1. Business
  2. Accounting
  3. exam 1 review inclass exercise cruz co starts its operations...

Question: exam 1 review inclass exercise cruz co starts its operations...

Question details

Exam 1 review in-class exercise Cruz Co, starts its operations in 2017. It produces two products, ABC and XYZ. The folowing information relates to the operations of Cruz during 2017 S 90 Raw materials used- ABC Direct labor wa Raw materials used XYZ ges- ABC 120 175 80 50 30 XYZ Sales salaries and Depreciation on production equipment Administrative s Factory utilities and utlities 20 50 100 of f Cruz allocates manufacturing overhead costs to its products using a single allocation base, direct labor hours. During 2017, direct labor hours for ABC and XYZ are 15,000 hours and 35,000 hours respectively Cruz produced 3,000 units of ABC and 5,000 units of XYZ in 2017. It sold 2,500 units of ABC at the price of $100 per unit and 4,000 units of XYZ at the price of $120 per unit. Based on the above information, answer the following questions 1. Classify each of the cost in the above table as D/DLMOH/SG&A and product/period cost 2. How much is Cruzs total period costs in 2017? 3. How much is Cruzs total manufacturing overhead in 2017? 4. Using director labor hours as the allocation base, calculate allocated manufacturing overhead for ABC and XYZ. 5. Calculate total product costs for the 3,000 units of ABC produced in 2017 6. Calculate total product costs for the 5,000 units of XYZ produced in 2017, 7. How much is Cruzs total cost of goods sold (COGS) in 2017? 8. Prepare an income statement for Cruzs operations in 2017. How much is Cruzs net income?
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution