OSIM 316 PM 14 instructureuploadss3amazonawscom 3 instructur

OSIM 3:16 PM 14% instructure-uploads.s3.amazonaws.com 3 instructure-uploads.s3.a... cluster57-files.instructure.c Managerial accounting refre YouTube Favorites Module 1 Homework Assignment ACCT 111 - Spring 2018 Problem 1 Materials costs Facilities costs: Other costs: $75,000Factory Cement Indirect materials Sales & Admin supplies $60,000 Professional services** 4,600 00 Sales and admin 25 Insurance-Factory Insurance-Other Freight out expense Equipment costs Salaries & wages: Factory equip depreciation $8,8 Advertising 4,800 $75,000 Office equip depreciation Sales and administrative Factory supervisory Assembly workers 3,000 Bad debt expense 40,000 Factory maintenance 4,800 80,000 18 Factory equip repairs Office equip repairs Factory security 2,8 legal fees for product liability case. Company was sued by someone who was injured when the statue they purchased fell on their foot. Determine the following: Total manufacturing cost Total nonmanufacturing cost Direct material cost Direct labor cost Manufacturing overhead cost Prime cost Conversion cost

Solution

CALCULATION OF MANUFACTURING COST Amount Amount Material Cost: Cement $              75,000 Labour Cost Assempbly workers $              80,000 Prime Cost (Material + Labour) $           1,55,000 Overhead Cost Indirect Materials $                 7,500 Factory Supervisory $               40,000 Factory Security $               18,000 Factory Fascility Cost $               60,000 Factory Equi depre $               58,800 Factory maintenance $                 4,800 Factory Equipm Repair $                 2,400 Insurance - Factory $                 2,400 $           1,93,900 Total Manufacturing Cost $           3,48,900 CALCULATION OF NONMANUFACTURING COST Sales and admin Supplies $                 6,000 Sales and administrative Wages $               75,000 Fascility cost - Sales and admin $               25,000 Offuce Equip Depre $                 3,000 Offuce Equip Repair $                 2,800 Professional Service $                 4,600 Insurance - Other $                 1,200 Freight Out $                 1,000 Advertising $                 4,800 Bad Debt Expebses $                     800 $           1,24,200 Answers = total Manufacturing Cost = $           3,48,900 total Non-Manufacturing Cost = $           1,24,200 Direct Material Cost $              75,000 Direct Labour Cost $              80,000 Manufacturing Overhead Cost $           1,93,900 Prime Cost $           1,55,000 Conversion Cost (Labour + Ovehead Cost) $           2,73,900