Managerial Accounting Quiz 1 Essay

Chapters 1 and 210 Points1. Complete the answer sheet below by placing an X under each heading that identifies the cost involved. The Xs bottom be placed under more than one heading for a single cost. (5 Points)Variable courtFixed CostDirect MaterialsDirect travailManufacturing OverheadPeriod CostMaterials costsXXProduction line workers wagesXXProduction Equipment rentalXX milling machinery Building depreciationXXAdvertising costsXX2. A partial listing of costs incurred at Rust Corporation during August appears belowPurchases of cranky materials $ 135,000Direct labor 73,000Factory Utilities. 11,000 Sales Commissions 69,000 Administrative Salaries.. 101,000 verifying dig up 89,000 Depreciation of Production Equipment. 18,000 Indirect Materials 10,000 Depreciation of Office Copy Machine.. 5,000Raw materials inventory, beginning 97,000Raw materials inventory, ending 84,000Work in cognitive operation inventory, beginning 39,000Work in do inventory, ending 52,000 accurate goods in ventory, beginning 106,000Finished goods inventory, ending 71,000a. Prepare a Schedule of Cost of Goods Manufactured in good form. (3 Points)Direct MaterialsBeginning raw materials inventory $97,000Add Purchase of raw materials 135,000 Raw materials available for use 232,000Deduct Ending raw materials inventory 84,000Raw materials used in yield $148,000Direct Labor 73,000Manufacturing Overhead 118,000Total manufacturing cost 339,000Add Beginning work in act inventory 39,000378,000Deduct Ending work in process inventory 52,000Cost of goods manufactured $326,000b. Compute the Cost of Goods Sold. (2 Points)Finished goods inventory, beginning$106,000Add Cost of goods manufactured 326,000Goods available for sale 432,000Deduct Finished goods inventory, ending 71,000Cost of goods sold $361,000Managerial Acctg Quiz 2 Fall 2012 NAME__ _______________________Chapters 3 and 410 Points1. Pence Company is a manufacturing firm that uses job-order costing. Thecompany applies operating cost to j obs using a predetermined command processing overhead time rate based on machine-hours. At the beginning of the year, the company estimated that it would work 44,000 machine hours and would incur $176,000 in manufacturing overhead cost. During the year the following actual costs and hours were incurredJob A Job B Job C Job D Direct Materials$ 135,000 $ 129,000 $ 98,000 $ 103,000 Direct Labor $ 80,000 $ 85,000 $ 63,000 $ 68,000 Machine Hours 12,000 13,000 8,000 14,000 Number of Units 50 35 60Indirect Materials used $ 34,000Indirect Labor $ 63,000Selling Costs $134,000Factory Utility Costs $ 14,000Factory Depreciation $114,000Administrative Salaries $157,000Required (5 points)a. Compute the predetermined overhead rate176000/44000= 4.00b. Compute the amount of overhead applied to each job.A.12000*4= 48000 B. 13000*4= 52000 C. 8000*4= 32000 D. 14000*4= 56000c. Assuming that Jobs A, B, and D were substituted during the year, compute the total cost charged to each job and the unit cost of the product produced.A.5660B.8543D. 3983d. Compute the eternal sleep in Work In Process at the end of the year. 161,000e. Compute the amount of overhead under or overapplied.176000-161000= 15000f. Assuming the amount is not material, write the journal entry required to close the manufacturing overhead account at the end of the year. Work in Process 161,000Manufacturing Overhead161,0002. Elton Company uses the weighted-average method in its process costing system. The company adds materials at the beginning of the process in Department M. vicissitude costs were 75% complete with respect to the 4,000 units in work in process at May 1 and 50% complete with respect to the 6,000 units in work in process at May 31. During May, 12,000 units were completed and transferred to the nigh department. An analysis of the costs relating to work in process at May 1 and to production activity for May followsMaterialsConversionWork in process 5/1$26,200$19,370Costs added during May$26,900$29,38 0RequiredUsing the weighted-average method, determine the Equivalent Units of Production for Materials and Conversion Costs, the Cost per Equivalent Unitfor Material and Conversion Cost, and the total product cost per Equivalent Unit. (5 Points)Equivalent units of productionMaterials Conversion Transferred to next department.. 12,000 12,000 Ending work in process (materials 6,000 units 100% complete conversion 6,000 units 50% complete).. 6,000 3,000 Equivalent units of production 18,000 15,000 Cost per Equivalent UnitMaterials Conversion TotalCost of beginning work in process.. 26,200 19,370 Cost added during the period.. 26,900 29,380 Total cost (a) 53,100 48,750 Equivalent units of production (b) 18,000 15,000 Cost per equivalent unit, (a) (b). 2.95 3.25 Total $6.20