Nickii Fay
May 11
Which alternative is an example of an overhead cost? A,wage of administration staff? B,material cost for the production? C,wages for workers in the production? D,equipment cost used in the production?
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ChatGPT
May 11
A, wage of administration staff
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Google Gemini AI
May 11
A
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Anonymous
Jun 2
Cost of finished goods manufactured, income statement, manufacturing company. Consider the following account balances for the Canseco Company:
Required
Prepare a schedule for the cost of goods manufactured for 2011.
Revenues for 2011 were $300 000. Prepare the income statement for 2011.
Destin Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost base. Destin allocates manufacturing overhead costs using direct manufacturing labor costs. Destin provides the following information
Required
Compute the actual and budgeted manufacturing overhead rates for 2011.
During March, the job-cost record for Job 626 contained the following information:
Direct materials used ------------------------------$40,000
Direct manufacturing labor costs-----------------$30,000
Compute the cost of Job 626 using
At the end of 2011, compute the under- or over allocated manufacturing overhead under normal costing.
ABC Company reported the following data for the month of August:
Beginning
Ending
Raw materials inventory
28,000.00
?
Work in process inventory
?
25,000.00
Finished goods inventory
37,000.00
55,000.00
August Activity
Direct materials purchases
72,000.00
Cost of goods manufactured
307,000.00
Direct labor incurred
112,000.00
Cost of goods sold
?
Total manufacturing cost
309,000.00
Direct materials used
86,000.00
Manufacturing overhead
?
Required: Determine the missing values.
Information for the ABC Company for the month of January is as follows:
Required: Prepare a statement of cost of goods manufactured and an income statement for the month of January.
Consider the following selected cost data for the xyz Company for 2011.
Budgeted manufacturing overhead costs -------------$7,500,000
Budgeted machine-hours ----------------------------------250,000
Actual manufacturing overhead costs -----------------$7,300,000
Actual machine-hours ---------------------------------------245,000
The company uses normal costing. Its job-costing system has a single manufacturing overhead cost pool. Costs are allocated to jobs using a budgeted machine-hour rate. Any amount of under- or over allocation is written off to Cost of Goods Sold.
Required
Compute the budgeted manufacturing overhead rate.
Prepare the journal entries to record the allocation of manufacturing overhead.
Compute the amount of under- or over allocation of manufacturing overhead. Is the amount material? Prepare a journal entry to dispose of this amount.
Summarized cost data for the year ended Sene 30, 2002 are presented below for KURAZ Printing Press enterprise to illustrate job order costing system. Assume that the enterprise has two jobs in process during the year, job No. 1 and No. 2. Job No 1 was started in the previous year, and had beginning balance of $40,000 on the Hamle 1, 1986. Job No. 2 was started in the current accounting period (Hamle 1, 2002). The following transactions were occurred in the current accounting period (2002):-
Materials were purchased during the fiscal year at a total cost of $ 70,000 on account. On Hamle 1, 2001, the material inventory account shows a balance of $ 15,000 Debit.
During the year, the cost of material requisitioned for production on both jobs amounts Br. 60, 000, of this amount, the direct materials cost traceable to job No. 1 & job No.2 are Br 32,000 & Br. 25,000, respectively. The reminder is cost of indirect material used up during the year on both jobs.
Total wages and salaries of manufacturing employees accrued amounted to Br. 85,000 for the year. The Wages & salaries traceable to job No. 1 and No. 2 are Br. 45,000 and Br. 25,000 respectively. The remainder is considered as indirect labor costs.
The enterprise incurred the following general factory costs applicable to both jobs during the year:
Utilities (Heat, light & powers )………………….Br.25,000
Rent on factory equipment …………………….. 20,000
Miscellaneous factory expense ………………… 2, 000
Total Costs …………………47,000
During the year, the enterprise recognized Br. 12,000 in accrued property taxes on factory & equipment, and $10,000 in insurance expired on factory building, and non-rented equipment.
The enterprise recognized a depreciation of Br.16,000 on factory non-rented equipment and machinery
The company selected the machine hours as an application for FOH costs.
The yearly budgeted FOH cost amounts in total Br. 630,000
The yearly budgeted machine hours requirement for all jobs is 105,000 hours
During the year, 10,000 machine hours were worked on Job No. 1, and 5000 machine hours were worked Job No.2
During the year Job No. 1 have 200 units completed and transferred to warehouse & job No. 2 was still in process on Sene 30, 2002.
By the end of the year ¾ of units in job NO. 1 were shipped to customers at the total sales value of Br. 200,000. The enterprise had no beginning balance of finished goods for this year.
