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ACCT. 525_TERM PAPER_SPRING 2014_Management Accounting




Question;Texas A&M University-Commerce;ACCT. 525 ? Advanced Managerial Accounting;Project;General information;This individual project is designed for you;to explore the implications of managerial accounting. The project will require;organization, critical thinking, good written communication skills, and an;understanding of advanced managerial accounting concepts.;The project is graded for completeness;professionalism, and accuracy (as well as the usual elements of grammar and;style). Be sure to thoroughly address all of the requirements outlined and;offer complete support for your discussions and responses. Total points for;this project are 100.;This is an individual projectand the;final product is your individual responsibility.;To avoid plagiarism;? Always make;note of the source(s) used.;? Use quotations;when text is directly excerpted from a source.;? When;paraphrasing read the original passage several times. Get a complete;understanding of the content and the context of the passage. Use your own words;to reflect the idea of the passage (still cite the source).;? Ask a friend or family member to proofread;your work and the sources used.;DUE DATE;You have four weeks to complete this;assignment. Plan your time accordingly. Having a plan will help to ensure that;the assignment is completed on time with thoughtful professional quality. Your;completed paper must be submitted on or before April 25 at 11:59 p.m.;REQUIREMENTS;Read all of the following carefully.;This assignment consists of five (5);independent questions. The questions presented address the various topics;covered throughout this course. You are required to provide complete and;thorough responses to these questions and demonstrate your comprehension of the;course material and its applicability to business.;Some questions contain multiple parts. Clearly;labelALL of your responses to correspond with the questions and each part.;I will NOT try to match responses with questions if they are not appropriately;labeled.;Turn It In;software used to assess plagiarism, will be used. Please make sure that your;work is your own. Work that is deemed plagiarized, copied, not original, or not;authentic will NOT be graded.;A title page is required.;Late;assignments will not be accepted.;Note that this assignment cannot be;successfully completed the night before it is due!;FORMATTING;INSTRUCTIONS FOR ACCT. 525 PAPER;In addition to the general guidelines provided for;submitting your responses to the assigned questions, please use the following;when formatting your document.;-;Start with a title page which will show;your name and student ID number.;-;Include a header on every other page;which ONLY has your student ID number. Your name must not be shown on any page;other than the title page.;-;The response to each question must begin;on a new page. You can use the page break function to separate your pages. Citations;should appear below your response to each question.;-;Submit ONLY ONE WORD DOCUMENT. Your entire response must be;contained in this one word document.;-;Use a standard size font, 12 point.;-;Where a written response is required, it;should not exceed the requested length of the response. For example, a;paragraph should not exceed half a page.;-;Always show your calculations in your;response, not just the final answer.;-;Do NOT include the wording of the;question in your response. You should respond as illustrated below, using;question 1 (a) as an example;1 (a) Your response will start here.;The;paper starts on the next page below;ACCT.;525 TERM PAPER;SPRING 2014;1.Stewart Inc. uses a process cost system and the weighted-average cost;flow assumption. Production begins in the Fabricating Department where;materials are added at the beginning of the process and conversion costs are;incurred uniformly throughout the process. On March 1, the beginning work in;process inventory consisted of 20,000 units which were 60% complete and had a;cost of $175,000, $145,000 of which were material costs. During March, the;following occurred;Materials;added $305,000;Conversion;costs incurred $120,000;Completed;units transferred out in March 65,000;Units in;ending work in process March 31 (40% complete) 25,000;Instructions: (15 points);Answer the;following questions and show the computations that support your answers.;(a) What are the;equivalent units of production for materials and conversion costs in the;Fabricating Department for the month of March?;(b) What are the;costs assigned to the ending work in process inventory on March 31?;(c) What are the;costs assigned to units completed and transferred out during March?;2.Davis Inc. uses a job order cost accounting system and;keeps perpetual inventory records. The following transactions occurred in the;first month of operations;1. Direct;materials requisitioned during the month;Job;101 $20,000;Job;102 16,000;Job;103 24,000;$60,000;2. Direct labor;incurred and charged to jobs during the month was;Job;101 $30,000;Job;102 28,000;Job;103 20,000;$78,000;3. Manufacturing;overhead was applied to jobs worked on using a predetermined overhead rate;based on 75% of direct labor costs.;4. Actual;manufacturing overhead costs incurred during the month amounted to $66,000.;5. Job 101;consisting of 1,000 units and Job 103 consisting of 200 units were completed during;the month.;Instructions: (28 points);(a) Prepare journal entries to;record the above transactions.;(b) How much manufacturing;overhead was applied to Job 103 during the month?;(c) Compute the;unit cost of Jobs 101 and 103.;(d) What is the;balance in Work In Process Inventory at the end of the month?;(e) Determine if;manufacturing overhead was under- or over-applied during the month. How much?;3.Campbell Inc. is a;small manufacturer that uses machine-hours as its activity base for assigning;overhead costs to jobs. The company estimated the following amounts for 2013;for the company and for Job 62;Company Job 62;Direct;materials $60,000 $4,500;Direct;labor $25,000 $2,500;Manufacturing;overhead costs $72,000;Machine;hours 80,000 1,350;During 2013, the actual machine-hours;totaled 84,000, and actual overhead costs were $71,000.;Instructions;(18 points);(a) Compute the predetermined overhead rate.;(b) Compute the total manufacturing costs for Job;62.;(c) How much overhead is over or under applied;for the year for the company? State the dollar amount and whether it is over-;or under applied.;(d) If Campbell Inc. sells Job 62 for $14,000;compute the gross profit.;4.Write;a paragraph explaining the difference between absorption and variable costing. (15 points);5.The;comparative balance sheets for Ashley Company as of December 31 are presented;below.;ASHLEY;COMPANY;Comparative;Balance Sheets;December 31;Assets;2013;2012;Cash;$70,600;$45,220;Accounts receivable;43,599;61,607;Inventory;151,897;141,806;Prepaid expenses;15,290;21,335;Land;105,700;130,600;Equipment;228,359;155,043;Acc. depr. - equipment;(45,192);(35,358);Building;199,500;199,500;Acc. depr. - building;(59,850);(39,900);Total;$709,903;$679,853;Liabilities and Stockholders;Equity;Accounts payable;$47,460;$39,754;Bonds payable;261,050;300,300;Common stock, $1 par;197,650;158,400;Retained earnings;203,743;181,399;Total;$709,903;$679,853;Additional information;Operating expenses include;depreciation expense of $41,747 and charges from prepaid expenses of;$6,045.;Land was sold for cash at book;value.;Cash dividends of $14,684 were;paid.;Net income for 2011 was;$37,028.;Equipment was purchased for;cash. In addition, equipment costing $22,162 with a book value of $10,199;was sold for $6,272 cash.;Bonds were converted at face;value by issuing 39,250 shares of $1 par value common stock.;Instructions: (24 points)Prepare a statement of cash flows for the year ended;December 31, 2013, using the indirect method.


Paper#37414 | Written in 18-Jul-2015

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