Managerial Accounting

Ohno 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). Ohno's monthly manufacturing cost and other expense data are as follows

Instructions

  1. 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.
  2. Compute the cost to product one helmet

Bell company, a manufacturer of audio systems, started its production in October 2020. Fort the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets. Bell decided to turn its retail store into an audio equipment factory.

Raw materials cost for an audio system will total $74 per unit. Workers on the production lines are on average paid $12 per hour. An audio system usually takes 5 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $4,900 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is $3,000.

Factory janitorial costs are $1,300 monthly. Advertising costs for the audio system will be $9,500 per month. The factory building depreciation expense is $7,800 per year property taxes on the factory building will be $9,0000 per year.

Instructions

  1. Prepare an answer sheet with the following column headings.

    Assuming that Bell manufactures, on average, 1,500 audio systems per month, entereach cost item on year answersheeet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns
  2. Compute the cost to produce one audio system

Incomplete manufactures costs, expenses, and selling data for two different cases are as follows

Instructions

  1. Indicate the missing amount for each letter..
  2. Prepare a condensed cost fo goods manufactured schedule for Case 1.
  3. Prepare an income statement and the current assets section of the balance sheet for Case 1. Assume that in case the other items in the current assets section are as follows Cash $3,000, Receivables (net) $15,000, Raw materials $600,and Prepare Expenses $400.

The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2020

Instructions

  1. Prepare a cost of goods manufactured schedule (Assume all raw materials used were direct materials.)
  2. Prepare an income statement through gross profit.
  3. Prepare the current assets section of the balance sheet at June 30, 2021

Empire Company is a manufacturer of smartphones. Its controller resigned in October 2020. An inexperienced assistant account has prepared the following income statement for the month of October 2020.
  1. Inventory balances at the beginning and end of October were:
  2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities

Instructions

  1. Prepare a schedule of cost of goods manufactured for October 2020.
  2. Prepare an correct income statement for October 2020.

Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its factory.
  1. Salaries for assemble line inspectors.
  2. Insurance on factory machines
  3. Property taxes on the factory building.
  4. Factory repairs.
  5. Upholstery used in manufacturing furniture.
  6. Wages paid to assemble line workers.
  7. Factory machinery depreciation.
  8. Glue, nails, paint, and other small parts used in products.
  9. Factory supervisors' salaries.
  10. Wood used in manufacturing furniture.

Instructions

Classify the above items into the following categories: (a) Direct materials, (b) Direct labor, and (c) Manufacturing overhead.

Trak Corporation incurred the following costs while manufacturing its bicycles.

Instructions

  1. Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs.
  2. Explain the basic difference in accounting for product costs and period costs.

Knight Company reports the following costs and expenses in May.

Instructions

From the information, determine the total amount of:

  1. Manufacturing Overhead
  2. Product Costs
  3. Period Costs

Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows.
  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 laptop computers.
  7. Electrical components used in assembling computers.
  8. Wages of workers assembling laptop computers.
  9. Soldering materials used on factory assembly lines.
  10. Salaries for the night security guards for the factory building.

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

Instructions

List the items (1) through (10). For each item, indicate the cost category to which it belongs.

The administrators of Crawford Country's Memorial Hospital are interested in identifying the Various costs and expenses that are incurred in producing a patient's X-ray. A list of such costs and expenses is presented below.
  1. Salaries for the X-ray machine technicians.
  2. Wages for the hospital janitorial personnel
  3. Film costs for the X-ray machines
  4. Property taxes on the hospital building.
  5. Salary of the X-ray technicians' supervisor.
  6. Electricity costs for the X-ray department.
  7. Maintenance and repairs on the X-ray machines.
  8. X-ray department supplies.
  9. Depreciation on the X-ray department equipment.
  10. Depreciation on the hospital building.

The administrator want these costs and expenses classified as (a) Direct materials, (b) Direct labor, or (c) Service overhead

Instructions

List the items (1) through (10). For each item, indicate the cost category to which it belongs.

 
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