Additional Ch2 Problems Solutions

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School

Algonquin College**We aren't endorsed by this school

Course

ACC 2354

Subject

Accounting

Date

Jan 15, 2025

Pages

Uploaded by CountSteel15773

Question 1The accounting records of Birch Company revealed the following costs, among others: a. Property taxes on factory29,000b. Indirect materials used56,000c. Customer shipping costs15,000d. Wages of production employees45,000e. Depreciation on administrative equipment22,000f. Production equipment rental costs62,000REQUIRED:Calculate total manufacturing overhead.Property taxes on factory29,000Indirect materials usedd56,000Wages of production employees45,000Production equipment rental costs62,000Total Manufacturing Overhead192,000Question 2Consider the following items:A. Commissions paid to Coca-Cola's salespeopleB. Wages of assembly-line workers at a Toyota plantC. Insurance costs related to a Domtar Lumber manufacturing plantD. Advertising costs incurred by Mitel on promotion campaignE. Tomatoes used in the manufacture of Heinz ketchupREQUIRED:ItemProductPeriodVariableFixedAXXBXXCXXDXXEXXComplete the table that follows and classify each of the costs listed as (1) a product or period cost and (2) a variable or fixed cost by placing an "X" in the appropriate column.Product or Period CostVariable or Fixed Cost

QUESTION 3Variable costs per unit:Annual fixed costs:Direct materials$25Manufacturing O/H$400,000Direct labour35Selling & administrative140,000Manufacturing overhead60$120REQUIRED:Determine the cost of the finished goods inventory.VC2,400,000FC400,000Total product cost2,800,00020,000Cost per unit140$ # units in FG3000Ending FG Inventory420,000$ QUESTION 4Selected ledger accounts for Tamarack Company are given below for the just completed year:Open 30,000420,000390000Ending 60,000Open70,00010,000DM 320,000810,000179,000DL 110,000175,000O/H 400,000Ending ? 6,00040,000? ? ? Ending 130,000REQUIRED: 1.320,0002.70,0003.65,0004.810,0005.720,00018,00090,000How much of the factory labour cost for the year consisted of indirect labour?What was the cost of goods manufactured for the year?What was the cost of goods sold for the year 6.If $32,000 of the ending WIP balance is direct materials cost AND $40,000 is mfg. overhead, how much of ending WIP will consist of direct labour cost? Work in Process Factory Wages PayableFinished Goods Cost of Goods Sold What was the cost of raw materials put into production during the year?How much of the materials in (1) above consisted of indirect materials?Spruce Manufacturing produced 20,000 toys and sold 17,000. It carries its finished-goods inventory at the average unit cost of production. There was no work in process at year-end. Additional data follows:Raw Materials