JK Company, located in Indonesia, specializes in producing sets of wooden patio furniture consisting of a...
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JK Company, located in Indonesia, specializes in producing sets of wooden patio furniture consisting of a table and four chairs. The company is currently operating at 80% of its full capacity of 5,000 sets per quarter. Quarterly cost data at this level of operations follow: Factory labour, direct $372,000 Advertising 96,000 Factory supervision 106,000 Property taxes, factory building 16,100 Sales commissions 192,000 Insurance, factory 7,100 Depreciation, office equipment 27,200 Lease cost, factory equipment 19,200 Indirect materials, factory 29,200 Depreciation, factory building 26,000 General office supplies (billing) 9,600 General office salaries 88,000 Direct materials used (wood, bolts, etc.) Utilities, factory 230,000 58,000 Required: 1. Enter each cost item on your answer sheet, placing the dollar amount of each cost item under the appropriate headings. As examples, this has been done already for the first two items in the preceding list. Note that each cost item is classified in two ways: first, as variable or fixed, with respect to the number of units produced and sold, and, second, as a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as being either direct or indirect as shown.) Product Cost Direct Indirect $ 372,000 96,000 Cost Behaviour Selling and Administrative Cost Item Variable Fixed Cost Factory labour, direct $ 372,000 Advertising 96,000 Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, office equipment < Prev 5 of 5 Next JK Company, located in Indonesia, specializes in producing sets of wooden patio furniture consisting of a table and four chairs. The company is currently operating at 80% of its full capacity of 5,000 sets per quarter. Quarterly cost data at this level of operations follow: Factory labour, direct $372,000 Advertising 96,000 Factory supervision 106,000 Property taxes, factory building 16,100 Sales commissions 192,000 Insurance, factory 7,100 Depreciation, office equipment 27,200 Lease cost, factory equipment 19,200 Indirect materials, factory 29,200 Depreciation, factory building 26,000 General office supplies (billing) 9,600 General office salaries 88,000 Direct materials used (wood, bolts, etc.) Utilities, factory 230,000 58,000 Required: 1. Enter each cost item on your answer sheet, placing the dollar amount of each cost item under the appropriate headings. As examples, this has been done already for the first two items in the preceding list. Note that each cost item is classified in two ways: first, as variable or fixed, with respect to the number of units produced and sold, and, second, as a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as being either direct or indirect as shown.) Product Cost Direct Indirect $ 372,000 96,000 Cost Behaviour Selling and Administrative Cost Item Variable Fixed Cost Factory labour, direct $ 372,000 Advertising 96,000 Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, office equipment < Prev 5 of 5 Next
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Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
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