Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 29 Jul 2017 My Price 11.00

Enterprises, Inc.

Preparing  operating Budgets

P1. Enterprises, Inc.’s principal product is a hammer that carries a lifetime guarantee. Cost and production data for the hammer follow.

 

Direct materials:

Anodized steel: 1 kilograms per hammer at $2 per kilogram

Leather strapping for the handle: 0.5 square meter per hammer at $4 per square meter

Direct labor:

Forging operation: $24 per labor hour; 6 minutes per hammer

Leather-wrapping operation: $20 per direct labor hour; 12 minutes per hammer

Overhead:

Forging operation: rate equals 40 percent of department’s direct labor dollars Leather-wrapping operation: rate equals 60 percent of department’s direct labor dollars

 

In October, November, and December, Enterprises expects to produce 108,000, 104,000, and 100,000 hammers, respectively. The company has no beginning or ending balances of direct materials inventory or work in process inventory for the year.

reQUIreD

1.    For the three-month period ending December 31, prepare monthly production cost information for the hammer. Classify the costs as direct materials, direct labor, or overhead, and show your computations.

2.    Prepare a cost of goods manufactured budget for the hammer. Show monthly cost data and combined totals for the quarter for each cost category.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 29 Jul 2017 12:07 PM My Price 11.00

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