Prepare an income statement for jasper for last year
Cost Accounting
Total and Unit Product Cost Martinez Manufacturing Inc. showed the following costs for last month: Direct materials $7,000 Direct labor 3,000 Manufacturing overhead 2,000 Selling expense 8,000 Last month, 4,000 units were produced and sold.
Required:
1. Classify each of the costs as product cost or period cost.
2. What is total product cost for last month?
3. What is the unit product cost for last month?
Income Statement
Refer to the information for Jasper Company above.
Required:
1. Prepare an income statement for Jasper for last year. Calculate the percentage of sales for each line item on the income statement. (Note: Round percentages to the nearest tenth of a percent.)
2.CONCEPTUAL CONNECTION Briefly explain how a manager could use the income statement created for Requirement 1 to better control costs.
Exercise 3-20 Variable and Fixed Costs
OBJECTIVE 1
What follows are a number of resources that are used by a manufacturer of futons. Assume that the output measure or cost driver is the number of futons produced. All direct labor is paid on an hourly basis, and hours worked can be easily changed by management. All other factory workers are salaried.
a. Power to operate a drill (to drill holes in the wooden frames of the futons)
b. Cloth to cover the futon mattress
c. Salary of the factory receptionist
d. Cost of food and decorations for the annual Fourth of July party for all factory employees
e. Fuel for a forklift used to move materials in a factory
f. Depreciation on the factory
g. Depreciation on a forklift used to move partially completed goods
h. Wages paid to workers who assemble the futon frame
i. Wages paid to workers who maintain the factory equipment
j. Cloth rags used to wipe the excess stain off the wooden frames
Use the following information for Exercises 3-23 and 3-24:
Alisha Incorporated manufactures medical stents for use in heart bypass surgery. Based on past experience, Alisha has found that its total maintenance costs can be represented by the following formula: Maintenance Cost = $1,750,000 + $125X, where X = Number of Heart Stents. Last year, Alisha produced 50,000 stents. Actual maintenance costs for the year were as expected. (Note: Round all answers to two decimal places.)
Exercise 3-23 Cost Behavior
OBJECTIVE 1
Refer to the information for Alisha Incorporated above.
Required:
1.What is the total maintenance cost incurred by Alisha last year?
2.What is the total fixed maintenance cost incurred by Alisha last year?
3.What is the total variable maintenance cost incurred by Alisha last year?
4.What is the maintenance cost per unit produced?
5.What is the fixed maintenance cost per unit?
6.What is the variable maintenance cost per unit?
7.CONCEPTUAL CONNECTION Briefly explain how Alisha management could improve its cost function to better understand past maintenance costs and predict future maintenance costs.
