The following cost data pertain to the operations of Ladwig Department Stores, Incorporated, for the month of December. Corporate legal office salaries$ 68,000 The Brentwood Store is just one of many stores owned and operated by the company. The Shoe Department is one of many departments at the Brentwood Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are direct costs of the Shoe Department? A partial listing of costs incurred at Archut Corporation during September appears below: Direct materials$ 113,000 The total of the product costs listed above for September is: The University Store, Incorporated is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below: University Store, IncorporatedIncome StatementFor the Quarter Ended March 31Sales $ 800,000Cost of goods sold 560,000Gross margin 240,000Selling and administrative expenses: Selling$ 100,000 Administrative110,000210,000Net operating income $ 30,000 On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed. The contribution margin for the University Store for the first quarter is: $140,000 Unit sales = $800,000 ÷ $40 per book = 20,000 books Sales $ 800,000 $3,595 Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $155,000 + ($3.40 per machine-hour × 50,000 machine-hours) = $155,000 + $170,000 = $325,000 Direct materials$ 645Direct labor2,300Manufacturing overhead applied650Total cost of Job A881$3,595 $10,510 Estimated total manufacturing overhead cost = Estimated
total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $279,000 + ($5.00 per direct labor-hour × 90,000 direct labor-hours) = $279,000 + $450,000 = $729,000 Direct materials$ 700Direct labor9,000Manufacturing overhead applied810Total cost of Job P951$10,510 Explanation Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the
allocation base) = $259,200 + ($6.00 per direct labor-hour × 54,000 direct labor-hours) = $259,200 + $324,000 = $583,200 Direct materials$ 640Direct labor5,400Manufacturing overhead applied1,080Total cost of Job P951$7,120 Total cost of Job P951 (a)$7,120Number of units (b)25Unit product cost (a) ÷ (b)$284.80 The following accounts are from last year's books at Sharp Manufacturing: Raw MaterialsDebitCreditBalance0(b)155,800(a)168,500 12,700 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for the year? he following accounts are from last year's books of Sharp Manufacturing: Raw
MaterialsDebitCreditBalance0(b)154,200(a)164,500 10,300 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of direct materials used for the year? The following accounts are from last year's books at Sharp Manufacturing: Raw MaterialsDebitCreditBalance0(b)155,400(a)167,500 12,100 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year? $5,340.65 Customer Margin-Activity-Based Costing Analysis Sales (1,500 units × $18.55 per unit) $ 27,825.00Costs: Direct materials ($8.35 per unit × 1,500 units)$ 12,525.00 Direct labor ($3.95 per unit × 1,500 units)5,925.00 Supporting assembly ($3.45 per DLH × 0.25 DLHs per unit × 1,500 units)1,293.75 Processing batches ($193.30 per batch × 5 batches)966.50 Processing orders ($83.05 per order × 2 orders)166.10 Servicing customers ($1,608.00 per customer × 1 customer)1,608.0022,484.35Customer margin $ 5,340.65 $3,450.90 Customer Margin-Activity-Based Costing Analysis Sales (1,100 units × $15.60 per unit) $ 17,160.00Costs: Direct materials ($7.85 per unit × 1,100 units)$ 8,635.00 Direct labor ($1.90 per unit × 1,100 units)2,090.00 Supporting assembly($6.55 per DLH × 0.10 DLHs per unit × 1,100 units)720.50 Processing batches ($138.20 per batch × 7 batches)967.40 Processing orders ($52.60 per order × 2 orders)105.20 Servicing customers ($1,191.00 per customer × 1 customer)1,191.0013,709.10Customer margin $ 3,450.90 |