Question

Flow of Costs and Income Statement Ginocera Inc. is a designer, manufacturer, and distributor of low-cost,...

Flow of Costs and Income Statement

Ginocera Inc. is a designer, manufacturer, and distributor of low-cost, high-quality stainless steel kitchen knives. A new kitchen knife series called the Kitchen Ninja was released for production in early 20Y8. In January, the company spent $355,200 to develop a late-night advertising infomercial for the new product. During 20Y8, the company spent $828,800 advertising the product through these infomercials. In addition, the company incurred $355,000 in legal costs. The knives were ready for manufacture on January 1, 20Y8.

Ginocera uses a job order cost system to accumulate costs associated with the kitchen knife. The unit direct materials cost for the knife is as follows:

Hardened steel blanks (used for knife shaft and blade) $1.80
Wood (for handle) 0.60
Packaging 0.60

The production process is straightforward. First, the hardened steel blanks, which are purchased directly from a raw material supplier, are stamped into a single piece of metal that includes both the blade and the shaft. The stamping machine requires one hour per 720 knives.

After the knife shafts are stamped, they are brought to an assembly area where an employee attaches the handle to the shaft and packs the knife in a decorative box. The direct labor cost is $0.25 per unit.

The knives are sold to stores. Each store is given promotional materials such as posters and aisle displays. Promotional materials cost $40 per store. In addition, shipping costs average $0.25 per knife.

Total completed production was 296,000 units during the year. Other information is as follows:

Number of customers (stores) 12,600
Number of knives sold 251,600
Wholesale price (to store) per knife $16

Factory overhead cost is applied to jobs at the rate of $360 per stamping machine hour after the knife blanks are stamped. There were an additional 74,000 stamped knives, handles, and cases waiting to be assembled on December 31, 20Y8.

