question archive Manufacturing Cost Concepts 1) Amazing Cupcake Company is in a dilemma, it’s considering adding a new product (cake pops) to its lineup
Manufacturing Cost Concepts 1) Amazing Cupcake Company is in a dilemma, it’s considering adding a new product (cake pops) to its lineup
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Manufacturing Cost Concepts
1) Amazing Cupcake Company is in a dilemma, it’s considering adding a new product (cake pops) to its lineup. It had acquired a new building to sell the cupcakes a year ago and there was some unused portion in the building that it had rented to flower shop. The flower shop’s lease will be up in a few days and it is considering utilizing the space for manufacturing the new product. Under this option (selling cake pops), the unused space will continue to be depreciated on a straight-line basis, as in past year.
Direct materials and direct labor cost for the new product would be $1.50 per unit. ACC estimates that it would be able to sell 3,000 cake pops every month. It would cost the company an additional $2,000 each month to advertise the new product. A new production supervisor would be hired to oversee production of the new product who would be paid $3,000 per month. Still enjoying the Accounting class, you have decided to apply the principles learnt in class to help your friend make the best decision. Assume costs are categorized using absorption costing.
???????2. Presented below are incomplete 2013 manufacturing cost data for Tardy Corporation.
|
Direct Materials Used |
Direct Labor |
Manufacturing Overhead |
Total Manufacturing Costs |
Work in Process (1/1) |
Work in Process (12/31) |
Cost of Goods Manufactured |
|
|
(a) |
$38,000 |
$80,000 |
$48,000 |
? |
$120,000 |
$96,000 |
? |
|
(b) |
$149,000 |
$53,000 |
$90,000 |
$292,000 |
? |
$98,000 |
$311,000 |
|
(c) |
$53,000 |
$116,000 |
$121,000 |
$290,000 |
$403,000 |
? |
$515,000 |
Instructions
Determine the missing amounts.
Option 1
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