Calculate cost of direct manufacturing labour, Cost Accounting

Dixon Corporation was established on January 1, Year 1.  The firm has 2 divisions, Division A and Division B.  Division A manufactures standard carpets, and Division B manufactures custom furniture.

During the first year, Division A produced one standard carpet, C450.  In the beginning of Year 2, the firm introduced the second product line, C550.  Through effective marketing, the firm is able to increase its market share.  The firm is considering introducing the 3rd product line, C650 within the next few months.

Division B had a marginally successful first year.  The Division uses normal costing in its job-order costing system with manufacturing overhead applied based on direct labour  hours.  The management realizes that  an  accurate costing system in Division B is essential for the survival of the Division.

For Division A, you have obtained the following partially completed Statement of Costs of Goods Manufactured and Sold for the month of March, Year 2.  Upon review of the books and discussions with key personnel, you are able to gather additional key information as shown below.   
 
 Incomplete Statement of Cost of Goods Manufactured and Sold for the month of March:  (all amounts in $?000s): 

Question Cost Terms:

You recognize that cost behavior is a fundamental concept used in decision-making.  With a view to understanding the behavior of the direct costs, you have gathered the following information for Division A for the month of January, Year 2.

  • Cost of goods manufactured = $280,000
  • Manufacturing costs incurred in the month = $300,000
  • Prime costs = 60% of the manufacturing costs incurred in the month
  • Conversion costs = 70% of the manufacturing costs incurred in the month

 

 

Posted Date: 2/28/2013 3:02:40 AM | Location : United States







Related Discussions:- Calculate cost of direct manufacturing labour, Assignment Help, Ask Question on Calculate cost of direct manufacturing labour, Get Answer, Expert's Help, Calculate cost of direct manufacturing labour Discussions

Write discussion on Calculate cost of direct manufacturing labour
Your posts are moderated
Related Questions
Stine Company uses a job order cost system. On May 1 st , the company has a balance in Work in Process Inventory of 3,500 and two jobs in process: Job No. 429 $2,000, and Job No. 4

some clarificationon how to compute closing stock and openning stock using marginal costing technique and absorption.


The following details are available from a company:                                                  2003                 2004                                      2003

Determine Profit by Using Absorption Costing Assuming the fixed overhead absorption rate was Ksh.3 per litre, then what would be the profit utilizing absorption costing? a)

Encik Farid, a sole trader, started his business on 1 May 2010 under the name Farid Enterprise. The following are his business transactions for the month of May a. Encik Farid b

Estimate the manufacturing cost for a bearing housing following the Formula Student Costing Scheme.  Dimensions and materials of the bearing housing will depend on your student

Assume that Banc One receives a primary deposit of $1 million. The bank must keep reserves of 20 percent against its deposits. Prepare a simple balance sheet of assets and liabilit

H Bhd has a 75% holding in the ordinary shares of S Sdn Bhd and 40% in A Sdn Bhd. Shares in S were acquired  in 2006 when its retained earnings were RM120 million.  The shares in A

In early July, Mike Gottfried purchased a $70 ticket to the December 15 game of the Chicago Titans. (The Titans belong to the Midwest Football League and play their games outdoors