Following information obtained from the cost accounting records of XYZ Corporati
ID: 2376100 • Letter: F
Question
Following information obtained from the cost accounting records of XYZ Corporation for the year ended Dec 31, 2012:
ITEMS
$
General Overhead Expenses
5,700,000
Factory Overhead Expenses
3,200,000
Materials used for Production Purposed
6,800,000
Materials used for Maintenance Purposes
450,000
Depreciation using the Production-Output Method
1,120,000
Wages of Production Workers
12,080,000
Wages of Maintenance Workers
1,150,000
Wages of Head Quarters Security Guards
570,000
Foremen & Supervisors Salaries
1,110,000
Materials used for Safety Purposes
830,000
Advertising Expenses
1,560,000
Accounting & Legal Fees
1,030,000
Compute the following items and Show the DETAILED Cost elements of each Calculation:
1, Total Fixed Cost Elements
2, Variable Cost Elements
3, Conversion Cost Elements
Textbook: Cost Accounting (14th Edition, ISBN:0132109174)
ITEMS
$
General Overhead Expenses
5,700,000
Factory Overhead Expenses
3,200,000
Materials used for Production Purposed
6,800,000
Materials used for Maintenance Purposes
450,000
Depreciation using the Production-Output Method
1,120,000
Wages of Production Workers
12,080,000
Wages of Maintenance Workers
1,150,000
Wages of Head Quarters Security Guards
570,000
Foremen & Supervisors Salaries
1,110,000
Materials used for Safety Purposes
830,000
Advertising Expenses
1,560,000
Accounting & Legal Fees
1,030,000
Explanation / Answer
1, Total Fixed Cost Elements=12,080,000 +1,150,000+ 570,000+1,110,000=14,910,000
2, Variable Cost Elements=6,800,000+450,000+1,120,000+830,000=9,200,000
3, Conversion Cost Elements=5,700,000+3,200,000=8,900,000
Advertising Expenses and Accounting & Legal Fees dont fall into any such head as these are indirect expenses(not related with production )