In: Accounting
Classifying Costs
The following is a manufacturing cost report of Marching Ants Inc. Evaluate and correct this report.
Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 |
||
Materials used in production (including | ||
$69,800 of indirect materials) | $753,500 | |
Direct labor (including $104,700 maintenance salaries) | 697,700 | |
Factory overhead: | ||
Supervisor salaries—plant | 641,900 | |
Heat, light, and power—plant | 174,400 | |
Sales salaries | 432,600 | |
Promotional expenses | 390,700 | |
Insurance and property taxes—plant | 188,400 | |
Insurance and property taxes—corporate offices | 272,100 | |
Depreciation—plant and equipment | 153,500 | |
Depreciation—corporate offices | 111,600 | |
Total | $3,816,400 |
Marching Ants Inc. | ||
Manufacturing Costs | ||
For the Quarter Ended June 30 | ||
$ | ||
Factory overhead: | ||
$ | ||
Total factory overhead | ||
Total manufacturing costs | $ |
Marching Ants Inc. | ||
Manufacturing Costs | ||
For the Quarter Ended June 30 | ||
Direct material used in production ($753,500-69,800) | $683,700 | |
Direct labor cost (697,700-104700) | 593,000 | |
Factory overhead: | ||
Indirect materials | $69,800 | |
Maintenance salary | 104700 | |
Supervisor salaries—plant | 641900 | |
Heat, light, and power—plant | 174400 | |
Insurance and property taxes—plant | 188400 | |
Depreciation—plant and equipment | 153500 | |
Total factory overhead | 1,332,700 | |
Total manufacturing costs | $2,609,400 |