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Serial Problem Business Solutions L.O. C2, C4, P2

Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture.

Required:

1.	Classify the following manufacturing costs of Business Solutions by behavior and traceability.

Product Costs	Cost by Behavior	Cost by Traceability
1. Monthly flat fee to clean workshop
2. Laminate coverings for desktops
3. Taxes on assembly workshop
4. Glue to assemble workstation component parts
5. Wages of desk assembler
6. Electricity for workshop
7. Depreciation on tools

Direct materials: $2,100

Factory overhead: $480

Direct labor: $1,000

Beginning goods in process: none (December 31, 2011)

Ending goods in process: $530 (January 31, 2012)

Beginning finished goods inventory: none (December 31, 2011)

Ending finished goods inventory: $380 (January 31, 2012)

2.	Assume the above manufacturing costs. Prepare a manufacturing statement for Business Solutions for the month ended January 31, 2012. (Input all amounts as positive values. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)

Business Solutions

Manufacturing Statement

For Month Ended January 31, 2012

Problem 18-2A Part 1

Required:
1.	Classify each cost and its amount as (a) either fixed or variable and (b) either product or period. (The first cost is completed as an example.) (Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)

Cost by Behavior

Cost by Function

Costs

Variable

Fixed

Product

Period

Plastic for casing

17,000

Wages of assembly workers

Problem 18-8A Part-1

Required:

1.	Prepare the company’s 2011 manufacturing statement. (Input all amounts as positive values. Omit the “$” sign in your response.)

PLAZA COMPANY

Manufacturing Statement

For Year Ended December 31, 2011

Direct materials

Problem 18-8A Part-2

2.	Prepare the company’s 2011 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses. (Input all amounts as positive values. Omit the “$” sign in your response.)

PLAZA COMPANY

Income Statement

For Year Ended December 31, 2011

$ [removed]

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5 years ago
10.05.2015
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