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
what is a cost sheet? what are its advantages?

#question.discuss the importance of cost classification to a business organisation?

Accrued liabilities show expenses or obligations incurred in the earlier accounting period but the payment for similar will be made in the subsequent period. In several cases where

Cost Element Stage 1. Cost Elements The raw data concern with Labour, Expenses, and Materials are gathered from Invoices, Payroll, and Requisitions and Goods Issued Notes


A forecasted increase in metal prices has encouraged the ABC Resource Company to consider the expansion of the capacity in one of its mine operations in Northern Ontario. For this

Place a prepared slide of Giardia first under tlie low power and then under the high power of the microscope and observe tlie followilig characters. i) Bilaterally symmetrical

The budgeted and actual revenues and expenditures of Seaside Township for a recent year (in millions) were as presented in the schedule that follows: 1. Prepare journal entries

A manufacturing company wants to package its product in a rectangular box with a square base and a volume of 32 cubic inches. The cost of the material used for the top is $.05 squa

Two firms compete in a homogenous product market where the inverse demand function is P = 10 - 2Q (quantity is measured in millions). Firm 1 has been in business for 1 year, while