Week 1 Assignment coming from Textbook: Chapter 16
July 6th, 2015
Simple Exercise 18. 9 – Prime versus Conversion costs
Star Fixes Co. does all the repair work for a medium-sized maker of handheld computer games. The games will be sent straight to Star, along with the games are restored. Star charges the game producer for price plus a 20% markup. In the month of February, acquisitions of parts (replacement parts) by Legend amounted to $97, 000, the beginning products on hand of parts was $38, 500, as well as the ending products on hand of parts was $15, 250. Obligations to repair professionals during the month of Feb . totaled $52, 500. Expense incurred was $121, 1000.
a. The thing that was the cost of components used for restoration work during the month of February? $120, 250. b. What was the best cost pertaining to February? $173, 020.
c. What was the conversion price for Feb? $173, five-hundred.
d. The fact that was the total fix cost to get February? $293, 750.
Work out 16. 1 - Accounting Terminology
Work in Process Products on hand
Cost of completed goods manufactured
Cost of Items Sold
Each one of the following transactions may (or may not) describe one of these technical terms. For every single statement, indicate the accounting term described, or answer " None” if the affirmation does not effectively describe one of the terms.
a. The planning and make use of accounting info designed to assist managers in planning and controlling the operations of a organization. Management Accounting b. Most manufacturing costs other than immediate materials employed and immediate labor. Manufacturing Overhead c. Direct materials and immediate labor used in manufacturing a product. " None” – the definition describes a first-rate cost m. A production cost that could be traced ideally and straight to manufactured products of product. Cost of Products Sold electronic. The accounts debited at that time that the Production Overhead account is acknowledged. " None” f. The quantity transferred from your Work in Procedure Inventory consideration to the Completed Goods Inventory account. Costs of completed goods created g. Costs that are debited directly to price accounts if the costs are incurred. Period Costs Exercise 16. a couple of – Standard Types of producing Costs
In which with the three elements of manufacturing cost would all the following become classified?
a. Tubing found in manufacturing bicycles. Direct Materials
b. Income paid simply by an automobile manufacturer to staff who test drive completed vehicles. Direct Labor c. Home taxes on machinery. Manufacturing Overhead
g. Gold bullion used by a jewelry manufacturer. Direct Materials e. Pay of assembly-line workers who also package iced food. Direct Labor farrenheit. Salary of plant superintendent. Manufacturing Expense
g. Electricity used in factory operations. Making Overhead h. Salary of the nurse within a factory first-aid station. Production Overhead
Workout 16. a few – Product Costs and Period Costs
Indicate if each of the pursuing should be considered a product cost or maybe a period expense. If you discover the item being a product price, also show whether it is an immediate or indirect cost. For instance , the answer to item 0 is " indirect item cost. ” Begin with item a.
1 ) Property taxation on manufacturing plant building.
a. Cost of removal of dangerous waste materials to a chemical grow. Direct Item Costs m. Amounts paid out by a mobile home producer to a subcontractor who puts plumbing in each mobile home. Direct Product Costs c. Downgrading on product sales showroom features. Direct Merchandise Costs g. Salaries of security guards within an administrative workplace. Indirect Product Costs elizabeth. Salaries of factory security guards. Indirect Item Costs farrenheit. Salaries of office workers in the credit division. Direct Product Costs g. Depreciation on the raw materials stockroom. Indirect Item Costs h. Income taxes...