

1) - Prime cost = Direct materials + Direct labor
2) - Conversion cost = Direct labor + Manufacturing overhead
3) - Total Manufacturing cost = Direct materials + Direct labor + Manufacturing overhead

Case A

Direct labor (using formula 1 above) = Prime cost - Direct materials = 9,480 - 4,040 = $5,440
Total manufacturing cost (using formula 3 above ) = Direct materials + Direct labor + Manufacturing overhead = 4,040 + 5,440 + 11,020 = 20,500

Case B

Prime cost (using formula 1 above ) = Direct materials + Direct labor = 10,010 + 7,330 = 17,340
Conversion cost ( using formula 2 above ) = Direct labor + Manufacturing overhead = 7,330 + 25,200 = 32,530

Case C

Direct labor ( using formula 1 above ) = Prime cost - Direct materials = 55,700 - 42,300 = 13,400
Manufacturing overhead ( using formula 2 above ) = Conversion cost - Direct labor = 110,300 - 13,400 = 96,900
Total Manufacturing cost = Direct materials + Direct labor + Manufacturing overhead = 42,300 + 13,400 + 96,900 = 152,600

Case D

Prime cost ( using formula 1 above ) = Direct materials + Direct labor = 19,900 + 11,750 = 31,650
Manufacturing overhead ( using formula 2 above ) = Conversion cost - Direct labor = 48,150 - 11,750 = 36,400

Case E

Direct materials ( using formula 3 above ) = Total manufacturing cost - Direct labor - Manufacturing overhead = 56,200 - 14,000 - 24,300 = 17,900
Prime cost ( using formula 1 above ) = Direct materials + Direct labor = 17,900 + 14,000 = 31,900
Conversion cost ( using formula 2 above ) = Direct labor + Manufacturing overhead = 14,000 + 24,300 = 38,300

Case Prime cost Conversion cost Direct materials Direct labor Manufacturing overhead Total manufacturing cost
A 9,480 16,460 4,040 5,440 11,020 20,500
B 17,340 32,530 10,010 7,330 25,200 42,540
C 55,700 110,300 42,300 13,400 96,900 152,600
D 31,650 48,150 19,900 11,750 36,400 68,050
E 31,900 38,300 17,900 14,000 24,300 56,200

