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Accounting Assignment




Question;1. (15 pts.)Barker Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.Required:Using the weighted-average method:a. Determine the equivalent units of production for materials and conversion costs.b. Determine the cost per equivalent unit for materials and conversion costs.c. Determine the cost of units transferred out of the department during the month.d. Determine the cost of ending work in process inventory in the department.2. (10 pts.)Acme Enterprises has identified the following overhead costs and cost drivers for the coming year:Budgeted direct labor cost was $200,000 and budgeted direct material cost was $300,000. The following information was collected on three jobs that were completed during the month:Required:a. If the company uses traditional costing and allocates overhead using direct labor cost, how much overhead cost should be assigned to Job A, B, and C?b. If the company uses activity-based costing (ABC), how much overhead cost should be assigned to Job A, B, and C?3. (10 pts.)Wayne Shen established Windy City Placement Service (WCPS) to provide executive counseling and job placement services to its clients. Wayne charges a fee of $450.00 per hour for each service. The revenues and costs for the year are shown in the following income statement:Wayne has kept good records of the following data for cost allocation purposes:Required:a. Complete the income statement using activity-based costing and WCPSs three cost drivers.b. Recompute the income statement using direct labor-hours as the only allocation base (150 hours for executive counseling, 450 hours for placement services).4. (10 pts.)The following selected data were taken from the records of the Bixby Box Company. The company uses a job costing system to account for its manufacturing costs. Bixby's fiscal year runs from January 1 to December 31, manufacturing overhead is closed out only at the end of the fiscal year. The following information relates to August operations.(1.) Jobs in process on August 1.(2.) Jobs completed during August: W12, X13, Y14.(3.) Material requisitions and labor time tickets indicated the following:(4.) Jobs sold during August: W12, X13.(5.) Bixby applies overhead to production based upon labor costs.(6.) Selected account balances on August 1 were:(7.) Various overhead incurred (excluding indirect materials and indirect labor) during August, $13,500.(8.) Materials (direct and indirect) purchased during August, $10,905.Required:(a) What is the balance in the Material Inventory account on August 31?(b) Is the manufacturing overhead account Over- or underapplied on August 31? By how much?(c) Compute the cost of goods manufactured for August.(d) Compute the cost of goods sold for August.(e) What is the balance of the Work-in-Process Inventory account on August 31?5. (15 pts.)Prepare the necessary journal entries from the following information for Beaulieu Company.a. Purchased materials on account, $56,700.b. Requisitioned materials for production as follows: direct materials - 80 percent of purchases, indirectmaterials - 15 percent of purchasesc. Direct labor for production is $33,100, indirect labor is $12,500.d. Overhead incurred (not including materials or overhead): $52,900.e. Overhead is applied to production based on direct labor cost at the rate of 220 percent.f. Goods costing $97,600 were completed during the period.g. Goods costing $51,320 were sold on account for $77,600.h. Close the overhead control account to Cost of Goods Sold.6. (10 pts.)Lisa Company applies overhead based upon labor-hours. Budgeted factory overhead was $910,000 andbudgeted labor-hours were 32,500. Actual factory overhead was $893,675 and actual labor-hours were 31,560.Required:a. Compute the overhead application rate.b. Compute the amount of overhead applied to production.c. Determine the amount of Over- or underapplied overhead.7. (15 pts.)Bisson Furniture uses a process cost system to account for its chair factory. Beginning inventory consisted of 5,000 units (100% complete as to material, 55% complete as to labor) with a cost of $124,800 materials and $104,500 conversion. 58,000 units were started into production during the month with material costs of $1,537,000 and $2,124,375 of conversion costs. The ending inventory of 6,000 chairs was 100% complete as to materials and 40% complete as to labor. Bisson uses first-in, first-out (FIFO) costing. Required: (HINT: use 4 decimal places in your calculations)a. Compute the equivalent units of production for each input.b. Compute the cost per unit.c. Compute the cost transferred out to finished goods.d. Compute the ending work-in-process inventory balance.8. (10 pts.)Mike Processing uses a process costing system to account for its solvent plant. Beginning inventory consisted of 14,000 gallons (80% complete as to material, 55% complete as to labor). Mike added 213,000 gallons into the process during April. On April 30th there were 18,000 gallons still in process (60% complete as to material, 45% complete as to labor).Required:(a) Calculate the equivalent units of production for each input, assuming Mike uses weighted-average.(b) Calculate the equivalent units of production for each input, assuming Mike uses FIFO.9. (10 pts.)Betty Inc. provides the following information about resources:In addition, sales for the period totaled $600,000.Required:Compute the unused resource capacity for each preceding item.10. (10 pts.)Jen Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $125,000 for purchasing support should be assigned to the individual vendors from the information given as follows:Required:a. Prepare a schedule to allocate the purchasing costs to the three vendors, assuming Jen uses units purchased to compute activity-based costs.b. Prepare a schedule to allocate the purchasing costs to the three vendors, assuming Jen uses purchases orders to compute activity-based costs.c. Prepare a schedule to allocate the purchasing costs to the three vendors, assuming Jen uses number of shipments to compute activity-based costs.11. (10 pts.)The following represents the financial information of Dan Corporation, a manufacturer of testing equipment:Required:a. Classify these items into prevention, appraisal, internal failure, or external failure costs. Determine the total cost of each category.


Paper#41101 | Written in 18-Jul-2015

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