Chapters 1 and 2
10 Points
1 . Complete the answer sheet below by putting an “X” under each heading that identifies the cost involved. The “Xs” can be placed under more than one heading for an individual cost. (5 Points)
Changing Cost
Fixed Expense
Immediate Materials
Direct Labor
Manufactu
diamond ring Overhead
Period Expense
Elements costs
X
By
Production series workers income
Back button
X
Production Equipment leasing
Back button
X
Factory Building depreciation
Times
X
Promoting costs
Times
X
installment payments on your A partial set of costs sustained at Rust Corporation during August looks below:
Buys of organic materials……… bucks 135, 500
Direct labor……… 73, 500
Factory Utilities………………………………………………. 11, 000 Sales Commissions…………………………………………… 69, 000 Administrative Salaries……………………………………….. 101, 500 Indirect Labor………………………………………………… 89, 000 Depreciation of Production Equipment………………………. 18, 000 Indirect Materials……………………………………………… 10, 000 Depreciation of Office Backup Machine……………………….. 5, 000
Recycleables inventory, beginning……… 97, 000
Raw materials products on hand, ending……… 84, 000
Operate process products on hand, beginning……… 39, 000
Work in process inventory, ending……… 52, 000
Completed goods inventory, beginning……… 106, 000
Completed goods inventory, ending……… 71, 000
a. Prepare a Schedule of Expense of Goods Manufactured in good form. (3 Points)
Direct Elements:
Beginning raw materials inventory: $97, 500
Put: Purchase of recycleables 135, 1000 Raw materials readily available for use 232, 000
Deduct: Closing raw materials products on hand 84, 1000
Unprocessed trash used in production $148, 000
Direct Labor: 73, 000
Manufacturing Over head: 118, 500
Total making cost: 339, 000
Add: Commencing work in method inventory 39, 000
378, 500
Deduct: Ending work in method inventory 52, 000
Cost of merchandise manufactured $326, 000
w. Compute the Cost of Goods Sold. (2 Points)
Finished items inventory, beginning$106, 000
Add: Expense of goods made 326, 000
Goods available 432, 000
Take: Finished merchandise inventory, finishing 71, 1000
Cost of products sold $361, 000
Managerial Acctg Quiz 2 – Fall 2012 NAME__ _______________________
Chapters a few and 5
ten features
1 . Pence Company can be described as manufacturing organization that uses job-order costing. The
company is applicable overhead to jobs using a predetermined cost to do business rate based upon machine-hours. At the beginning of the year, the company estimated which it would work 44, 000 equipment hours and would fees $176, 1000 in manufacturing overhead cost. In the past year the following actual costs and hours had been incurred:
Job A Job M Job C Job Deb Direct Materials$ 135, 1000 $ 129, 000 $ 98, 000 $ 103, 000 Immediate Labor $ 80, 500 $ 85, 000 $ 63, 000 $ 68, 000 Machine Hours 12, 000 13, 000 almost eight, 000 14, 000 Quantity of Units 55 35 62
Indirect Materials used: money 34, 500
Indirect Labor: money 63, 000
Advertising Costs: $134, 000
Factory Power Costs: money 14, 1000
Stock Depreciation: $114, 000
Administrative Salaries $157, 000
Required: (5 points)
a. Compute the predetermined overhead rate
176000/44000= some. 00
m. Compute the amount of overhead used on each task.
A. 12000*4= 48000 B. 13000*4= 52000 C. 8000*4= 32000 D. 14000*4= 56000
c. Assuming that Careers A, W, and D were finished during the year, figure out the total cost charged to each job plus the unit cost of the product made.
A. 5660
M. 8543
D. 3983
d. Calculate the balance during working hours In Process at the end from the year. 161, 000
elizabeth. Compute the quantity of overhead underneath or overapplied.
176000-161000= 15000
n. Assuming the amount is not material, write the journal admittance required to close the manufacturing overhead account at the end from the year. Work in Process 161, 000
Manufacturing Overhead161, 000
2 . Elton Organization uses the weighted-average method in its process costing program. The company brings materials at the start of the process in Department Meters. Conversion costs were 73% complete with value to the four, 000 units in work in process by May one particular and fifty percent complete with esteem to the 6, 000 models in work in process in May 23. During May, 12, 000 units had been completed and transferred to another department. An analysis of the costs relating to work in procedure at May 1 and also to production activity for May well follows:
Supplies
Alteration
Work in procedure 5/1
$26, two hundred
$19, 370
Costs added during May
$26, nine hundred
$29, 380
Needed:
Using the weighted-average method, determine the Equivalent Models of Creation for Supplies and Change Costs, the fee per Equivalent Unit
for Materials and Transformation Cost, plus the total product cost every Equivalent Product. (5 Points)
Equivalent models of production
Supplies Conversion Transferred to next department…………………….. 12, 500 12, 000 Ending operate process (materials: 6, 500 units
× 100% total; conversion: 6th, 000 devices ×
50% complete)……………………………………….. 6, 500 3, 000 Equivalent units of production……………………… 18, 500 15, 000 Cost per Equivalent Unit
Materials Alteration Total
Cost of beginning work in process……………….. 26, 200 19, 370 Cost added during the period……………………….. 26, nine hundred 29, 380 Total expense (a)……………………………………………… 53, 100 forty eight, 750 Equivalent units of production (b)………………… 18, 500 15, 000 Cost per equivalent device, (a) ÷ (b)…………………. 2 . 95 several. 25 Total: $6. twenty
one particular
