Get Distinction in Accounting Winter Research Papers
19. WoodGrain Technology makes home office furniture from fine hardwoods. The company uses a...
WoodGrain Technology makes home office furniture from fine hardwoods. The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Preparation Department is based on machine- hours. and the rate in the Fabrication Department is based on direct labor-hours. At the beginning of the year, the company's management made the following estimates for the year:
Department | ||
Preparation | Fabrication | |
Machine-hours | 80,000 | 21,000 |
Direct labor-hours a | 35,000 | 50,000 |
Direct materials cost | $190,000 | $400,000 |
Direct labor cost | $280,000 | $530,000 |
Fixed manufacturing overhead cost | $256,000 | $520,000 |
Variable manufacturing overhead per machine-hour | $2.00 | - |
Variable manufacturing overhead per direct labor-hour | - | $4.00 |
Job 127 was started on April 1 and completed on May 12. The company's cost records show the following information concerning the job:
Department | ||
Preparation | Fabrication | |
Machine-hours | 350 | 70 |
Direct labour-hours | 80 | 130 |
Direct materials cost | $940 | $1,200 |
Direct labour cost | $710 | $980 |
Required:
1. Compute the predetermined overhead rate used during the year in the Preparation Department. Compute the rate used in the Fabrication Department.
2. Compute the total overhead cost applied to Job 127.
3. What would be the total cost recorded for Job 127? If the job contained 25 units, what would be the unit product cost?
4. At the end of the year, the records of WoodGrain Technology revealed the following actual cost and operating data for all jobs worked on during the year:
Department | ||
Preparation | Fabrication | |
Machine-hours | 73,000 | 24,000 |
Direct labour-hours | 30,000 | 54,000 |
Direct materials cost | $165,000 | $420,000 |
Manufacturing overhead cost | $390,000 | $740,000 |
What was the amount of underapplied or overapplied overhead in each department at the end of the year?
20. 5.6 - Please use my question and explain how you got your answer!
"Blast it!" said David Wilson, president of Teledex Company. "We've just lost the bid on the Koopers job by $10,200. It seems we're either too high to get the job or too low to make any money on half the jobs we bid."
Teledex Company manufactures products to customers' specifications and operates a job- order costing system. Manufacturing overhead cost is applied to jobs on the basis of direct labor cost. The following estimates were made at the beginning of the year:
Department
Fabricating Machining Assembly Total plant
Direct labor $300,000 $201,000 $401,000 $902,000
Manufacturing overhead $540,000 $804,000 $100,250 $1,444,250
Jobs require varying amounts of work in the three departments. The Koopers job, for example, would have required manufacturing costs in the three departments as follows:
Department
Fabricating Machining Assembly Total plant
Direct materials $11,900 $900 $5,500 $18,300
Direct labor $6,500 $1,700 $13,100 $21,300
Manufacturing overhead ? ? ? ?
The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs.
Requirement 1:
Assuming the use of a plantwide overhead rate:
a. Compute the rate for the current year. (Round your answer to the nearest whole percent. Omit the "%" sign in your response.)
Predetermined overhead rate % of direct labor cost
Requirement 2:
Suppose that instead of using a plantwide overhead rate, the company had used a separate predetermined overhead rate in each department. Under these conditions:
a. Compute the rate for each department for the current year. (Omit the "%" sign in your response.)
Predetermined
overhead rate
Fabricating Department %
Machining Department %
Assembly Department %
21. Gunflint Adventures operates an airplane service that takes fishing parties to a remote lake...
Gunflint Adventures operates an airplane service that takes fishing parties to a remote lake resort in northern Manitoba, Canada. Individuals must purchase their tickets at least one month in advance during the busy summer season. The company adjusts its accounts only once each month. Selected balances appearing in the company’s June 30 adjusted trial balance appear as follows:
|
Debit Credit
Other Information
1. The airplane is being depreciated over a 20-year life with no residual value.
2. Unearned passenger revenue represents advance ticket sales for bookings in July and August at $300 per ticket.
3. Six months’ airport rent had been prepaid on May 1.
4. The unexpired insurance is what remains of a 12-month policy purchased on February 1.
5. Passenger revenue earned in June totaled $75,000.
Instructions
a. Determine the following:
1. The age of the airplane in months.
2. The monthly airport rent expense.
3. The amount paid for the 12-month insurance policy on February 1.
b. Prepare the adjusting entries made on June 30 involving the following accounts:
1. Depreciation Expense: Airplane
2. Airport Rent Expense
3. Insurance Expense
4. Passenger Revenue Earned
22. The following information is available for Robstown Corporation for 20Y8: Inventories January...
The following information is available for Robstown Corporation for 20Y8:
Inventories | January 1 | December 31 |
Materials | $351,000 | $435,800 |
Work in process | 625,200 | 590,400 |
Finished goods | 607,400 | 571,000 |
December 31 | |
Advertising expense | $ 296,600 |
Depreciation expense-office equipment | 43,560 |
Depreciation expense-factory equipment | 55,880 |
Direct labor | 669,000 |
Heat, light, and power-factory | 22,060 |
Indirect labor | 76,000 |
Materials purchased | 658,200 |
Office salaries expense | 183,300 |
Property taxes-factory | 18,300 |
Property taxes-office building | 31,200 |
Rent expense-factory | 32,500 |
Sales | 3,011,000 |
Sales salaries expense | 417,000 |
Supplies-factory | 16,000 |
Miscellaneous costs-factory | 9,200 |
Required: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
a. Prepare the 20Y8 statement of cost of goods manufactured. For those boxes in which you must enter subtracted or negative numbers use a minus sign.* | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
b. Prepare the 20Y8 income statement. Enter all amounts as positive numbers.*
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23. Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the...
Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, 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 2017 are presented below.
Production Data | June | ||
Beginning work in process units | 0 | ||
Units started into production | 25,080 | ||
Ending work in process units | 2,280 | ||
Percent complete—ending inventory | 40 | % | |
Cost Data | ||
Materials | $225,720 | |
Labor | 61,104 | |
Overhead | 128,592 | |
Total | $415,416 |
ROSENTHAL COMPANY | ||||||||
Equivalent Units | ||||||||
Quantities | Physical |
| Conversion | |||||
Units to be accounted for | ||||||||
Work in process, June 1 | ||||||||
Started into production | ||||||||
Total units | ||||||||
Units accounted for | ||||||||
Transferred out | ||||||||
Work in process, June 30 | ||||||||
Total units | ||||||||
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| Conversion |
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Unit costs | ||||||||
Total Costs | $ | |||||||
