ACC 560 Managerial Accounting

Ikerd Company is a manufacturer of personal computers. Various costs and expenses associated with its operations are as follows. The company intends to classify these costs and expenses into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead, and (d) period costs. For each item, indicate the cost category to which it belongs.

Item Category

1-Property taxes on the factory building.

2-Production superintendents’ salaries.

3-Memory boards and chips used in assembling computers.

4-Depreciation on the factory equipment.

5-Salaries for assembly-line quality control inspectors.

6-Sales commissions paid to sell personal computers.-

7-Electrical components used in assembling computers

8-Wages of workers assembling personal computers.

9-Soldering materials used on factory assembly lines.

10-Salaries for the night security guards for the factory building.

Exercise 1-8 (Part Level Submission)

Lopez Corporation incurred the following costs while manufacturing its product.

Materials used in product $120,000 Advertising expense $45,000

Depreciation on plant 60,000 Property taxes on plant 14,000

Property taxes on store 7,500 Delivery expense 21,000

Labor costs of assembly-line workers 110,000 Sales commissions 35,000

Factory supplies used 23,000 Salaries paid to sales clerks 50,000

Work in process inventory was $12,000 at January 1 and $15,500 at December 31. Finished goods inventory was $60,000 at January 1 and $45,600 at December 31.

a- Compute cost of goods manufactured.

b-

Exercise 1-8 (Part Level Submission)

Lopez Corporation incurred the following costs while manufacturing its product.

Materials used in product $120,000 Advertising expense $45,000

Depreciation on plant 60,000 Property taxes on plant 14,000

Property taxes on store 7,500 Delivery expense 21,000

Labor costs of assembly-line workers 110,000 Sales commissions 35,000

Factory supplies used 23,000 Salaries paid to sales clerks 50,000

Work in process inventory was $12,000 at January 1 and $15,500 at December 31. Finished goods inventory was $60,000 at January 1 and $45,600 at December 31.

a- Prepare a cost of goods manufactured schedule for June 2014.

b-

Exercise 1-16 (Part Level Submission)

An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2014.

Inventories

Beginning

Ending

Raw materials $9,000 $13,100

Work in process 5,000 7,000

Finished goods 9,000 8,000

Costs incurred: raw materials purchases $54,000, direct labor $47,000, manufacturing overhead $19,900. The specific overhead costs were: indirect labor $5,500, factory insurance $4,000, machinery depreciation $4,000, machinery repairs $1,800, factory utilities $3,100, miscellaneous factory costs $1,500. Assume that all raw materials used were direct materials.

a- Prepare the cost of goods manufactured schedule for the month ended June 30, 2014.

b-

Problem 1-1A (Part Level Submission)

Lott Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Lott’s monthly manufacturing cost and other expense data are as follows.

Rent on factory equipment $9,000

Insurance on factory building 1,500

Raw materials (plastics, polystyrene, etc.) 75,000

Utility costs for factory 900

Supplies for general office 300

Wages for assembly line workers 53,000

Depreciation on office equipment 800

Miscellaneous materials (glue, thread, etc.) 1,100

Factory manager’s salary 5,700

Property taxes on factory building 400

Advertising for helmets 14,000

Sales commissions 10,000

Depreciation on factory building 1,500

a- Prepare an answer sheet with the following column headings. Enter each cost item on your answer sheet, placing the dollar amount under the appropriate headings. Total the dollar amounts in each of the columns

b-

Problem 1-4A (Part Level Submission)

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2014.

Raw Materials Inventory 7/1/13 $48,000 Factory Insurance $4,600

Raw Materials Inventory 6/30/14 39,600 Factory Machinery Depreciation 16,000

Finished Goods Inventory 7/1/13 96,000 Factory Utilities 27,600

Finished Goods Inventory 6/30/14 75,900 Office Utilities Expense 8,650

Work in Process Inventory 7/1/13 19,800 Sales Revenue 534,000

Work in Process Inventory 6/30/14 18,600 Sales Discounts 4,200

Direct Labor 139,250 Plant Manager’s Salary 58,000

Indirect Labor 24,460 Factory Property Taxes 9,600

Accounts Receivable 27,000 Factory Repairs 1,400

Raw Materials Purchases 96,400

Cash 32,000

a- Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct materials.)

b-

c-