ACT 5140 – Accounting For
Decision Makers
Week #3 – HW Assignment
You MUST show all work in order to receive credit
for the problems.
Problem 1
Chambers
Manufacturing Firm had following information for April 2015:
Beginning Raw Materials Inventory $ 25,000
Beginning Work-in-process Inventory 30,000
Beginning Finished Goods Inventory 32,000
Ending Raw Materials Inventory 24,000
Ending Work-in-process Inventory 28,000
Ending Finished Goods Inventory 34,000
Raw materials purchased 250,000
Assembly line labor costs 175,000
Sales Revenue 875,000
Factory supplies used 4,500
Depreciation on factory 22,000
Depreciation on production machinery 35,000
Depreciation on sales office 13,000
Depreciation on administrative equipment 9,000
Sales salaries 78,000
Factory supervision 65,000
Factory security guard cost 33,000
Office security guard cost 28,000
Required:
- Prepare a cost of goods manufactured schedule.
- Prepare a cost of goods sold schedule.
- Prepare an Income Statement.
Problem 2
Radius Home
Interiors, Inc., began two jobs during July 2015. The company had no beginning inventory. The following information is available:
Job
11 Job 12
Direct material $11,800 $12,800
Direct labor $ 9,600
$ 7,300
Machine hours 250
180
The
company estimates manufacturing overhead for 2015 is $130,000, and the company
estimates that 5,200 machine hours will be used during the year. Radius applies overhead to production based
on machine hours.
Required:
1. Calculate
the cost of Job 11.
2. Calculate
the cost of Job 12.
Problem 3
The
Merker Manufacturing Company has the following job cost sheets on file. They
represent jobs that have been worked on during April of the current year. This
table summarizes information provided on each sheet:
|
Number |
Total |
Status |
|
544 |
$15,050 |
Finished |
|
545 |
$22,400 |
Finished |
|
546 |
$ 7,500 |
Finished |
|
547 |
$ 4,300 |
Finished |
|
548 |
$33,000 |
Unfinished |
|
549 |
$62,000 |
Finished |
|
550 |
$14,600 |
Unfinished |
|
551 |
$22,200 |
Finished |
|
552 |
$ |
Finished |
|
553 |
$ |
Unfinished |
Required:
1. What is the cost of goods sold for
the month of April?
2. What is the cost of the Work in Process inventory on April 30?
3. What is the cost of the finished goods inventory on April 30?
Problem 4
Chaplin
Corporation produces a product that passes through two departments. For October,
the following equivalent unit schedule was prepared for the first department:
Materials Conversion
Units in
Beginning Work in Process 15,000
100% 35%
Units
Started 284,000
Units in
Ending Work in Process 24,000 100% 30%
Costs
assigned to beginning work-in-process:
Materials $77,490
Conversion
30,304
Manufacturing
costs incurred during the month:
Materials $75,000
Conversion
60,000
Required:
1.
Compute
the number of equivalent units for materials and for conversion.
2. Compute the unit cost for October using the
weighted average method. (Round unit costs to 2 decimal places.)
3. Determine the cost of goods transferred out.
4. Determine the cost of ending work-in-process.
