is planning to outsource some manufacturing activities and to further automate others. Management estimates that these plans will reduce labor hours by 25 %, increase the factory overhead rate to 3.6 times the direct labor costs, and increase material costs by $ 30 per unit. Management plans to manufacture 10,000 units. What amount should management budget for the cost of goods manufactured?
12. During the month of March 2005, Nale Co. used $ 300,000 of direct materials. On March 31, 2005, Nale ' s direct materials inventory was $ 50,000 more than it was on March 1, 2005. Direct material purchases during the month of March 2005 amounted to
13. Based on the following data, what is the gross profit for the company? Sales $ 1,000,000, Net purchases of raw materials 600,000, Cost of goods manufactured 800,000, Marketing and administrative expenses 250,000, Indirect manufacturing costs 500,000.
14. On January 1 Maples had two jobs in process: # 506 with assigned costs of $ 10,500 and # 507 with assigned costs of $ 14,250. During January three new jobs, # 508 through # 510, were started and three jobs, # 506, # 507, and # 508, were completed. Materials and labor costs added during January were as follows: Manufacturing overhead is assigned at the rate of 200 percent of labor. What is the January cost of goods manufactured and transferred from work-in-process?
15. In June, Delta Co. experienced scrap, normal spoilage, and abnormal spoilage in its manufacturing process. The cost of units produced includes
16. In its April 2005 production, Hern Corp., which does not use a standard cost system, incurred total production costs of $ 900,000, of which Hern attributed $ 60,000 to normal spoilage and $ 30,000 to abnormal spoilage. Hern should account for this spoilage as 17. Mat Co. estimated its material handling costs at two activity levels as follows: What is Mat ' s estimated cost for handling 75,000 kilos?