170. Rosalba Manufacturing Company had the following account balance for 2012:
a) $33,000 + $625,000 - $27,000 = $631,000
b) $631,000 ´ .68 = $429,080
c) $15,000 + $429,080 - $3,000 = $441,080
d) $441,080 + $48,000 - $70,200 = $418,880 total manufacturing costs
$418,880 - $106,500 = $312,380
$312,380 = factory overhead + direct labor
Let X = direct labor
3X + X = $312,380
4X = $312,380
X = $78,095
e) $22,500 + $90,000 - $6,000 = $106,500
f) $78,095 ´ 3 = $234,285
171. Sineath Industries had a fire and some of its accounting records were destroyed. Available information is presented below for the year ended December 31, 2011.
a) $15,000 + $22,900 - $28,000 = $9,900
b) $135,000 + $12,000 = $147,000 total manufacturing costs
$147,000 - $22,900 = $124,100 direct labor and factory overhead
Let X = direct labor cost
X + 1.5X = $124,100
2.5X = $124,100
X = $49,640
c) $49,640 ´ 1.5 = $74,460
d) $135,000 + $18,000 = $153,000
172. Classify the following costs as either a product cost or a period cost:
a)direct materials used
b) factory utilities
c) salespersons’ commissions
d) salary of plant manager
e) indirect materials used
f) depreciation on store equipment
g)indirect labor incurred
h) advertising expense
i) direct labor incurred
j) factory machinery repairs and maintenance
k)_____________depreciation on factory machinery
l) plant insurance expired