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ACC206 Week Three Assignment

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Question;ACC 206 Week Three Assignment;Please;complete the following five exercises below in either Excel or a word document;(but must be single document). You must show your work where appropriate;(leaving the calculations within Excel cells is acceptable). Save the document;and submit it in the appropriate week using the Assignment Submission button.;1. Overhead application: Working backward;The;Towson Manufacturing Corporation applies overhead on the basis of machine;hours. The following divisional information is presented for your review;Division;A;Division;B;Actual;machine hours;22,500;?;Estimated;machine hours;20,000;?;Overhead;application rate;$4.50;$5.00;Actual;overhead;$110,000;?;Estimated;overhead;?;$90,000;Applied;overhead;?;$86,000;Over-;(under-) applied overhead;?;$6,500;Find the;unknowns for each of the divisions.;2.;Computationsusing a job;order system;General;Corporation employs a job order cost system. On May 1 the following balances;were extracted from the general ledger;Work;in process $ 35,200;Finished;goods 86,900;Cost;of goods sold 128,700;Work;in Process consisted of two jobs, no. 101 ($20,400) and no. 103 ($14,800).;During May, direct materials requisitioned from the storeroom amounted to;$96,500, and direct labor incurred totaled $114,500. These figures are;subdivided as follows;Direct Materials;Direct Labor;Job No.;Amount;Job No.;Amount;101;$5,000;101;$7,800;115;19,500;103;20,800;116;36,200;115;42,000;Other;35,800;116;18,000;$96,500;Other;25,900;$114,500;Job;no. 115 was the only job in process at the end of the month. Job no. 101 and;three "other" jobs were sold during May at a profit of 20% of cost.;The "other" jobs contained material and labor charges of $21,000 and;$17,400, respectively.;General;applies overhead daily at the rate of 150% of direct labor cost as labor;summaries are posted to job orders. The firm's fiscal year ends on May 31.;Instructions;a.;Compute the total;overhead applied to production during May.;b.;Compute the cost of the;ending work in process inventory.;c.;Compute the cost of;jobs completed during May.;d.;Compute the cost of;goods sold for the year ended May 31.;3.;High-low;method;The following cost data pertain to 20X6 operations of Heritage Products;Quarter;1;Quarter;2;Quarter;3;Quarter;4;Shipping;costs;$58,200;$58,620;$60,125;$59,400;Orders;shipped;120;140;175;150;The;company uses the high-low method to analyze costs.;a.;Determine the variable;cost per order shipped.;b.;Determine the fixed;shipping costs per quarter.;c.;If present cost;behavior patterns continue, determine total shipping costs for 20X7 if activity;amounts to 570 orders.;4. Break-even and other CVP;relationships;Cedars Hospital has average;revenue of $180 per patient day. Variable costs are $45 per patient day, fixed;costs total $4,320,000 per year.;a.;How many patient days does the;hospital need to break even?;b.;What level of revenue is needed to;earn a target income of $540,000?;c.;If variable costs drop to $36 per;patient day, what increase in fixed costs can be tolerated without changing the;break-even point as determined in part (a)?;5.;Direct and absorption costing;The information that follows;pertains to Consumer Products for the year ended December 31, 20X6.;Inventory, 1/1/X6;24,000 units;Units manufactured;80,000;Units sold;82,000;Inventory, 12/31/X6;? units;Manufacturing costs;Direct materials;$3 per unit;Direct labor;$5 per unit;Variable factory overhead;$9 per unit;Fixed factory overhead;$280,000;Selling & administrative expenses;Variable;$2 per unit;Fixed;$136,000;The unit selling price is $26.;Assume that costs have been stable in recent years.;Instructions;a.;Compute the number of units in the;ending inventory.;b.;Calculate the cost of a unit;assuming use of;1.;Direct costing.;2.;Absorption costing.;c.;Prepare an income statement for;the year ended December 31, 20X6, by using direct costing.;d.;Prepare an income statement for;the year ended December 31, 20X6, by using absorption costing.

 

Paper#41436 | Written in 18-Jul-2015

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