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
Prod 400000 DM cost $3 DL 24 moh v 1.80 F 4.50 products 35000 DMP12000lb@$11/lb DM use10450lb DL38500HR 880500 v moh64150 FMOH152000

Amanda Deal, president of XYZ, had recently finished an arduous round of meetings with her financial staff". Those meetings dealt with the details necessary to produce an accurate

7. The Isabelle Corporation rents prom dresses in its stores across the southern United States. It has just issued a five-year, zero-coupon corporate bond at a price of $74. You ha


Using some variation of business process mapping, graph out the mango concentrate supply chain focusing on when cost is added to the supply chain. (i.e. Display/draw the process


Cost Accounting advantage and features

what is cost

please concept clear me cost accounting for example, we manufacturing any product

The assets and liabilities of Amos Moving Services at May 31, 2011, the end of the current year, and its revenue and expenses for the year are listed below.  On April 1, 2010, the