Question

Into which one of the following accounts would the work of factory employees, that can be physically and directly associated with converting raw materials into finished goods, be categorized? direct labour indirect labour manufacturing overhead C indirect materials C Hardigan Manufacturing Company reported the following year-end information: beginning work in process inventory, $80,000; cost of goods manufactured, $980,000; beginning finished goods inventory, $50,000; ending work in process inventory, $70,000; and ending finished goods inventory, $40,000. How much is Haridgan's.cost of goods sold for the year? $980,000 $990,000 C $970,000 c $1,000,00o In which classification would the wages of a factory payroll clerk be classified? raw materials C. indirect labour period cost C direct labour A firm has the capacity to produce 3,100 units per week. At 80 % capacity, the average total cost per unit is $12.50 and the average variable cost per unit is $7.50. What is the total fixed cost per week, assuming the firm is still operating within its relevant range? $10,400 $14,400 $8,400 $12,400 C During May, Mayer Company's total fixed costs were $5,000 and variable costs were $7,000 when 500 units were produced. How much is the total cost for June if 600 units are produced? $13,400 $12,000 C $7,000 $14,400

For these five I may have the answer but not sure. If anyone can clarify! thanks. I have an exam soon so the sooner the better!

Answer 1

Ans. 1	Option 1st
	Explanations: Salary to factory employees is a direct wages so this expense
	would be categorized in direct labor cost.
Ans. 2	Option 2nd
	Particulars	Amount
	Cost of Goods Manufactured	$980,000
	Add: Beginning finished goods inventory	$50,000
	Cost of goods available for sale	$1,030,000
	Less: Ending finished goods inventory	-$40,000
	Cost of goods sold	$990,000
Ans. 3	Option 2nd
	Wages of a factory payroll clerk is not a direct wages
	so it would be classified under indirect factory labor cost.
Ans. 4	Option 4th
	Production at 80% capacity = Total units produced * 80%
	3,100 * 80%
	2,480 units
	Fixed cost per unit =   Total cost per unit - Variable cost per unit
	$12.50 -$7.50    =    $5.00   per unit
	Fixed cost per week   =   Fixed cost per unit * Production at 80% capacity
	$5.00 * 2,480
	$12,400
Ans. 5	Option 1st
	Fixed cost always remain same on each level of activity.
	Variable cost in June   =   Variable cost of May / Units produced in May * Units produced in June
	$7,000 / 500 * 600
	$8,400
	Total cost = Fixed cost + Variable cost
	$5,000 + $8,400
	$13,400