accounting
void50
act_ct-1.docxClassification of Costs and Income Statement
|
a. |
Wages paid to Jewelry workers |
$ 1,200,000 |
|
b. |
Utilities in the administrative area |
300,000 |
|
c. |
Depreciation on chain linking machinery utilized in the plant |
200,000 |
|
d. |
Silver, gold, and gemstones used in producing necklaces |
4,000,000 |
|
e. |
Company attorney's salary |
150,000 |
|
f. |
Lease rental charge on forklift for material and finished goods handling |
10,000 |
|
g. |
Telephone expense for customer service office |
20,000 |
|
h. |
Wages of plant heating and cooling technicians |
100,000 |
|
i. |
Utilities for the assembly area of the plant |
250,000 |
|
j. |
Maintenance on computers utilized in the administrative assistant’s office |
1,500 |
|
k. |
Salary paid to the CEO |
200,000 |
|
l. |
Fine paid for introducing cyanide into the local water supply |
1,000,000 |
|
m. |
Signature red jewelry boxes used for packaging |
50,000 |
|
n. |
Expedited freight of product to major customer |
50,000 |
Instructions:
Classify the costs and total by classification. Assume Felix’s Fine Jewelry’s revenue for the period was $8,000,000 and there is no change in ending inventory. Prepare an operating income statement that shows the deductions of expense in terms of total classification by category: direct materials, direct labor, manufacturing overhead, or period costs.
Provide your answers in clearly organized Excel spreadsheet. Refer to your text to aid you in this assignment.
