The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2014.
Raw Materials
Factory Insurance
$ 4600
Inventory 7/1/13
$ 48000
Factory Machinery
Raw Materials
Depreciation
16,000
Inventory 6/30/14
39,600
Factory Utilities
27,600
Finished Goods
Office Utilities Expenses
8,650
Inventory 7/1/13
96,000
Sales Revenue
534,000
Finished Goods
Sales Discounts
4,200
Inventory 6/30/14
75,900
Plant Manager’s Salary
58,000
Works in Process
Factory Property Taxes
9,600
Inventory 7/1/13
19,800
Factory Repairs
1,400
Work in Process
Raw materials Purchases
96,400
Inventory 6/30/14
18,600
Cash
32,000
Direct Labor
139,250
Indirect Labor
24,460
Account Receivable
27,000
Instructions
Prepare a cost of goods manufactured schedule (Assume all raw materials used were direct material)
1) Prepare an income statement through gross profit.
2) Prepare the current assets section of the balance sheet at June 30, 2014.
CHAPTER 2 (Job Order Costing)
P2-4A
Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department D, direct labor hours in Department E, and machine hours in Department K.In establishing the predetermined overhead rates for 2014, the following estimates were made for the year.
The Term Paper on Raw Materials 000 Cost Total
PROJECT FEASIBILITY REPORT OF DYEING UNITOFINTERSTOFF CLOTHING LIMITEDGULSHAN, DHAKA. INTRODUCTION The company has existing Woven & Knit Garments, Knitting-Knit Dyeing & Other related Industries and exporting Garments for last 10 years to Europe, USA & Canada successfully. School Dress is one of the major exporting items which requires T. C. 65/35 dyed fabric and depends on imported ...
Department
Manufacturing overhead
$1,200,000
$1,500,000
$900,000
Direct labor costs
$1,500,000
$1,250,000
$450,000
Direct labor hours
100,000
125,000
40,000
Machine hours
400,000
500,000
120,000
During January, the job cost sheets showed the following costs and production data.
Department
Direct materials used
$140,000
$126,000
$78,000
Direct labor costs
$120,000
$110,000
$37,500
Manufacturing overhead incurred
$99,000
$124,000
$79,000
Direct labor hours
8,000
11,000
3,500
Machine hours
34,000
45,000
10,400
Instructions
a) Compute the predetermined overhead rate for each department. b) Compute the total manufacturing costs assigned to jobs in January in each department. c) Compute the under-or over applied overhead for each department at January 31.
CHAPTER 3 (Process Costing)
P3-2A
Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging .In the Molding Department, the urethane, rubber, plastic and other materials are molded into bowling balls. In the Packaging Department the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2014 are presented below.
Production Data
June
Beginning work in process units
-0-
Units started into production
22,000
Ending work in process units
2,000
Percent complete –ending inventory
40%
Cost Data
Materials
$ 198000
Labor
53,600
Overhead
112,800
Total
$ 364, 4000
The Essay on Laws And Regulation Cobra Labor Department
Touro University International Legal Implications for Human Resource Management MGT 516 Module 1 CASE MGT 516 CASE 1- M. Joiner In your opinion, do you think that both of these laws are as effective today as they were at the time they were passed? What recommendations would you make to update and improve both laws? The Fair Labor Standards have changed tremendous since it have been implemented. It ...
Instructions
a) Prepared a schedule showing physical units of production
b) Determine the equivalent units of production for materials and conversion costs. c) Compute the unit costs of production.
d) Determine the costs to be assigned to the unit transferred out and in process for June. e) Prepare a production cost report for the Molding Department for the month of June.
CHAPTER 4 (Activity-Based Costing)
P4-1A
Fire Out, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers ;(1) a home fire extinguisher and (2) a commercial fire extinguisher .The home model is a high volume (54,000 units), half –gallon cylinder that holds 2 1/ 2 pounds of multi-purpose dry chemical at 480 PSI.The commercial model is a low –volume 910, 2000 units), two-gallon cylinder that holds 10 pounds of multipurpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or {1.5hrs.X (54,000+10, 2000)}.Expected annual manufacturing overhead is $1,557,480.Thus, the predetermined overhead rate is $16.17 OR ($1,557,480 /96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $ 19 per unit for both the home and the commercial models. The company’s managers identified six activity cost pools and related cost drivers and accumulated overhead by costs pool as follows.
Expected Use of Drivers by Product
Activity Cost Pools
Cost Drivers
Estimated Overhead
Expected use of cost drivers
Home
Commercial Receiving
Pounds
$ 70350
335,000
215,000
120,000
Forming
Machine hours
150,500
35,000
27,000
8,000
Assembling
Number of parts
412,300
217,000
165,000
52,000
Testing
Number of tests
51,000
25,500
15,500
10,000
Painting
Gallon
52,580
5,258
3,680
1,578
Packing and shipping
Pounds
The Essay on International Product Life Cycle Theory
Yanko Petrov, CEO of a Bulgarian based dairy products manufactuer is gathering information to consider foreign direct investment and a location for their new product. Since this is a new product (special kind of feta cheese) and is not being sold anywhere, I would recommend following the international product life cycle theory. The international product life cycle theory constitutes 3 different ...
820,750
335,000
215,000
120,000
Instructions
a) Under traditional product costing, compute the total unit cost of each product. Prepare a simple comparative schedule of the individual costs by product (Similar to Illustration 4-10).
b) Under ABC, prepare a schedule showing the computations of the activity –Based overhead rates)per cost driver) c) Prepare a schedule assigning each activity’s overhead cost pool to each product based on the use of cost drivers (Include a computation of overhead cost per unit, rounding to the nearest cent. d) Compute the total cost per unit for each product under ABC. e) Classify each of the activities as a value added activity or non value added activity. f) Comment on (1) the comparative overhead cost per unit for the two products under ABC, and (2) the comparative total costs per unit under traditional costing and ABC. CHAPTER 5 (Cost-Volume –Profit Analysis)
E5-3
The controller of Furgee Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.
Month
Total
Maintenance Costs
Total
Machine Hours
January
$2,500
300
February
3,000
350
March
3,600
500
April
4,500
690
May
3,200
400
June
4,900
700
Instructions
a) Determine the fixed –and variable –cost components using the high-low method. b) Prepare a graph showing the behavior of maintenance costs, and indentify the fixed-and variable –cost elements. Use 100 hour increments and $ 1,000 cost increments.
E5-9
The Green Acres Inn is trying to determine its break-even point. The inn has 50 rooms that it rents at $ 60 a night. Operating costs are as follows.
Salaries
$6,200
per month
Utilities
$1,100
per month
Depreciation
$1,000
per month
Maintenance
$100
per month
Maid services
$11
The Term Paper on Cost-Salvage Value/Total units of production
Salta Company installs a manufacturing machine in its factory at the beginning of the year at a cost of $87,000. The machine’s useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines’ second year depreciation under the units of production method: Answer: $16,900 ...
per room
Other costs
$28
per room
Instructions
Determine the inn’s break –even point in (a) number of rented rooms per month and (b) dollars.
