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In: Accounting
Question 1 (10 MARKS) Ashland Company, a maker of kitchen cabinets, incurred the following costs during...
Question 1
Ashland Company, a maker of kitchen cabinets, incurred the following costs during the current year:
Required: Classify each cost as either a product or period cost.
Product Period
- Depreciation on automobiles used sales staff.
- Salary of Ashland's chief executive officer
- Glue used in the production process
- Supplies for factory washroom
- Research and development costs
- Property taxes on factory building
- Salary of company controller
- Depreciation on furniture in factory lunchroom
- Cost of lubricating machinery
- Wood used in production process
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Question 1 10 MARKS Ashland Company, a maker of kitchen cabinets, incurred the following costs during...
Question 1
10 MARKS
Ashland Company, a maker of kitchen cabinets, incurred the
following costs during the current year:
Required: Classify each cost as either a product or period
cost.
Product Period
1. Depreciation on automobiles used sales staff.
2.Salary of Ashland's chief executive officer
3.Glue used in the production process
4.Supplies for factory washroom
5.Research and development costs
6.Property taxes on factory building
7.Salary of company controller
8.Depreciation on furniture in factory lunchroom
9.Cost of lubricating machinery
10.Wood used...
Hillsdale Media is a specialty kitchen cabinet maker that produces cabinets to order. It is a...
Hillsdale Media is a specialty kitchen cabinet maker that
produces cabinets to order. It is a mature business that earned
EBITDA of $900,000 on revenues of $ 5 million in the most recent
year and is expected to continue to generate these figures in
perpetuity. The company is considering carrying some of its most
popular models in inventory, with an eye on increasing sales and
operating profits. It has collected the following information: • To
carry inventory, the company will...
Hillsdale Media is a specialty kitchen cabinet maker that produces cabinets to order. It is a...
Hillsdale Media is a specialty kitchen cabinet maker that
produces cabinets to order. It is a mature business that earned
EBITDA of $900,000 on revenues of $5 million in the most recent
year and is expected to continue to generate these figures in
perpetuity. The company is considering carrying some of its most
popular models in inventory, with an eye on increasing sales and
operating profits. It has collected the following information To
carry inventory, the company will have to...
Identifying Research and Development Costs Diaz Company incurred the following costs during the year 2020. 1....
Identifying Research and Development Costs
Diaz Company incurred the following costs during the year
2020.
1.
Salaries expense related to design for a trademark with an
indefinite estimated life
$4,800
2.
Materials used for research and development projects for the
current year
8,000
3.
Fees paid to external consultants related to research and
development projects
24,000
4.
Trouble-shooting in connection with breakdowns during
production
14,400
5.
Design of tooling involving new technology
7,200
6.
Cost of equipment (purchased January 2019)...
Case 2: (30 marks) Euro Kitchens – a kitchen cabinet maker has presented the following account...
Case 2:
Euro Kitchens – a kitchen cabinet maker has presented
the following account balances to you as on 31 December
20X1:
Euro Kitchens, capital $123 450
Building (net) 55 500
Investment in government bonds 45 000
Mortgage payable (due 1/7/20X8) 33 750
Notes payable (due 31/12/20X5) 22 500
Interest on Notes payable 1 200
Office equipment (net) 35 400
Depreciation expense – Office equipment 3
500
Accounts receivable 28 950
Bad debts 7 200
Accounts payable 22 050
Inventory...
Diaz Company incurred the following costs during the year 2020. 1. Salaries expense related to design...
Diaz Company incurred the following costs during the year
2020.
1.
Salaries expense related to design for a trademark with an
indefinite estimated life
$12,000
2.
Materials used for research and development projects for the
current year
20,000
3.
Fees paid to external consultants related to research and
development projects
60,000
4.
Trouble-shooting in connection with breakdowns during
production
36,000
5.
Design of tooling involving new technology
18,000
6.
Cost of equipment (purchased January 2019) that will have
alternative uses...
Diaz Company incurred the following costs during the year 2020. 1. Salaries expense related to design...
Diaz Company incurred the following costs during the year
2020.
1.
Salaries expense related to design for a trademark with an
indefinite estimated life
$12,000
2.
Materials used for research and development projects for the
current year
20,000
3.
Fees paid to external consultants related to research and
development projects
60,000
4.
Trouble-shooting in connection with breakdowns during
production
36,000
5.
Design of tooling involving new technology
18,000
6.
Cost of equipment (purchased January 2019) that will have
alternative uses...
During the month of January, the following costs were incurred:
During the month of January, the following costs were incurred:
2010
Jan 8 Purchased Materials for cash, $150,000
Jan 10 Requisition for Direct Materials that were put into production, $100,000
Jan 20 Requisitioned for Indirect Materials that were put into production, $4,000.
Jan 23 Direct Labor cost incurred during the period, $60,000 when the labor rate per hour was $5.
Jan 25 Indirect labor cost incurred during the month of January is $6,000.
Jan 28 Paid factory supervisor’s salaries...
QUESTION 1 (a) Akuaba Ltd produces four (4) different types of kitchen cabinets. The Production Manager...
QUESTION 1
(a) Akuaba Ltd produces four (4) different types of kitchen
cabinets. The Production
Manager is preparing its production mix for the year and has
presented the following
Type of Cabinet:
J
F
C
P
Selling Price/Unit (GH₵)
420
360
300
240
Material Price/kg GH₵10
Labour Hour Rate GH₵5/hour
Materials (kg)
10
8
10
12
Labour Hours
8
10
6
4
Maximum Demand (units)
15,000
12,000
20,000
20,000
Assume that (a) materials are limited to 596,000 kgs; (b)...
ABC company incurred the following maintainance costs during the past 6 months Table 1 Months Machine...
ABC company incurred the following maintainance costs during the
past 6 months
Table 1
Months Machine hours Cost $
1 20 4560
2 40 9780
3 50 10920
4 60 11280
5 30 6320
6 90 18920
7 25 5140
8 43 10500
9 70 12400
REQUIRED
Part 1
A. Use the data on Table 1 , estimate the variable and fixed cost
of the company
using the high and low method
B. Develop a cost function for the company....
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