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    Task 1: Cost Classfication Task 1 Has 3 Questions in Total

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    Ngọc Trâm Trần
    This document contains information for three questions regarding cost classification for Leone Company. For question 1, the assistant is asked to identify various costs from Leone Company's trial balance as either product costs (direct materials, direct labor, factory overhead) or period costs (selling expenses, general and administrative expenses). Additional information is provided about Leone Company's inventory accounts and sales for the current year. The assistant is asked to prepare a schedule of cost of goods manufactured and an income statement for the current year. Question 2 provides data for Garcon Company and Pepper Company and asks the assistant to compute their cost of goods manufactured, cost of goods sold, prime costs, and conversion costs. Question 3 does not provide

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    Task 1: Cost Classfication Task 1 Has 3 Questions in Total

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    Ngọc Trâm Trần
    58 views3 pages
    This document contains information for three questions regarding cost classification for Leone Company. For question 1, the assistant is asked to identify various costs from Leone Company's trial balance as either product costs (direct materials, direct labor, factory overhead) or period costs (selling expenses, general and administrative expenses). Additional information is provided about Leone Company's inventory accounts and sales for the current year. The assistant is asked to prepare a schedule of cost of goods manufactured and an income statement for the current year. Question 2 provides data for Garcon Company and Pepper Company and asks the assistant to compute their cost of goods manufactured, cost of goods sold, prime costs, and conversion costs. Question 3 does not provide

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    Task 1_Cost classification_Ques

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    This document contains information for three questions regarding cost classification for Leone Company. For question 1, the assistant is asked to identify various costs from Leone Company's trial balance as either product costs (direct materials, direct labor, factory overhead) or period costs (selling expenses, general and administrative expenses). Additional information is provided about Leone Company's inventory accounts and sales for the current year. The assistant is asked to prepare a schedule of cost of goods manufactured and an income statement for the current year. Question 2 provides data for Garcon Company and Pepper Company and asks the assistant to compute their cost of goods manufactured, cost of goods sold, prime costs, and conversion costs. Question 3 does not provide

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    58 views3 pages

    Task 1: Cost Classfication Task 1 Has 3 Questions in Total

    Uploaded by

    Ngọc Trâm Trần
    This document contains information for three questions regarding cost classification for Leone Company. For question 1, the assistant is asked to identify various costs from Leone Company's trial balance as either product costs (direct materials, direct labor, factory overhead) or period costs (selling expenses, general and administrative expenses). Additional information is provided about Leone Company's inventory accounts and sales for the current year. The assistant is asked to prepare a schedule of cost of goods manufactured and an income statement for the current year. Question 2 provides data for Garcon Company and Pepper Company and asks the assistant to compute their cost of goods manufactured, cost of goods sold, prime costs, and conversion costs. Question 3 does not provide

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3
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    The document provides information about cost classification and inventory valuation for two different companies.

    Classify each cost item as either a product cost (direct material, direct labor, or factory overhead) or a period cost (selling expense or general and administrative expense).

    Compute the cost of goods manufactured and cost of goods sold for each company. Also compute the total prime costs and conversion costs for each company.

    TASK 1: COST CLASSFICATION

    Task 1 has 3 questions in total.


    Question 1: The following year-end information is taken from the December 31 adjusted trial
    balance and other records of Leone Company.
    Advertising expense $28,750 Direct labor $675,480
    Depreciation expense—Office
    7,250 Indirect labor 159,475
    equipment
    Depreciation expense—Selling
    8,600 Office salaries expense 63,000
    equipment
    Depreciation expense—Factory
    49,325 Rent expense—Office space 22,000
    equipment
    Raw materials purchases (all direct
    925,000 Rent expense—Selling space 26,100
    materials)
    Maintenance expense—Factory Rent expense—Factory
    35,400 76,800
    equipment building
    Factory utilities 33,000 Sales salaries expense 392,560

    Requirements:
    1. Identify each cost as either a product cost or a period cost. If a product cost, classify it as
    direct materials, direct labor, or factory overhead. If a period cost, classify it as a selling expense
    or a general and administrative expense.
    2. The following additional information for Leone Company, complete the requirements below.
    Raw materials inventory, beginning $166,850 Work in process inventory, ending $19,380
    Raw materials inventory, ending 182,000 Finished goods inventory, beginning 167,350
    Work in process inventory, beginning 15,700 Finished goods inventory, ending 136,490
    Sales 4,462,500

    a) Prepare the schedule of cost of goods manufactured for the current year.
    b) Prepare the current year income statement
    Question 2: The following data from both Garcon Company and Pepper Company for the year
    ended December 31:

    Garcon Co. Pepper Co.


    Finished goods inventory, beginning $ 12,000 $ 16,450
    Work in process inventory, beginning 14,500 19,950
    Raw materials inventory, beginning 7,250 9,000
    Rental cost on factory equipment 27,000 22,750
    Direct labor 19,000 35,000
    Finished goods inventory, ending 17,650 13,300
    Work in process inventory, ending 22,000 16,000
    Raw materials inventory, ending 5,300 7,200
    Factory utilities 9,000 12,000
    General and administrative expenses 21,000 43,000
    Indirect labor 9,450 10,860
    Repairs—Factory equipment 4,780 1,500
    Raw materials purchases 33,000 52,000
    Selling expenses 50,000 46,000
    Sales 195,030 290,010
    Cash 20,000 15,700
    Accounts receivable, net 13,200 19,450
    Requirements:
    a) Compute (1) the cost of goods manufactured and (2) the cost of goods sold for each
    company. Hint: Not all information is needed for the solution.
    b) Compute the total (1) prime costs and (2) conversion costs.
    Question 3

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