Question :
167
Kwik Delivery Service reports the following costs and expenses in : 1311597
167
Kwik Delivery Service reports the following costs and expenses in June 2013.
Indirect materials$ 8,400Driver’s salaries$14,000
Depreciation on deliveryAdvertising5,100
equipment11,200Delivery equipment
Dispatcher’s salary5,000repairs300
Property taxes on officeOffice supplies650
building870Office utilities1,490
CEO’s salary12,000Repairs on office
Gas and oil for delivery trucks3,200equipment180
Instructions
Determine the total amount of (a) delivery service (product) costs and (b) period costs.
168
For each item listed below, indicate in the space to the left whether the item would be considered a product cost or a period cost for a manufacturing company. Use the following code:
Pr=Product cost
Pe=Period cost
____ 1.Factory supervisory salaries
____ 2.Sales commissions
____ 3.Income tax expense
____ 4.Indirect materials used
____ 5.Indirect labor
____ 6.Office salaries expense
____ 7.Property taxes on factory building
____ 8.Sales manager’s salary
____ 9.Factory wages expense
____ 10.Direct materials used
169
Yates Manufacturing Company incurs the following manufacturing costs and expenses during the month of May.
1. Assembly line wages
2. Raw materials used directly in product
3. Depreciation on office equipment
4. Property taxes on factory building
5. Rent on factory building
6. Sales commissions
7. Depreciation on factory equipment
8. Factory utilities
9. Wages for factory maintenance workers
10. Advertising
11. Indirect materials used in production
12. Factory manager’s salary
Ex. 169.(Cont.)
Instructions
Complete the following matrix by placing an X mark under the appropriate headings.
Direct DirectManufacturingPeriod
Cost ItemMaterialsLabor Overhead Costs
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
170
Presented below are incomplete 2013 manufacturing cost data for Tardy Corporation.
Direct Materials Used
Direct Labor
Manufacturing Overhead
Total Manufacturing Costs
Work in Process (1/1)
Work in Process (12/31)
Cost of Goods Manufactured
(a)
$38,000
$80,000
$48,000
?
$120,000
$96,000
?
(b)
$149,000
$53,000
$90,000
$292,000
?
$98,000
$311,000
(c)
$53,000
$116,000
$121,000
$290,000
$403,000
?
$515,000
Instructions
Determine the missing amounts.
171
Among the items that Howard Print Shop accounts for are the following:
1. Direct labor
2. Office supplies used
3. Depreciation on printing machines
4. Finished goods inventory, 12/31
5. Raw materials inventory, 1/1
6. Cost of goods manufactured
7. Work in process, 1/1
8. Office supplies inventory, 12/31
9. Indirect labor
10. Heat and electricity for the print shop
Howard Print Shop prepares the following schedule and financial statements on a yearly basis:
(a)Cost of goods manufactured schedule.
(b)Income statement.
(c)Balance sheet.
Instructions
For each item, indicate by using the appropriate letter(s) the schedule and/or financial statements in which the item will appear.
