Description of this paper

accounting problems with all solutions




Question;1) One Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $313,000 for the year, and machine usage is estimated at 125,200 hours.For the year, $337,611 of overhead costs are incurred and 132,700 hours are used.(a)Compute the manufacturing overhead rate for the year. (Round answers to 2 decimal places, e.g. 1.25.)Manufacturing overhead rate $ _________ per machine hour2) The ledger of Cust Company has the following work in process account.Work in Process?Painting5/1 Balance 4,660 5/31 Transferred out ?5/31 Materials 7,1505/31 Labor 3,7005/31 Overhead 1,4105/31 Balance? Production records show that there were 400 units in the beginning inventory, 30% complete, 1,470 units started, and 1,560 units transferred out. The beginning work in process had materials cost of $2,930 and conversion costs of $1,730. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.(a) How many units are in process at May 31?Work in process, May 31 ________units(b) What is the unit materials cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.)The unit materials cost for May $ ______________(c) What is the unit conversion cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.)The unit conversion cost for May $ ________(d) What is the total cost of units transferred out in May? $________(e) What is the cost of the May 31 inventory? $__________3) Wilkins Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company?s operations.Standard CustomDirect labor costs $55,700 $112,000Machine hours 1,300 1,320Setup hours 96 410Total estimated overhead costs are $300,200. Overhead cost allocated to the machining activity cost pool is $196,600, and $103,600 is allocated to the machine setup activity cost pool.(a)Compute the overhead rate using the traditional (plantwide) approach. (Round answers to 2 decimal places, e.g. 12.25%.)Predetermined overhead rate ________% of direct labor cost(b) Compute the overhead rates using the activity-based costing approach.(c) Determine the difference in allocation between the two approaches.4)Using these data from the comparative balance sheet of Rosalez Company, perform vertical analysis. (Round percentages to 1 decimal place, e.g. 12.5%.)Dec. 31, 2012 Dec. 31, 2011Amount Percentage Amount PercentageAccounts receivable$ 546,000 _____% $ 353,000 _____ %Inventory $ 750,500 ______% $ 612,600 ______ %Total assets $3,149,000 _____% $2,841,100 _____ %5) Vertical analysis (common-size) percentages for Vallejo Company?s sales, cost of goods sold, and expenses are listed here.Vertical Analysis 2012 2011 2010Sales 100 % 100% 100%Cost of goods sold 61.7 63.5 65.3 Expenses 24.2 27.8 29.2


Paper#50627 | Written in 18-Jul-2015

Price : $25