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Conversion costs are A. direct materials plus direct labor. B. direct materials plus manufacturing overhead. C....
Conversion costs are A. direct materials plus direct labor. B. direct materials plus manufacturing overhead. C. indirect materials plus indirect labor. D. direct labor plus manufacturing overhead.
Compute the cost and efficiency variances for direct materials and direct labor. 2. For manufacturing​ overhead,...
Compute the cost and efficiency variances for direct materials and direct labor. 2. For manufacturing​ overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 3. HeadsetHeadset​'s management used better quality materials during September. Discuss the​ trade-off between the two direct material variances. Standard Cost Information Quantity Cost Direct Materials 2 parts $0.15 per part Direct Labor 0.02 hours 9.00 per hour Variable Manufacturing Overhead 0.02 hours 11.00 per hour Fixed Manufacturing Overhead...
Direct Materials 1.05 Direct Labor 0.46 Variable MOH 2.16 Fixed Manufacturing overhead 2.00 total cost per...
Direct Materials 1.05 Direct Labor 0.46 Variable MOH 2.16 Fixed Manufacturing overhead 2.00 total cost per unit 5.67 Sales Price Per Unit 12.00 MSI has been approached by a fourth-grade teacher from Portland about the possibility of creating a specially designed game that would be customized for her classroom and environment. The teacher would like an educational game to correspond to her classroom coverage of the history of the Pacific Northwest, and the state of Oregon in particular. MSI has...
1. Identify at least one example of a manufacturing cost (direct labor, direct materials, or overhead...
1. Identify at least one example of a manufacturing cost (direct labor, direct materials, or overhead costs) associated with value added activities a non-profit homeless shelter.. 2.Which one of these: direct labor, direct materials, or overhead costs are most prominent (make up more of a non-profit homeless shelters costs)? It is fine to conjecture on this answer. You may not have access to the data.
Variable Cost Per Unit: Manufacturing: Direct Materials = $20 Direct Labor = $12 Variable Manufacturing Overhead...
Variable Cost Per Unit: Manufacturing: Direct Materials = $20 Direct Labor = $12 Variable Manufacturing Overhead = $4 Variable Selling and Administrative = $2 Fixed costs per year: Fixed manufacturing overhead = $960,000 Fixed selling and administrative expenses = $240,000 During its first year of Operations, produced 60,000 units and sold 60,000 units. During it's second year of operations, it produced 75,000 and sold 50,000 units. In its third year, it produced 40,000 units and sold 65,000 units. The selling...
Morton Company has two divisions. Sales, direct materials cost, direct labor cost, and manufacturing overhead data...
Morton Company has two divisions. Sales, direct materials cost, direct labor cost, and manufacturing overhead data for Morton’s two divisions are available below. Note: All of Morton Company’s products are sold in competitive markets.                                                                     Missile                                Salt                                                                  Products                       Products Sales                                                     $1,500,000                    $1,000,000 Direct labor                                            (800,000)                       (300,000) Direct materials                                     (100,000)                         (40,000) Manufacturing overhead*                    (400,000)                       (150,000) Gross profit                                            $200,000                        $510,000    *Manufacturing overhead is allocated to production based on the amount of direct labor cost.            Morton has determined that its total...
Morton Company has two divisions. Sales, direct materials cost, direct labor cost, and manufacturing overhead data...
Morton Company has two divisions. Sales, direct materials cost, direct labor cost, and manufacturing overhead data for Morton’s two divisions are available below. Note: All of Morton Company’s products are sold in competitive markets. Missile Salt Products Products Sales $1,500,000 $1,000,000 Direct labor (800,000) (300,000) Direct materials (100,000) (40,000) Manufacturing overhead* (400,000) (150,000) Gross profit $200,000 $510,000 *Manufacturing overhead is allocated to production based on the amount of direct labor cost. Morton has determined that its total manufacturing overhead cost...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Standard CostsActual CostsDirect materials251,600 lbs. at $5.40249,100 lbs. at $5.20Direct labor18,500 hrs. at $17.3018,930 hrs. at $17.70Factory overheadRates per direct labor hr.,based on 100% of normalcapacity of 19,310 directlabor hrs.:Variable cost, $4.80$87,910 variable costFixed cost, $7.60$146,756 fixed costEach unit...
Variable cost (per pound) Direct materials $3.75 Direct manufacturing labor 8.00 Variable overhead (manufacturing, marketing, distribution...
Variable cost (per pound) Direct materials $3.75 Direct manufacturing labor 8.00 Variable overhead (manufacturing, marketing, distribution and customer service) 2.05 Total variable cost per bowl $13.80 Fixes costs Manufacturing $12,000 Marketing, distribution, and customer service 214,800 Total fixed cost $226,800 Selling price $30 Expected sales, 19,500 units $585,000 Income tax rate 40% S.L. Brook and​ Company, a manufacturer of quality handmade walnut​ bowls, has had a steady growth in sales for the past 5 years.​ However, increased competition has led...
The following cost information is available: Direct materials     $420 Direct labor (variable)    110 Variable manufacturing overhead...
The following cost information is available: Direct materials     $420 Direct labor (variable)    110 Variable manufacturing overhead 80 Fixed manufacturing overhead 30 A supplier has offered to sell the component to CM for $650 per unit. If 4-I buys the component from the supplier, the released facilities can be used to manufacture a product that would generate a contribution margin of $10,000 annually. Assuming that 4-I needs 4,000 components annually and that the fixed manufacturing overhead is unavoidable, what would be...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT