Classifying Costs The following is a manufacturing cost report of Marching Ants

ID: 2339463 • Letter: C

Question

Classifying Costs The following is a manufacturing cost report of Marching Ants Inc. Evaluate and correct this report. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Materials used in production (including $50,500 of indirect materials) Direct labor (including $75,700 maintenance salaries) Factory overhead: $544,900 504,500 464,100 126,100 312,800 282,500 136,200 196,800 111,000 80,700 $2,759,600 Supervisor salaries-plant Heat, light, and power-plant Sales salaries Promotional expenses Insurance and property taxes-plant Insurance and property taxes-corporate offices Depreciation-plant and equipment Depreciation-corporate offices Total Marching Ants Inc. Manufacturing Costs Check My Work

Explanation / Answer

MARCHING ANTS INC.

Manufacturing cost

For the quarter ended June 30

Cost of direct material used in production

$ 494,900.00*

Direct labor

$ 428,800.00**

Factory Overheads

Maintenance salary

$ 75,700.00

Indirect material

$ 50,500.00

Supervisor's salary-plant

$ 464,100.00

Heat, Light and power-Plant

$ 126,100.00

Insurance and Property taxes-Plant

$ 136,200.00

Depreciation-Plant and Equipment

$ 111,000.00

Total Factory Overheads

$ 963,600.00

Total manufacturing Cost

$ 1,887,300.00

*$544900-50500

**$504500-75700