In your computations, if required, round interim per unit costs to two decimal places.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ginocera Inc. is a designer, manufacturer, and distributor of low-cost, high-quality stainless steel kitchen knives. A...
Ginocera Inc. is a designer, manufacturer, and distributor of low-cost, high-quality stainless steel kitchen knives. A new kitchen knife series called the Kitchen Ninja was released for production in early 2016. In January, the company spent $600,000 to develop a late-night advertising infomercial for the new product. During 2016, the company spent $1,402,000 promoting the product through these infomercials, and $819,000 in legal costs. The knives were ready for manufacture on January 1, 2016. Ginocera uses a job order cost...
Price Discrimination, Customer Costs Jorell, Inc., manufactures and distributes a variety of labelers. Annual production of...
Price Discrimination, Customer Costs Jorell, Inc., manufactures and distributes a variety of labelers. Annual production of labelers averages 400,000 units. A large chain store purchases about 30 percent of Jorell's production. Several thousand independent retail office supply stores purchase the other 70 percent. Jorell incurs the following costs of production per labeler: Direct materials $9.35 Direct labor 2.65 Overhead 3.55   Total $15.55 Jorell has two salespeople assigned to the chain store account at a cost of $51,900 each per year....
Price Discrimination, Customer Costs Jorell, Inc., manufactures and distributes a variety of labelers. Annual production of...
Price Discrimination, Customer Costs Jorell, Inc., manufactures and distributes a variety of labelers. Annual production of labelers averages 440,000 units. A large chain store purchases about 30 percent of Jorell's production. Several thousand independent retail office supply stores purchase the other 70 percent. Jorell incurs the following costs of production per labeler: Direct materials $8.90 Direct labor 2.60 Overhead 3.00   Total $14.50 Jorell has two salespeople assigned to the chain store account at a cost of $57,800 each per year....
Price Discrimination, Customer Costs Jorell, Inc., manufactures and distributes a variety of labelers. Annual production of...
Price Discrimination, Customer Costs Jorell, Inc., manufactures and distributes a variety of labelers. Annual production of labelers averages 445,000 units. A large chain store purchases about 30 percent of Jorell's production. Several thousand independent retail office supply stores purchase the other 70 percent. Jorell incurs the following costs of production per labeler: Direct materials $8.35 Direct labor 2.50 Overhead 3.45   Total $14.30 Jorell has two salespeople assigned to the chain store account at a cost of $56,200 each per year....
Technology Accessories Inc. is a designer, manugacturer, and Distributor of accessories for consumer electronica products. Early...
Technology Accessories Inc. is a designer, manugacturer, and Distributor of accessories for consumer electronica products. Early in 2013, the company begin production of a leather cover for tablet computers, call the ileather. The cover is made of stitched leather with a velvet interior and fits snugly around most tablet computers. In January, $750,000 was spent on developing marketing and advertising materials. For the first six months of 2013, the company spent an additional $1,400,00 promoting the ileather. The product was...
1) The variable costing income statement format shows costs separated by cost behaviour rather than function....
1) The variable costing income statement format shows costs separated by cost behaviour rather than function. TRUE or FALSE 2) The absorption costing format is best for internal decision-making. TRUE or FALSE 3) XYZ Inc. sells a single product for $20 per unit. Direct materials costs were $6 per unit, while direct labour and variable manufacturing overhead costs were $3 and $2 respectively. Fixed manufacturing overhead costs amount $20,000 per month. The company has a practical production capacity of 10,000...
1.A soft drink bottler incurred the following factory utility cost: $4,046 for 910 cases bottled and...
1.A soft drink bottler incurred the following factory utility cost: $4,046 for 910 cases bottled and $4,109 for 1,010 cases bottled. Factory utility cost is a mixed cost containing both fixed and variable components. The variable factory utility cost per case bottled is closest to: $4.45 $4.07 $4.25 $0.63 2.The following cost data pertain to the operations of Rademaker Department Stores, Inc., for the month of March: Corporate headquarters building lease $ 92,000 Cosmetics Department sales commissions-Northridge Store $ 6,400...
Budgeted Income Statement and Supporting Budgets The budget director of Birds of a Feather Inc., with...
Budgeted Income Statement and Supporting Budgets The budget director of Birds of a Feather Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for January: Estimated sales for January:   Bird house 6,000 units at $55 per unit   Bird feeder 4,500 units at $75 per unit Estimated inventories at January 1: Direct materials:   Wood 220 ft.   Plastic 250 lbs. Finished products:   Bird house 300...
Budgeted Income Statement and Supporting Budgets The budget director of Feathered Friends Inc., with the assistance...
Budgeted Income Statement and Supporting Budgets The budget director of Feathered Friends Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for December: Estimated sales for December: Bird house 3,200 units at $50 per unit Bird feeder 3,000 units at $70 per unit Estimated inventories at December 1: Direct materials: Wood 200 ft. Plastic 240 lbs. Finished products: Bird house 320 units at...
Budgeted Income Statement and Supporting Budgets The budget director of Birds of a Feather Inc., with...
Budgeted Income Statement and Supporting Budgets The budget director of Birds of a Feather Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for January: Estimated sales for January:   Birdhouse 6,000 units at $55 per unit   Bird feeder 4,500 units at $75 per unit Estimated inventories at January 1: Direct materials:   Wood 220 ft.   Plastic 250 lb. Finished products:   Birdhouse 300 units at...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • Considering only the effect of diffraction, and assuming that the resolution is equal to the deBroglie...
    asked 10 minutes ago
  • Explain in detail: the Arias Intensity which is a single-parameter measure of ground motion intensity.
    asked 12 minutes ago
  • A 3.00-kg block is sent up a ramp of angle θ equal to 43.0° with an...
    asked 12 minutes ago
  • Dr. Clint wanted to predict the effects of gender on diastolic blood pressure (quantitative measure) among...
    asked 32 minutes ago
  • Write a refusal letter based on the following scenario: You were recently invited by the Department...
    asked 32 minutes ago
  • Two ships are on a collision course. At noon, ship A is positioned 88 nautical miles...
    asked 48 minutes ago
  • One-sample t test ------------------------------------------------------------------------------ Variable |     Obs        Mean    Std. Err.   Std. Dev.   [95% Conf
    asked 52 minutes ago
  • Solow Company was just awarded a patent on a highly-specialized device. The engineer has set a...
    asked 1 hour ago
  • A ball with mass M, moving horizontally at 5.4 m/s, collides elastically with a block with...
    asked 1 hour ago
  • Explain Inelastic Design Spectrum in detail according to Newmark-Hall Method.
    asked 1 hour ago
  • In a certain survey, respondents were asked if they ever hesitated to give a handshake because...
    asked 1 hour ago
  • Create an activity diagram of the Request For Proposal (RFP)/Proposal interaction between a potential customer and...
    asked 2 hours ago