Yoder Furniture Works Yoder Furniture Works manufactures a high-quality, wooden
ID: 2422395 • Letter: Y
Question
Yoder Furniture Works
Yoder Furniture Works manufactures a high-quality, wooden rocker-recliner. A key differentiating feature of this rocker-recliner is the ease with which a hand-operated lever raises and lowers the footrest. Yoder left the prototype phase and began commercial production on January 1, 2015. A retired accountant of the founder, Steve Yoder, maintained the accounting records on a temporary basis through January 31, 2015. Now, Yoder is searching for a replacement. Potential candidates are being asked to evaluate the information from the first month of commercial operation as follows:
Cost information
Administrative expenses
$22,000
Advertising expenses
11,700
Cash account balance, January 1, 2015
0
Depreciation on production equipment and factory building
2,000
Depreciation on administrative offices
750
Insurance on production equipment and factory building
1,700
Administrative supplies expense
550
Property taxes on production equipment and factory building
425
Sales commissions
18,700
Utilities for production equipment and factory building
1,650
Wages paid to production workers
67,800
Direct materials inventory, January 1, 2015
0
Direct materials inventory, January 31, 2015
0
Direct materials purchases during January 2015
83,400
Work in process inventory, January 1, 2015
0
Work in process inventory, January 31, 2015
0
Finished goods inventory, January 1, 2015
0
Production and sales information
Units produced during January 2015
600
Units sold during January 2015
490
Sales price per unit
$500
Based on the above information, answer the following questions:
Classify costs as either product costs or period costs using the format shown below. Enter the dollar amount for each cost in the appropriate column and total each classification.
Item
Product Costs
Period Costs
Direct Materials
Direct Labor
Manufacturing Overhead
Classify costs as either variable costs or fixed costs. Assume there are no mixed costs. Enter the dollar amount for each cost in the appropriate column and total each classification. Use the format shown below. Assume that Utilities for production equipment and factory building are a fixed cost
Item
Variable Costs
Fixed Costs
Total Costs
Prepare a schedule of cost of goods manufactured for the month of January 2015.
Cost information
Administrative expenses
$22,000
Advertising expenses
11,700
Cash account balance, January 1, 2015
0
Depreciation on production equipment and factory building
2,000
Depreciation on administrative offices
750
Insurance on production equipment and factory building
1,700
Administrative supplies expense
550
Property taxes on production equipment and factory building
425
Sales commissions
18,700
Utilities for production equipment and factory building
1,650
Wages paid to production workers
67,800
Direct materials inventory, January 1, 2015
0
Direct materials inventory, January 31, 2015
0
Direct materials purchases during January 2015
83,400
Work in process inventory, January 1, 2015
0
Work in process inventory, January 31, 2015
0
Finished goods inventory, January 1, 2015
0
Production and sales information
Units produced during January 2015
600
Units sold during January 2015
490
Sales price per unit
$500
Explanation / Answer
Cost price per unit of a chair Amount in $ Direct materials purchases during January 2015 83,400 Wages paid to production workers 67,800 Depreciation on production equipment and factory building 2,000 Total Production Costs 153,200 Total units produced during January 2015 600 Cost price per unit for production of chair 255.33
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