Accounting Ch16 Ex

Ex 16. 2 (Basic Types of Manufacturing Costs) Into which of the three elements of manufacturing cost would each of the side by side(p) be classified? a. Tubing used in manufacturing bicycles. b. Wages paid by an auto liquid manufacturer to employees who test-drive completed automobiles. c. Property taxes on machinery. d. Gold bullion used by a jewelry manufacturer. e. Wages of assembly-line workers who package frozen food. f. earnings of plant superintendent. g. Electricity used in factory operations. h. Salary of nurse in a factory first-aid station. Ex. 16. 3 (Product Costs and Period Costs)Indicate whether each of the following should be considered a product cost or a period cost. If you identify the item as a product cost, also indicate whether it is a direct or an indirect cost. For example, the answer to item 0 is indirect product cost. Begin with item a. 0. Property taxes on factory building. a. Cost of governance of hazardous waste materials to a chemical plant. b. Amount s paid by a mobile home manufacturer to a subcontractor who installs plumbing in each mobile home. c. Depreciation on sales showroom fixtures. d. Salaries of security guards in an administrative office building. e.Salaries of factory security guards. f. Salaries of office workers in the credit department. g. Depreciation on the raw materials warehouse. h. Income taxes on a profitable manufacturing company. Ex. 16. 5 (Preparing a Schedule of the Cost of Finished Goods Manufactured) The accounting records of NuTronics, Inc. , include the following information for the year cease December 31, 2007. Dec. 31 Jan. 1 Inventory of materials $ 24,000 $ 20,000 Inventory of work in process 8,000 12,000 Inventory of finished goods 90,000 80,000 Direct materials used 210,000 Direct labor 120,000 sell expenses 170,000 General and administrative expenses 140,000 Overhead is assigned to production at $192,000. a. Prepare a schedule of the cost of finished goods manufactured. (Not all of the da ta given to a higher place are used in this schedule. ) b. Assume that the company manufactures a single product and that 20,000 units were completed during the year. What is the average per-unit cost manufacturing this product? Ex 16. 9 (Preparing an Income avowal Using the Cost of Finished Goods Manufactured) Mayville Company, a sole proprietorship, reports the following information pertaining to its operating activities Ending Balance Beginning BalanceMaterials Inventory $ 20,000 $ 40,000 Work in Process Inventory 29,000 60,000 Finished Goods Inventory 52,000 42,000 During the year, the company purchased $30,000 of direct materials and incurred $21,000 of direct labor costs. Total manufacturing overhead for the year amounted to $18,000. Selling and administrative expenses amounted to $60,000, and the companys annual sales amounted to $200,000. a. Prepare Mayvilles schedule of the cost of finished goods manufactured. b. Prepare Mayvilles income statement (ignore income taxes).