total manufacturing costs of $528,000, manufacturing overhead totaling $78,000,
ID: 2436472 • Letter: T
Question
total manufacturing costs of $528,000, manufacturing overhead totaling $78,000, and direct materials totaling $96,000. How much is direct labor cost? a. Cannot be determined from the information provided. b. $276,000 c. $624,000 d. $354,000 Sales commissions are dlassified as a. overhead costs b. period costs. c. product costs. d. indirect labor 9. stock and 50,000 shares of $1 par value directors declared and paid red and paid. What are the dividends received by 10. Bodkin Inc. has 5,000 shares of 6%, $100 par value, cumulative preferred s common stock outstanding at December 31, 2016, and December 31, 2017. The board of a $25,000 dividend in 2016. In 2017, $65,000 of dividends are decla the preferred and common shareholders in 2017? Preferred 40,000 $30,000 32,500 $35,000 $25,000 a. b. $35,000 c. $32,500 d. $30,000 11. Cost of goods manufactured is calculated as follows: a. Beginning WIP+direct materials used+direct labor+ manufacturing overhead + ending b. Beginning WIP +direct materials used + direct labor + manufacturing overhead ending WIP. WIP. c. Direct materials used + direct labor+ manufacturing overhead-beginning WIP+ ending WIP d. Direct materials used+ direct labor+manufacturing overhead- ending WIP-beginn ing WIP 12. A manufacturing company reports cost of goods manufactured as a(n) current asset on the balance sheet. b. component in the calculation of cost of goods sold on the income statement c. component of the raw materials inventory on the balance sheet d. administrative expense on the income statement a. 13. Which of the following is not a manufacturing cost category? Cost of goods sold a. b. c. d. Direct materials Direct labor Manufacturing overhead 14. Which one of the following would not be classified as manufacturing overhead? a. Indirect labor b. Direct materials Insurance on factory building Indirect materials c. d. 15. The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is a. indirect materials. b. direct labor c. manufacturing overhead. d. indirect labor.Explanation / Answer
Solution 8:
Direct labor cost = Total manufacturing cost - Direct material cost - Manufacturing overhead
= $528,000 - $96,000 - $78,000 = $354,000
Hence option d is correct.
Solution 9:
Sales commissions are classified as period costs. Hence option b is correct.
Solution 10:
Annual dividend for preferred shareholders = 5000 * $100 * 6% = $30,000
Dividend paid in 2016 = $25,000
Dividend in arrear for preferred shareholder in 2016 = $30,000 - $25,000 = $5,000
Total dividend paid in 2017 = $65,000
Dividend to preferred shareholders for 2017 = Current dividend + Dividend in arrears = $30,000 +$5,000 = $35,000
Dividend to common shareholders for 2017 = $65,000 - $35,000= $30,000
Hence option b is correct.
Solution 11:
Cost of goods manufactured = Beginning WIP + Direct material used + Direct labor + Manufacturing overhead - Ending WIP
Hence option b is correct.
Solution 12:
A manufacturing company reports cost of goods manufactured as an component in the calculation of cost of goods sold on the income statement.
Hence option b is correct.
Solution 13:
Cost of goods sold is not manufacturing cost category. Hence option a is correct.
Solution 14:
Direct materials would not be classified as manufacturing overhead. Hence option b is correct.
Solution 15:
The work of factory employees that can be physically and directly associated with converting raw materials into finished good is "Direct labor".
Hence option b is correct.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.