Calculate cost for a manufacturer, no inventories

The following data pertains to the Anderson table mfg company for Jan. 2003
the company made 1000 tables durning Jan, and there are no beginning or ending inventories.

wood used in production 25000

$25,000

cleaning supplies

$ 300.00

machine lubricants used in the factory
$ 100.00

factory rent

$ 2,000.00

rent on the sales office

$ 3,000.00

Sales Salaries

$ 20,000.00

production line labor cost

$ 50,000.00

plant security guard

$ 1,200.00

plant supervision

$ 2,500.00

sales office supervision

$ 3,000.00

Depereciation on production equipement
$ 4,000.00

Depereciation on sales office equipment
$ 1,000.00

$112,100

Required

what was the cost of direct material used in production durning Jan 2003 ?
what is the cost of direct labor for Jan 2003 ?

what is the cost for Manufacturing overhead for Jan 2003 ?

what is the total cost of tables manufractured in Jan 2003 ?

whatis the cost of each table manufactured in Jan 2003 ?

Do you think the cost per table is valuable information for Carole Anderson, the
companys owner?

How might she use this information

2-28

INVENTORY AND PRODUCTION COST INCLUDING COST OF GOODS
MANUFACTURED AND COST OF GOODS SOLD

The following data pertain to the Elsea MFG company for the year ended Dec 31, 2004
The company made 60,000 SW20 switching units durning 2004

Beging direct material inventory

$ 42,000.00
Ending direct material inventory

$ 48,000.00
beginning work in process inventory

$ 84,000.00
Ending work in process inventory

$ 93,000.00
Beginning finished goods inventory

$ 124,000.00
Ending finished goods inventory

$ 133,000.00
Direct materials purchased

$ 850,000.00
indirect materials used in production

$ 4,000.00
Factory supplies used

$ 6,200.00
Deprecation on the factory

$ 60,000.00
Deprecation on sales office

$ 4,000.00
Deprecation on the administrative office

$ 3,000.00
Sales Salaries

$ 120,000.00
Assembly line labor cost

$ 820,000.00
Factory security guard cost

$ 12,000.00
Factory supervision

$ 82,600.00
Depreciation on production equipment

$ 560,000.00
Depreciation on sales office equipment

$ 22,200.00

Required

what was the cost of direct material used in production durning Jan 2004 ?
what is the cost of direct labor for Jan 2004 ?

what is the cost for Manufacturing overhead for Jan 2004 ?

what is the total manufracturing cost incurred durning 2004 ?

what is the cost of goods manufractured for 2004 ?

what is the cost of goods sold for 2004 ?

1426+6

1924853687

To calculate the various costs for the manufacturer, we need to analyze the information provided.

For the Anderson table manufacturing company in Jan 2003:

1. Cost of direct material used in production:
Direct material cost = $25,000

2. Cost of direct labor:
Direct labor cost = $50,000

3. Cost of manufacturing overhead:
Manufacturing overhead cost = Sum of the following expenses:
- Cleaning supplies: $300
- Machine lubricants: $100
- Factory rent: $2,000
- Plant security guard: $1,200
- Plant supervision: $2,500
- Depreciation on production equipment: $4,000

Total manufacturing overhead cost = $300 + $100 + $2,000 + $1,200 + $2,500 + $4,000 = $10,100

4. Total cost of tables manufactured:
Total cost of tables manufactured = Cost of direct material + Cost of direct labor + Cost of manufacturing overhead
= $25,000 + $50,000 + $10,100
= $85,100

5. Cost per table manufactured:
Cost per table = Total cost of tables manufactured / Number of tables manufactured
= $85,100 / 1,000
= $85.10

6. Whether the cost per table is valuable information for Carole Anderson, the company's owner, depends on her specific needs and objectives. If she wants to assess the profitability of each table, determine pricing strategies, or evaluate the efficiency of manufacturing processes, the cost per table can provide valuable insights.

Carole Anderson could use this information in several ways:
- Determine the selling price of each table by adding a suitable profit margin to the cost per table.
- Compare the cost per table to competitors' prices to adjust pricing strategies.
- Analyze the cost per table over time to identify trends and take corrective actions if necessary.
- Evaluate the impact of changes in material or labor costs on the cost per table.

For the Elsea MFG company in Dec 2004:

1. Cost of direct material used in production:
Direct material cost = Beginning direct material inventory + Direct materials purchased - Ending direct material inventory
= $42,000 + $850,000 - $48,000
= $844,000

2. Cost of direct labor:
Direct labor cost = Assembly line labor cost
= $820,000

3. Cost of manufacturing overhead:
Manufacturing overhead cost = Sum of the following expenses:
- Indirect materials used in production: $4,000
- Factory supplies used: $6,200
- Depreciation on the factory: $60,000
- Factory security guard cost: $12,000
- Factory supervision: $82,600
- Depreciation on production equipment: $560,000

Total manufacturing overhead cost = $4,000 + $6,200 + $60,000 + $12,000 + $82,600 + $560,000 = $724,800

4. Total manufacturing cost incurred during 2004:
Total manufacturing cost = Cost of direct material + Cost of direct labor + Cost of manufacturing overhead
= $844,000 + $820,000 + $724,800
= $2,388,800

5. Cost of goods manufactured for 2004:
Cost of goods manufactured = Beginning work in process inventory + Total manufacturing cost - Ending work in process inventory
= $84,000 + $2,388,800 - $93,000
= $2,379,800

6. Cost of goods sold for 2004:
Cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory
= $124,000 + $2,379,800 - $133,000
= $2,370,800