1. Cost of goods manufactured equals $65,000 for 2013. Finished goods inventory is $2,000 at the beginning...
Question:
1. Cost of goods manufactured equals $65,000 for 2013. Finished goods inventory is $2,000 at the beginning of the year and $5,500 at the end of the year. Beginning and ending work in process for 2013 are $4,000 and $5,000, respectively. How much is cost of goods sold for the year?
2. Kevin's Corporation manufactures titanium and aluminum tennis racquets. Kevin's total overhead costs consist of assembly costs and inspection costs. The following information is available:
Cost | Titanium | Aluminum | Total Cost |
Assembly | 500 mach. hours | 500 mach. hours | $45,000 |
Inspections | 350 | 150 | $75,000 |
2,100 labor hours | 1,900 labor hours |
Kevin is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much assembly cost is assigned to titanium racquets?
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton