Exercise 2-37 Assigning Costs to a Cost Object, Direct and Indirect Costs Hummer Company uses manufacturing cells to produce its products (a cell is a manufacturing unit dedicated to the production of subassemblies or products). One manufacturing cell pro- duces small motors for lawn mowers. Suppose that the motor manufacturing cell is the cost object. Assume that all or a portion of the following costs must be assigned to the cell. a. Salary of cell supervisor b. Power to heat and cool the plant in which the cell is located c. Materials used to produce the motors d. Maintenance for the cell's equipment (provided by the maintenance department) e. Labor used to produce motors f. Cafeteria that services the plant's employees g. Depreciation on the plant h. Depreciation on equipment used to produce the motors i. Ordering costs for materials used in production j. Engineering support (provided by the engineering department) k. Cost of maintaining the plant and grounds 1. Cost of the plant's personnel office m. Property tax on the plant and land Exercise 2-38 Total and Unit Product Cost Martinez Manufacturing Inc. showed the following costs for last month: Direct materials $7,000 Direct labor 3,000 Manufacturing overhead 2,000 Selling expense 8,000 Last month, 4,000 units were produced and sold. Required: 1. Classify each of the costs as product cost or period cost. 2. What is the total product cost for last month? 3. What is the unit product cost for last month? Use the following information for Exercises 2-45 and 2-46: In September, Lauren Ashley Company purchased materials costing $200,000 and incurred direct labor cost of $120,000. Overhead totaled $325,000 for the month. Information on inventories was as follows: Materials Work in process Finished goods September 1 $120,000 80,000 70,000 September 30 $130,000 90,000 65,000 Exercise 2-45 Direct Materials Used, Cost of Goods Manufactured Refer to the information for Lauren Ashley above. Required: 1. What was the cost of direct materials used in September? 2. What was the total manufacturing cost in September? 3. What was the cost of goods manufactured for September? Exercise 2-50 Understanding the Relationship between Cost Flows, Inventories, and Cost of Goods Sold Ivano Company has collected cost accounting information for the following subset of items for Years 1 and 2. Year 1 Year 2 a $50,000 d Item: Direct materials used in production Direct materials: Beginning inventory Direct materials purchases Direct materials: Ending inventory Direct labor used in production Manufacturing overhead costs used in production Work in process: Beginning inventory Work in process: Ending inventory Finished goods: Beginning inventory Finished goods: Ending inventory Cost of goods sold Required: Calculate the values of the missing Items a through e. $ 10,000 45,000 15,000 b 80,000 17,000 14,000 8,000 7,000 169,000 17,000 53,000 76,000 14,000 19.000 7,000 11,000