Assignment: Managerial Accounting
Part I: Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement
Nish Corporation has provided the following data for the month of April:
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Sales
|
$220,000
|
|
Raw materials purchases
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$50,000
|
|
Direct labor cost .
|
$23,000
|
|
Manufacturing overhead cost
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$59,000
|
|
Selling expense
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$18,000
|
|
Administrative expense
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$43,000
|
|
Inventories:
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Beginning
|
Ending
|
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Raw materials
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$26,000
|
$35,000
|
|
Work in process
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$18,000
|
$22,000
|
|
Finished goods.
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$42,000
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$29,000
|
Required:
1. Prepare a Schedule of Cost of Goods Manufactured in good form for April.
2. Prepare an Income Statement in good form for April.
Part II: Application of Job Order Costing
Scanlon Company has a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The following estimates were used in preparing the predetermined overhead rate for the most recent year:
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Machine-hours.
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95,000
|
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Manufacturing overhead cost
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$1,710,000
|
During the most recent year, a severe recession in the company's industry caused a buildup of inventory in the company's warehouses. The company's cost records revealed the following actual cost and operating data for the year:
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Machine-hours
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75,000
|
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Manufacturing overhead cost
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$1,687,500
|
|
Amount of applied overhead in inventories at year-end:
|
|
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Work in process
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$337,500
|
|
Finished goods
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$253,125
|
|
Amount of applied overhead in cost of goods sold
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$759,375
|
Required:
1. Compute the company's predetermined overhead rate for the year and the amount of underapplied or overapplied overhead for the year.
2. Determine the difference between net operating income for the year if the underapplied or overapplied overhead is allocated to the appropriate accounts rather than closed directly to Cost of Goods Sold.
Part III: Process Costing using Weighted Average
Timberline Associates uses the weighted-average method in its process costing system. The following data are for the first processing department for a recent month:
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Work in process, beginning:
|
|
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Units in process
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2,400
|
|
Percent complete with respect to materials
|
75%
|
|
Percent complete with respect to conversion
|
50%
|
|
Costs in the beginning inventory:
|
|
|
Materials cost
|
$8,400
|
|
Conversion cost
|
$7,200
|
|
Units started into production during the month
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20,800
|
|
Units completed and transferred out
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22,200
|
|
Costs added to production during the month:
|
|
|
Materials cost
|
$97,400
|
|
Conversion cost
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$129,600
|
|
Work in process, ending:
|
|
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Units in process
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1,000
|
|
Percent complete with respect to materials
|
80%
|
|
Percent complete with respect to conversion
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60%
|
Required:
1. Determine the equivalent units of production.
2. Determine the costs per equivalent unit.
3. Determine the cost of ending work in process inventory.
4. Determine the cost of the units transferred to the next department.
Part IV: Process Costing using First-in-First Out (FIFO)
Crone Corporation uses the FIFO method in its processing costing system. The following data concern the company's Assembly Department for the month of October.
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Cost in beginning work in process inventory
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$1,920
|
|
Units started and completed this month .
|
3,130
|
|
|
Materials
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Conversion
|
|
Cost per equivalent unit
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$9.50
|
$20.40
|
|
Equivalent units required to complete the units in beginning work in process inventory
|
360
|
140
|
|
Equivalent units in ending work in process inventory
|
330
|
264
|
Required:
Determine the cost of ending work in process inventory and the cost of units transferred out of the department during October using the FIFO method.
Part V: Activity-Based Costing
Welk Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, H16Z and P25P, about which it has provided the following data:
|
|
H16Z
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P25P
|
|
Direct materials per unit
|
$10.20
|
$50.50
|
|
Direct labor per unit
|
$8.40
|
$25.20
|
|
Direct labor-hours per unit
|
0.40
|
1.20
|
|
Annual production
|
30,000
|
10,000
|
The company's estimated total manufacturing overhead for the year is $1,464,480 and the company's estimated total direct labor-hours for the year is 24,000.
The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:
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Activities and Activity Measures
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Estimated Overhead Cost
|
|
Supporting direct labor (DLHs)
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$ 552,000
|
|
Setting up machines (setups)
|
132,480
|
|
Parts administration (part types)
|
780,000
|
|
Total
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$1,464,480
|
|
|
H16Z
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P25P
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Total
|
|
Supporting direct labor
|
12,000
|
12,000
|
24,000
|
|
Setting up machines
|
864
|
240
|
1,104
|
|
Parts administration
|
600
|
960
|
1,560
|
Required:
1. Determine the manufacturing overhead cost per unit of each of the company's two products under the traditional costing system.
2. Determine the manufacturing overhead cost per unit of each of the company's two products under activity-based costing system.
Format your assignment according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.