Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture. |
Required: |
1. |
Classify the following manufacturing costs of Business Solutions by behavior and traceability. |
Product Costs | Cost by Behavior | Cost by Traceability |
1. Monthly flat fee to clean workshop | (Click to select)VariableFixed | (Click to select)IndirectDirect |
2. Laminate coverings for desktops | (Click to select)FixedVariable | (Click to select)DirectIndirect |
3. Taxes on assembly workshop | (Click to select)FixedVariable | (Click to select)DirectIndirect |
4. Glue to assemble workstation component parts | (Click to select)FixedVariable | (Click to select)IndirectDirect |
5. Wages of desk assembler | (Click to select)VariableFixed | (Click to select)IndirectDirect |
6. Electricity for workshop | (Click to select)VariableFixed | (Click to select)IndirectDirect |
7. Depreciation on tools | (Click to select)VariableFixed | (Click to select)IndirectDirect |
Direct materials: $2,600 |
Factory overhead: $550 |
Direct labor: $900 |
Beginning goods in process: none (December 31, 2011) |
Ending goods in process: $550 (January 31, 2012) |
Beginning finished goods inventory: none (December 31, 2011) |
Ending finished goods inventory: $370 (January 31, 2012) |
2. |
Assume the above manufacturing costs. Prepare a manufacturing statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) |
Business Solutions | |
Manufacturing Statement | |
For Month Ended January 31, 2012 | |
(Click to select)Less: Goods in process, January 31, 2012Direct laborAdd: Goods in process, December 31, 2011Direct materialsFactory overhead costs | $ |
(Click to select)Add: Goods in process, December 31, 2011Direct laborLess: Goods in process, January 31, 2012Factory overhead costsDirect materials | |
(Click to select)Direct laborDirect materialsAdd: Goods in process, December 31, 2011Less: Goods in process, January 31, 2012Factory overhead costs | |
Total manufacturing costs | |
(Click to select)Less: Goods in process, January 31, 2012Add: Goods in process, December 31, 2011Cost of goods manufacturedFactory overhead costsDirect labor | |
Total cost of goods in process | |
(Click to select)Factory overhead costsLess: Goods in process, January 31, 2012Add: Goods in process, December 31, 2011Direct laborCost of goods manufactured | |
(Click to select)Add: Goods in process, December 31, 2011Direct laborFactory overhead costsLess: Goods in process, January 31, 2012Cost of goods manufactured | $ |
3. |
Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) |
Business Solutions | |
Partial Income Statement | |
For Month Ended January 31, 2012 | |
(Click to select)Goods available for saleFactory overhead costsFinished goods inventory, December 31, 2011Cost of goods manufacturedLess: Finished goods inventory, January 31, 2012 | $ |
(Click to select)Factory overhead costsFinished goods inventory, December 31, 2011Less: Finished goods inventory, January 31, 2012Cost of goods manufacturedGoods available for sale | |
(Click to select)Finished goods inventory, December 31, 2011Goods available for saleDirect laborFactory overhead costsCost of goods manufactured | |
(Click to select)Factory overhead costsLess: Finished goods inventory, January 31, 2012Finished goods inventory, December 31, 2011Cost of goods manufacturedDirect labor | |
Cost of goods sold | $ |
Req 1: | ||||||||
Product Cost | Cost By behaviour | Cost By traceability | ||||||
1. Monthly Flat fee to cleanupp | Fixed | Indirect | ||||||
2. laminate covering for desktop | variable | Direct | ||||||
3. taxes on assembly workshop | Fixed | Indirect | ||||||
4. Glue for assemble workshop component | variable | Indirect | ||||||
5. Wages for desk assembler | variable | Direct | ||||||
6. Electricity of Workshop | Fixed | Indirect | ||||||
7. Depreciation on tools | Fixed | Indirect | ||||||
Req 2: | ||||||||
MANUFACTURING STATEMENT | ||||||||
Direct material | 2600 | |||||||
Direct Labour | 900 | |||||||
Factory Overheads | 550 | |||||||
Total manufacturing cost | 4050 | |||||||
Add: Beginning in process | 0 | |||||||
Total cost of goods in process | 4050 | |||||||
Less: Ending Good in process | 550 | |||||||
Cost of Goods manufactured | 3500 | |||||||
Req 3: | ||||||||
PARTIAL INCOME STATEMENT | ||||||||
Cost of Goods manufactured | 3500 | |||||||
Add: Beginning Inventory of FG | 0 | |||||||
Cost of Goods available for sale | 3500 | |||||||
Less: Ending finished Goods inventory | 370 | |||||||
Cost of Goods sold | 3130 | |||||||
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