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Accounting Assignment




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, indirect;materials - 15 percent of purchases;c. 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 and;budgeted 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#80944 | Written in 18-Jul-2015

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