Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 1Materials
ID: 2609374 • Letter: M
Question
Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 1Materials used in production (including $56,200 of indirect materials) 2Direct labor (including $84,400 maintenance salaries) 3Factory overhead 4 Supervisor salaries-plant 5 Heat, light, and power-plant 6Sales salaries 7 Promotional expenses 8 Insurance and property taxes-plant 9 Insurance and property taxes-corporate offices 10 Depreciation-plant and equipment 11 Depreciation-corporate offices 12 Total $607,500.00 562,500.00 517,500.00 140,650.00 48,750.00 15,000.00 151,900.00 219,400.00 123,750.00 90,000.00 $3,076,950.00Explanation / Answer
1. The maintenance salaries and indirect material need to be included in factory overhead.
2. The following items are been incorrectly included in the factory overhead :
--- sales salaries , promotional expenses , corporate office insurance , property taxes and corporate office depreciation.
Therefore the corrected report :
MARCHING ANTS INC. Manufacturing costs for thr quarter ended June 30,20XX Cost of direct material used in production * $551300 Direct labour * $478100 Factory overhead : Maintenance salaries $84400 Indirect material $56200 Supervisor salaries-plant $517500 Heat,light,and power-plant $140650 Insurance and property taxes-plant $151900 Depreciation-plant and equipment $123750 $1074400 Total $2103800 * $607500 - $56200 = $551300 $562500 - $84400 = $478100