7‚000 | | | Raw materials used in production | | $ 33‚000 | | Direct labor | | 40‚000 | | Manufacturing overhead cost applied to work in process | | 50‚000 | | Total manufacturing cost | | 123‚000 | | Add: Work in process‚ beginning | | 6‚000 | | | | 129‚000 | | Deduct: Work in process‚ ending | | 7‚500 | | Cost of goods manufactured | | $121‚500 | | | | | Problem 3-24 (60 minutes) 1. a. b. | Actual manufacturing
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1 2 2. Hirpara Inc. has provided the following data for July: Required: Prepare T-accounts for Raw Materials‚ Work in Process‚ Finished Goods‚ and Manufacturing Overhead‚ and Cost of Goods Sold. Record the beginning balances and each of the transactions listed above. Finally‚ determine the ending balances. 3 3. Whether a company uses process costing or job-order costing depends on its industry. A number of companies in different industries are listed below: Brick manufacturer
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Q1: There are two different types of cost accounting systems: Job order cost systems and process cost systems. How does management decide whether to use a job order cost system or a process cost system in any given manufacturing situation? Explain. Job order cost system is used in situations where many different products are produced each period. For example‚ a Levi Strauss clothing factory would typically make many different types of jeans for both men and women during a month. A particular order
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The Rolling Stones once said: "You can’t always get what you want.’ T IS IS as well as the markets that true. For most people (even Mick Jagger)‚ that there are limits to what you can these units comprise. have or do is a simple fact of life learned in early childhood. For economists‚ however‚ it can be an obsession. Much of microeconomics is aboutdimu-s-the limited incomes that consumers can spend on goods and services‚ the limited budgets and technical know-how that firms can use to produce
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Chapter 5 DEMAND ANALYSIS QUESTIONS & ANSWERS Q5.1 Q5.1 Is the economic demand for a product determined solely by its usefulness? ANSWER No‚ two basic conditions must be met before economic demand is created. First‚ there must be value associated with acquiring and using the good or service. For individuals‚ this value is in terms of utility‚ well being‚ or satisfaction through consumption. For firms‚ this value is measured in terms of the profit created through resource employment. Second‚ there
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company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year: Computer-hours 60‚000 Manufacturing overhead cost $1‚208‚000 Inventories at year-end: Raw materials $420‚000 Work in process $120‚000 Finished goods $1‚030‚000 Cost of goods sold $2‚770‚000 Required: 1. Compute the company’s predetermined overhead rate for the year. 2. Compute the underapplied or overapplied overhead for the year. 3. Assume the company closes
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Sales persons salary CEO and CFO salary Advertisement expense Depreciation of factory equipment Factory utilities Oil and lubricants for factory equipment‚ and other miscellaneous materials used in production Wood inventory‚ Sept. 1 Work-in-process inventory‚ Sept. 1 Finished wooden beds‚ Sept. 1 Wood purchases Cost of goods manufactured Sales revenue Gross margin Net income Assume there are no other expenses or costs in MM Co. $95‚000 $67‚000 $15‚000 $7‚000 $12‚000 $41‚000 $44
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lets review the job and process costing sytems: Job order cost system: • Jobs are assigned to each job or batch • A job may be for a specific order of inventory Process cost system : • This cost system is generally used when a large volume of similar products are manufactured Answers: a. A custom yacht builder – job order costing b. A golf course designer – job order costing c. A potato chip manufacturer – process costing d. A business
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according to the accounting system? 5. Direct labor made up $8‚000 of the $40‚000 ending Work in Process inventory balance. Supply the information missing below: Direct materials . . . . . . . . . . . . . . . $ ? Direct labor . . . . . . . . . . . . . . . . . . . 8‚000 Manufacturing overhead . . . . . . . . . ? Work in process inventory . . . . . . . $40‚000 SOLUTION: 1. a. [pic] |b. |Actual manufacturing
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Problem 19-2: Vt. Sugar Enterprises Given: Syrup Sugar Total Units produced 20‚000 1‚000 21‚000 Unit selling price $15.00 $2.00 Total process costs: After split-off $12‚000 $280 $12‚280 Joint costs $100‚000 a. Calculate the cost of the syrup if the sugar is considered a by-product and the gross margin from its sale is considered to be a reduction of syrup costs. Products Sales Value Costs beyond split-off Difference Joint costs allocation Syrup $300‚000 12‚000 288‚000
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