Shannon Sharpe owns and operates three Frazer Speedo outlets in Columbus, OH. Frazer Speedo is an oil and lubrication service outlet - one ofmany outlets popular throughout the Midwest. The Frazer Speedo outlets also change transmission and power steering fluids. In May, purchasesof materials equaled $80,000, the beginning inventory of materials was $47,300, and the ending inventory of materials was $15,250. Payments todirect labor during the month totaled $63,000. Overhead incurred was $110,000. The Columbus outlet also spent $5,000 on advertising during themonth. A franchise fee of $2,000 per outlet is paid every month. Revenues for May were $400,000What is the Prime Cost for May ?O $80,000O $143,000$175,050O $110,000

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Answered: Shannon Sharpe owns and operates three…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 1COMP

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Hi owns and operates three Compufix shops in Caloocan City area. Compufix repairs and upgrades computers on site. In August, purchases of materials equaled P 9,750, the beginning inventory materials was P 850, and the ending inventory of materials was P 950. Payments for direct labor during the month totaled P 18,570. Overhead incurred was P 15,000. The Caloocan City shops also spent P 5,000 on advertising during the month. Administrative costs (primarily accounting and legal services) amounted to P 3,000 for the month. Revenues for August were P 60,400. What was the total cost of services for August?
Shannon Sharpe owns and operates three Frazer Speedo outlets in Columbus, OH. Frazer Speedo is an oil and lubrication service outlet - one of many outlets popular throughout the Midwest. The Frazer Speedo outlets also change transmission and power steering fluids. In May, purchases of materials equaled $80,000, the beginning inventory of materials was $47,300, and the ending inventory of materials was $15,250. Payments to direct labor during the month totaled $63,000. Overhead incurred was $110,000. The Columbus outlet also spent $5,000 on advertising during the month. A franchise fee of $2,000 per outlet is paid every month. Revenues for May were $400,000 What is the TotalCost for May ? $173,000 O $285,050 O $175,050 O $400,000
Genuine Spice Inc. began operations on January 1 of the current year. The company produces eight- ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows:
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Calzado Company produces leather shoes in batches. The shoes are produced in one plant located on 20 acres. The plant operates two shifts, five days per week. Each time a batch is produced, just-in-time suppliers deliver materials to the plant. When the materials arrive, a worker checks the quantity and type of materials with the bill of materials for the batch. The worker then makes an entry at a PC terminal near the point of delivery acknowledging receipt of the material. An accounts payable clerk reviews all deliveries at the end of each day and then prints and mails checks the same day materials are received. Prior to producing a batch, the equipment must be configured to reflect style and size features. Once configured, the batch is produced passing through three operations: cutting, sewing, and attaching buckles and other related parts such as heels.At the end of the production process, a sample of shoes is inspected to ensure the right level of quality. After inspection, the…
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