The following non-manufacturing costs were incurred during the year ended: Sene 30, 2002- Office salary- Br. 30,000
Depn on office equipment..7,000
Advertising expense------ 42,000
Other selling & administrative Exp. 8,000
Required:- Record all the above transactions in a general journal form.
At the beginning of September 2003, XYZ Inc. had 1250 units partially assembled units in the Assembly Department. During September 2003, XYZ Inc. placed another 4000 units into production. Data for the Assembly Department for Sept, 2003 are:
Physical units for September, 2003
Work in process, beginning inventory (Sep 1) ………….1250 units
Direct Materials (100% complete)
Conversion costs (80% Complete)
Started during September ……………………………………..4000 units
Completed and transferred out during September--------------- 4250 units
Work in process, ending inventory (Sep 30) 1000units
Direct Materials (100% complete)
Conversion cost (60% complete)
Total Costs for Sep 2003
Work in Process, beginning inventory
Direct Materials (1250 equivalent unit x Br25 per unit …………31,250
Conversion cost (1000, equivalent units x Br15 per unit) ………15,000
46,250
Direct materials costs added during September……………….. 100,000
Conversion costs added during September. ……………………..72,300
Total costs to account for ………………………………………218,550
Required: Using FIFO METHOD
Compute equivalent units for direct materials and conversion costs.
Also calculate the cost per equivalent unit for direct materials and conversion costs, Summarized total cost to account for
XYZ Electronics Company has two departments to manufacture computers, Assembly and testing departments. First component parts are assembled in assembly department and then transferred out to testing department. Direct materials are added somewhere in between the assembly process but conversion costs are added evenly throughout the assembly process. The company uses process costing system. The following data are for the month of January for assembly department.
Physical units Direct material Conversion cost
Beginning WIP 400………………….. $2,484,000 ……………………………..$464,000
Started in the month…………… 2,500
Completed units …………………2,300
Cost added during the month …………………… …16,100,000 ………………………………..6,960,000
Additional information
There are 200 spoiled units 50% of which is abnormal
Degree of completion –Beginning WIP
Direct material (90% complete)
Conversion cost (40% complete)
Degree of completion –Ending WIP
Direct material (60% complete)
Conversion cost (30% complete)
Requirements: Under FIFO method
Summarize the flow of physical units
Compute equivalent unit in terms of each cost
Compute cost per equivalent unit
Assign the cost to units completed and WIP ending
Pass the necessary journal entries
Required
Prepare a schedule for the cost of goods manufactured for 2011.
Revenues for 2011 were $300 000. Prepare the income statement for 2011.
Destin Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost base. Destin allocates manufacturing overhead costs using direct manufacturing labor costs. Destin provides the following information
Required
Compute the actual and budgeted manufacturing overhead rates for 2011.
During March, the job-cost record for Job 626 contained the following information:
Direct materials used ------------------------------$40,000
Direct manufacturing labor costs-----------------$30,000
Compute the cost of Job 626 using
At the end of 2011, compute the under- or over allocated manufacturing overhead under normal costing.
ABC Company reported the following data for the month of August:
Beginning
Ending
Raw materials inventory
28,000.00
?
Work in process inventory
?
25,000.00
Finished goods inventory
37,000.00
55,000.00
August Activity
Direct materials purchases
72,000.00
Cost of goods manufactured
307,000.00
Direct labor incurred
112,000.00
Cost of goods sold
?
Total manufacturing cost
309,000.00
Direct materials used
86,000.00
Manufacturing overhead
?
Required: Determine the missing values.
Information for the ABC Company for the month of January is as follows:
Required: Prepare a statement of cost of goods manufactured and an income statement for the month of January.
Consider the following selected cost data for the xyz Company for 2011.
Budgeted manufacturing overhead costs -------------$7,500,000
Budgeted machine-hours ----------------------------------250,000
Actual manufacturing overhead costs -----------------$7,300,000
Actual machine-hours ---------------------------------------245,000
The company uses normal costing. Its job-costing system has a single manufacturing overhead cost pool. Costs are allocated to jobs using a budgeted machine-hour rate. Any amount of under- or over allocation is written off to Cost of Goods Sold.
Required
Compute the budgeted manufacturing overhead rate.
Prepare the journal entries to record the allocation of manufacturing overhead.
Compute the amount of under- or over allocation of manufacturing overhead. Is the amount material? Prepare a journal entry to dispose of this amount.
