On April 1, 2016, Mandy's Auto has $542,194 in partially completed cars and trucks in their inventory. During the month of April, they incur the following costs: $167,588 to finish the vehicles • $1,274,639 to complete another 75 vehicles • $388,642 to start 40 more vehicles. Write the equation to calculate the cost of goods manufactured for the month of April and then calculate the cost of goods manufactured for that month? Answer:

On April 1, 2016, Mandy's Auto has $542,194 in partially completed cars and trucks in their inventory. During the month of April, they incur the following costs: $167,588 to finish the vehicles • $1,274,639 to complete another 75 vehicles • $388,642 to start 40 more vehicles. Write the equation to calculate the cost of goods manufactured for the month of April and then calculate the cost of goods manufactured for that month? Answer:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Edmund Supplies Company sold 3,170 metal connectors on account to Door Incorporated for $200 each on September 15. Each metal connector costs Edmund $150 to make. Door has 60 days to return the unused goods. Edmund believes that Door will ultimately return 75 of the connectors. On September 29, Door returns 50 connectors. Edmund has a September 30 fiscal year end. At year end, Edmund believes 75 connectors is a good estimate of the total that will be returned. The cost of recovering these products is immaterial. Edmund expects to be able to resell these goods for a profit. Instructions Prepare the following journal entries on the books of Edmund Company: Entries to record the initial sales on September 15. Entries to record the return of goods September 29. Entries to record the year-end adjustment based on estimated returns on September 30.
[The following information applies to the questions displayed below.]Shadee Corp. expects to sell 630 sun visors in May and 410 in June.Each visor sells for $24. Shadee’s beginning and ending finishedgoods inventories for May are 75 and 45 units, respectively. Endingfinished goods inventory for June will be 60 units.!Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays itsworkers $8 per hour.Required:Determine Shadee's budgeted direct labor cost for May and June. (Do not round yourintermediate values. Round your answers to 2 decimal places.)$ $May JuneBudgeted Direct Labor Cost 0.00 0.0
During July 2014, Leesburg, Inc., sold 250 units of its product Empire for $4,000. The following units were available (see image). A sale of 250 units was made after purchase 3. Of the units sold, 100 came from begin-ning inventory and 150 came from purchase 3.Determine cost of goods available for sale and ending inventory in units. Then determine the costs that should be assigned to cost of goods sold and ending inventory under each of the following assumptions: (For each alternative, show the gross margin. Round unit costs to the nearest cent and totals to dollars.) 1.Costs are assigned under the periodic inventory system using (a) the specific iden-tification method, (b) the average-cost method, (c) the FIFO method, and (d) the LIFO method. 2.Costs are assigned under the perpetual inventory system using (a) the average-cost method, (b) the FIFO method, and (c) the LIFO method.
Ibri Company, a manufacturer of stereo systems, started its production in January 2018. For the preceding 3 years had been a retailer of stereo systems. After a thorough survey of stereo system markets, Ibri Company decided to turn its retail store into a stereo equipment factory. Raw materials cost for a stereo system will total $77 per unit. Workers on the production lines are on average paid $11 per hour. A stereo system usually takes 4 hours to complete. In addition, the rent on the equipment used to assemble stereo systems amounts to $5,200 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is $3,000. Factory janitorial costs are $1,000 monthly. Advertising costs for the stereo system will be $5,000 per month. The factory building depreciation expense is $8,400 per year. Property taxes on the factory building will be $12,000 per year. Instructions Prepare an answer sheet with the following column headings. Cost…
Bell Company, a manufacturer of audio systems, started its production in October 2017. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment factory.Raw materials cost for an audio system will total $75 per unit. Workers on the production lines are on average paid $15 per hour. An audio system usually takes 7 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,120 per month. Indirect materials cost $6 per system. A supervisor was hired to oversee production; her monthly salary is $3,840.Factory janitorial costs are $1,410 monthly. Advertising costs for the audio system will be $8,750 per month. The factory building depreciation expense is $7,200 per year. Property taxes on the factory building will be $9,000 per year. Assuming that Bell manufactures, on average, 1,520 audio systems per month, enter…
