1. It has been suggested that it is not possible to determine the point at which financial accounting and managerial accounting diverge. What does that mean?
Your response should be at least 200 words in length. For problems, be sure to answer all questions and provide all requested information.
2. Outdoor Furniture Company has inventory balances at the end of August as follows:
|
Materials inventory
|
$21,360
|
|
Work-in-Process inventory
|
15,112
|
|
Finished goods inventory
|
17,120
|
Job order cost cards for jobs in process at the company as of the end of September were as follows:
|
Job Number
|
Direct Materials
|
Direct Labor
|
Mfg Overhead
|
|
48A
|
$1,596
|
$1,290
|
$1,677
|
|
48B
|
$1,492
|
$1,380
|
$1,794
|
|
48C
|
$1,984
|
$1,760
|
$2,288
|
|
48D
|
$1,608
|
$1,540
|
$2,002
|
Materials purchased and received in September:
|
September 4
|
$33,120
|
|
September 16
|
$28,600
|
|
September 22
|
$31,920
|
Direct labor costs for September:
|
September 15 payroll
|
$23,680
|
|
September 29 payroll
|
$25,960
|
Predetermined overhead rate:
130% of direct labor costs
Direct material transferred to production during September:
|
September 15 payroll
|
$23,680
|
|
September 29 payroll
|
$25,960
|
Finished goods with a 75% markup over cost were sold during September for $230,000.
a. Compute the cost of units completed during the month.
b. What was the total cost of units sold during the month?
c. What are ending inventory balances?
Your response should be at least 200 words in length.