Summarized cost data for the year ended Sene 30, 2002 are presented below for KURAZ Printing Press enterprise to illustrate job order costing system. Assume that the enterprise has two jobs in process during the year, job No. 1 and No. 2. Job No 1 was started in the previous year, and had beginning balance of $40,000 on the Hamle 1, 1986. Job No. 2 was started in the current accounting period (Hamle 1, 2002). The following transactions were occurred in the current accounting period (2002):-
Materials were purchased during the fiscal year at a total cost of $ 70,000 on account. On Hamle 1, 2001, the material inventory account shows a balance of $ 15,000 Debit.
During the year, the cost of material requisitioned for production on both jobs amounts Br. 60, 000, of this amount, the direct materials cost traceable to job No. 1 & job No.2 are Br 32,000 & Br. 25,000, respectively. The reminder is cost of indirect material used up during the year on both jobs.
Total wages and salaries of manufacturing employees accrued amounted to Br. 85,000 for the year. The Wages & salaries traceable to job No. 1 and No. 2 are Br. 45,000 and Br. 25,000 respectively. The remainder is considered as indirect labor costs.
The enterprise incurred the following general factory costs applicable to both jobs during the year:
Utilities (Heat, light & powers )………………….Br.25,000
Rent on factory equipment …………………….. 20,000
Miscellaneous factory expense ………………… 2, 000
Total Costs …………………47,000
During the year, the enterprise recognized Br. 12,000 in accrued property taxes on factory & equipment, and $10,000 in insurance expired on factory building, and non-rented equipment.
The enterprise recognized a depreciation of Br.16,000 on factory non-rented equipment and machinery
The company selected the machine hours as an application for FOH costs.
The yearly budgeted FOH cost amounts in total Br. 630,000
The yearly budgeted machine hours requirement for all jobs is 105,000 hours
During the year, 10,000 machine hours were worked on Job No. 1, and 5000 machine hours were worked Job No.2
During the year Job No. 1 have 200 units completed and transferred to warehouse & job No. 2 was still in process on Sene 30, 2002.
By the end of the year ¾ of units in job NO. 1 were shipped to customers at the total sales value of Br. 200,000. The enterprise had no beginning balance of finished goods for this year.
The following non-manufacturing costs were incurred during the year ended: Sene 30, 2002- Office salary- Br. 30,000
Depn on office equipment..7,000
Advertising expense------ 42,000
Other selling & administrative Exp. 8,000
Required:- Record all the above transactions in a general journal form.
At the beginning of September 2003, XYZ Inc. had 1250 units partially assembled units in the Assembly Department. During September 2003, XYZ Inc. placed another 4000 units into production. Data for the Assembly Department for Sept, 2003 are:
Physical units for September, 2003
Work in process, beginning inventory (Sep 1) ………….1250 units
Direct Materials (100% complete)
Conversion costs (80% Complete)
Started during September ……………………………………..4000 units
Completed and transferred out during September--------------- 4250 units
Work in process, ending inventory (Sep 30) 1000units
Direct Materials (100% complete)
Conversion cost (60% complete)
Total Costs for Sep 2003
Work in Process, beginning inventory
Direct Materials (1250 equivalent unit x Br25 per unit …………31,250
Conversion cost (1000, equivalent units x Br15 per unit) ………15,000
46,250
Direct materials costs added during September……………….. 100,000
Conversion costs added during September. ……………………..72,300
Total costs to account for ………………………………………218,550
Required: Using FIFO METHOD
Compute equivalent units for direct materials and conversion costs.
Also calculate the cost per equivalent unit for direct materials and conversion costs, Summarized total cost to account for
XYZ Electronics Company has two departments to manufacture computers, Assembly and testing departments. First component parts are assembled in assembly department and then transferred out to testing department. Direct materials are added somewhere in between the assembly process but conversion costs are added evenly throughout the assembly process. The company uses process costing system. The following data are for the month of January for assembly department.
Physical units Direct material Conversion cost
Beginning WIP 400………………….. $2,484,000 ……………………………..$464,000
Started in the month…………… 2,500
Completed units …………………2,300
Cost added during the month …………………… …16,100,000 ………………………………..6,960,000
Additional information
There are 200 spoiled units 50% of which is abnormal
Degree of completion –Beginning WIP
Direct material (90% complete)
Conversion cost (40% complete)
Degree of completion –Ending WIP
Direct material (60% complete)
Conversion cost (30% complete)
Requirements: Under FIFO method
Summarize the flow of physical units
Compute equivalent unit in terms of each cost
Compute cost per equivalent unit
Assign the cost to units completed and WIP ending
Pass the necessary journal entries
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