The following information relates to Josma ltd for the month of July 2020.The company usessingle/unit costing method. The company expects to produce 1,000 units during the month of July 2020 Additional Information:1. Some products had some defects which required additional work being carried out in the factory to correct these defects. The cost of correcting these defective products was Shs 250,000.2. The was a by-product that resulted from the production which was sold generating cash amounting to Shs 480,000 Required:i) Prepare a cost sheet for the company using the single/unit costing method. The cost sheet should indicate all the totals for all major categories of costs including (Prime Cost; Works/Factory cost, Cost of production, Cost of goods sold and Cost of sales).ii) Calculate the profit the profit/loss the company will have for the month of July 2020 if the projected revenue is 96,000,000
Samuelson and Messenger (S&M) began 2016 with 200 units of its one product. These units were purchased near the end of 2015 for $25 each. During the month of January, 100 units were purchased on January 8 for $28 each and another 200 units were purchased on January 19 for $30 each. Sales of 125 units and 100 units were made on January 10 and January 25, respectively. There were 275 units on hand at the end of the month. S&M uses a periodic inventory system. Calculate ending inventory and cost of goods sold for January using (1) FIFO, and (2) average cost.
Splish Brothers Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets Spish Brothers decided to turn its retail store into an audio equipment factory Production began October 1.2025. Direct materials costs for an audio system total $75 per unit Workers on the production lines are paid $15 per hour An audio system takes 7 labor hours to complets. In addition, the rent on the equipment used to assemble audio systems amounts to $5,960 per month Indirect materials cost $7 per system. A supervisor was hired to oversee production her monthly salary is $2.060 Factory janitorial costs are $2.310 monthly Advertising costs for the audio system will be $9.330 per month. The factory building depreciation is $7,080 per year. Property taxes on the factory building will be $8.400 per year (a) Assuming that Splish Brothers manufactures, on average 1.500 audio systems per month enter each cost item on your answer sheet placing the…
Samuelson and Messenger (SAM) began 2018 with 200 units of its one product. These units were purchasednear the end of 2017 for $25 each. During the month of January, 100 units were purchased on January 8 for $28each and another 200 units were purchased on January 19 for $30 each. Sales of 125 units and 100 units weremade on January 10 and January 25, respectively. There were 275 units on hand at the end of the month. SAMuses a periodic inventory system. Calculate ending inventory and cost of goods sold for January using (1) FIFO,and (2) average cost.
Flounder Corp. had 2,000 units of part T on hand April 1, 2017, costing $ 8 each. During April, Flounder made the following purchases of part T. Unit Units Cost April 4 3,000 $ 8.25 10 4,000 8.40 19 1,000 29 2,900 9.90 A physical count at April 30, 2017 showed 4,100 units of Part T on hand. Using the FIFO method, what is the cost of part T inventory at April 30, 2017? Using the LIFO method, what is the inventory cost? Using the average-cost method, what is the inventory cost? (Round average cost per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 1,620.) FIFO LIFO Average Cost Inventory Cost %24 %24 %24
Time Again, LLC produces and sells a mantel clock for $100 per unit. In 2017, 42,125 clocks were produced and 37,958 were sold. Other information for the year includes:Direct materials $43 per unitDirect manufacturing labor $5 per unitVariable manufacturing costs $3.50 per unitSales commissions $14.50 per partFixed manufacturing costs $65.00 per unitAdministrative expenses, all fixed $37.50 per unitWhat is the inventoriable cost per unit using variable costing? A) $66.00B) $51.50C) $48.00D) $103.50
Glass time repairs chips in car windshields. The company incurred the following operating cost for the month of March 2024 Glass time earned $28,000 in service revenues for the month of March by repairing 250 windshields. All cost shown are considered to be directly related to the repair service. 1) prepare an income statement for the month of March 2) compute the cost per unit of repairing one windshield 3) the manager of glass time must keep the unit operating costs below $60 per windshield in order to get his bonus. Did he meet the goal?