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ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E1-2A)
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ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E1-2A)

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ACC 560 Week 1 Homework Chapter 1 (E1-5, E1-9, E1-10 and E1-2A)

 

E1-5

E1-5 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,

(d) Period costs.

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

E1-9

E1-9 An incomplete cost of goods manufactured schedule is presented below.

Complete the cost of goods manufactured schedule for Hobbit Company.

 E1-10

E1-10 Manufacturing cost data for Copa Company arc presented below.

Case A             Case B             Case C

Direct materials used               $ (a)    $68,400           $130,000

Direct labor                              57,000 86,000                        (g)

Manufacturing overhead          46,500 81,600                        102,000

Total manufacturing costs        195,650 (d)                 253,700

 Work in process 1/1/17           (b)       16,500                        (h)

Total cost of work in proems   221,500 (c)                 337,000

Work in process 12/31/17        (c)        11,000             70,000

Cost of goods manufactured    185,275 (f)                  (i)

Instructions

Indicate the missing amount for each letter (a) through (i).

E1-2A

E1, 2A Bell Company, a manufacturer of audio systems, started its production in October, 2017. For 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 cast 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 amount 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 casts arc $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 $9,000 per year.

Instructions

 (a) Prepare an answer sheet with the following column headings. Assuming that Bell manufactures, on average, 1,500 audio systems per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns.

(b) Compute the cost to produce one audio system.

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