Ending direct materials …………………. Direct materials used ……………………. 705,000 Cost of goods manufactured: Beginning work in process ……………… 120,000 Direct materials used ……………………. 705,000 Direct labor ……………………………… 135,000 Manufacturing overhead ………………… 370,000 Ending work in process …………………. Cost of goods manufactured …………... 1,200,000 2. | |Cost
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Cost of Production Report | Direct materials, direct labor, and manufacturing overhead costs assigned to each product line | Monthly or weekly | Rick Thrune | Cost of Production Report for Composite Kayaks | Detailed direct material and direct labor costs for the composite kayaks | Weekly | C) | | Direct Materials | Direct Labor | Manufacturing Overhead | Period cost | Winona Agency | Property insurance for the manufacturing plant | | | X | | Bill Johnson (sales manager) | Payroll–payment
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calculate the total overhead (burden) for years 1988 and 1990. For year 1988, the total overhead was $109,890; dividing by the total direct labor of $25,294 gives an overhead rate of 434%. For year 1990, the total overhead was $79,393; dividing by the total direct labor of $14,102 gives an overhead rate of 563%. Next, we will need to calculate the overhead for each product using the overhead rate from each model year. Adding the material costs and labor costs to the total overhead gave us total costs
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materials used are NOT always the same as raw materials purchased so you must calculate it!): Prime Costs $545,000 Less Direct Labor Cost 220,000 Direct Materials Cost $325,000 Manufacturing Overhead Cost: The problem states direct labor cost and % mfg ovhd is of conversion cost , so you can figure out the % direct labor is of conversion cost and use the formula to calculate conversion cost Direct Labor Cost/
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clearly by calculating the per unit variance. And company can fix the problem by directly control the agency in charge. To analysis the variance, firstly we need to calculate the variable cost per unit of product. Using Exhibit 3(Total variable manufacturing costs) we can easily get the cost per unit of the products (Exhibit 4). From the exhibit, we can find out that all the actual cost per unit is higher than the standard ones which mean all the variances are unfavorable. Then we can calculate the
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30% Cost of Goods Available for Sale $1,020,000 Prime Costs $545,000 Manufacturer Overhead 65% of Conversion cost Direct Materials $325,000 Beginning Inventory numbers: Raw Materials $41,000 Works in Process $56,000 Finished Goods $35,000 Formulas: Prime cost = Direct Materials cost + Direct Labor cost Conversion cost = Direct Labor cost + Manufacturing overhead cost (65% conversion) Prime cost = 325,000 + $220,000 545,000 ( Data given) Trying
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cost control, inventory valuation, and financial statement presentation. In job order costing, companies first accumulate manufacturing cost in three accounts: Raw materials inventory, factory labor, and manufacturing overhead. The assign the accumulated cost to work in process inventory and eventually to finished good inventory and cost of goods sold. In a manufacturing company, the cost of factory labor consists of three costs: gross earnings of factory workers, employer payroll taxes on these
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expects to produce 1,200,000 units of Product XX in 2010. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $6, and overhead $8. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1. Complete the flexible manufacturing budget for the relevant range value using 20,000 unit increments. E22-5 The standard cost of Product B manufactured by Mateo Company
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1-5. Direct material, direct labor, and manufacturing overhead. 1-6. Direct materials are used direct to the product, they are physical and tangible. Direct materials are used to support the production processes. Direct labor is the people work in the first line and the costs can be easily traced to a product. Indirect labor is the people involved in the production process, but not making the product directly. Manufacturing overhead including indirect material and indirect labor, it
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Table of Contents INTRODUCTION AND MAIN ISSUES 3 ANALYSIS 4 Qualitative 4 Quanitative 5 Breakeven Point (BEP) 5 Flexible Budget 6 Variances 7 RECOMMENDATION 8 Encourage, motivate, reward and recognize 8 Cellular Manufacturing System 8 Implement new accounting method 9 Extend the contract 9 ACTION PLAN 10 REFERENCES 12 INTRODUCTION AND MAIN ISSUES Danshui was a contract manufacturer that assembled electronic products for companies wishing to
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