Homework: 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:
Sales ............................................... $220,000
Raw materials purchases ............... $50,000
Direct labor cost ............................ $23,000
Manufacturing overhead cost ........ $59,000
Selling expense ............................. $18,000
Administrative expense ................. $43,000
Inventories:
Beginning Ending
Raw materials ........ $26,000 $35,000
Work in process ..... $18,000 $22,000
Finished goods ....... $42,000 $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: 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 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:
Activities and Activity Measures Estimated Overhead Cost
Supporting direct labor (DLHs) ................. $ 552,000
Setting up machines (setups) .................... 132,480
Parts administration (part types) ................ 780,000
Total ........................................................... $1,464,480
H16Z0 P25P 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 homework according to the following formatting requirements:
(1) The answer should be typed, double spaced, 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 homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.