Marching Ants Inc Manufacturing Costs For the Quarter Ended

Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 1Materials used in production (including $56,200 of indirect materials) 2Direct labor (including $84,400 maintenance salaries) 3Factory overhead 4 Supervisor salaries-plant 5 Heat, light, and power-plant 6Sales salaries 7 Promotional expenses 8 Insurance and property taxes-plant 9 Insurance and property taxes-corporate offices 10 Depreciation-plant and equipment 11 Depreciation-corporate offices 12 Total $607,500.00 562,500.00 517,500.00 140,650.00 48,750.00 15,000.00 151,900.00 219,400.00 123,750.00 90,000.00 $3,076,950.00

Solution

1. The maintenance salaries and indirect material need to be included in factory overhead.

2. The following items are been incorrectly included in the factory overhead :

          --- sales salaries , promotional expenses , corporate office insurance , property taxes and corporate office depreciation.

Therefore the corrected report :

      

MARCHING ANTS INC. Manufacturing costs for thr quarter ended June 30,20XX

Cost of direct material used in production *		$551300
Direct labour *		$478100
Factory overhead :
Maintenance salaries	$84400
Indirect material	$56200
Supervisor salaries-plant	$517500
Heat,light,and power-plant	$140650
Insurance and property taxes-plant	$151900
Depreciation-plant and equipment	$123750	$1074400
Total		$2103800
* $607500 - $56200 = $551300
$562500 - $84400 = $478100