accounting practice set

Project Description:

manufacturing process information
andrew’s airplanes, a corporation, started a small manufacturing plant that fabricates plastic airplanes. the manufacturing process starts by melting the plastic into a semi-liquid state and then pouring the material into a mold press. the final step of the process is to add the three wheels. the resulting airplanes are then sent to quality control and if the inspection is approved, they are transferred to finished goods. this process is completely automated.
direct material, plastic is added 100% at the beginning of the process. wheels are added 100% at the end of the process.
conversion costs are added equally throughout the process. conversion is 25% complete for the ending inventory work in process and the wheels are 0% complete as to ending inventory.
at the beginning of the accounting period, andrew’s airplanes estimated that production would be 150,000 units. our predetermined factory overhead rate is based on an estimated foh of $30,000. this information is to be used to determine the application rate for overhead.
• estimated and actual direct labor costs totaled $88,775.
• actual factory overhead costs totaled $27,000.
• the following information is available concerning direct materials.
direct materials-plastic
beginning inventory 0 pounds @ $3.00 per unit
purchase of plastic 75,000 pounds @ $3.00 per unit
ending inventory 5,000 pounds @ $3.00 per unit
one pound of plastic makes 2 plastic airplanes and the company started 140,000 airplanes.
direct materials-wheels
beginning inventory 0 wheels @ .02 per wheel
purchases 450,000 wheels @ .02 per wheel
ending inventory 60,000 wheels @ .02 per wheel

the work-in-process account has the following information
beginning work-in-process contains 0 airplanes
ending work-in-process contains 10,000 airplanes

the finished goods account has the following information
beginning finished goods contains 0 airplanes
ending finished goods contains 15,000 airplanes






the selling price is $5 per airplane and 115,000 airplanes were sold

selling and administrative costs totaled $130,000

note: tax rate is 30 %.
(round your conversion cost per unit to the nearest cent and everything else to the nearest dollar.)































andrew’s airplanes, inc.
statement of cash flows
for the year ended december 31, 2015

cash flows from operating activities
net income
adjustments to reconcile net income to
net cash flow from operating activities
depreciation
amortization
gain or loss
changes in current operating assets and liabilities
net cash flow from operating activities
cash flows from investing activities
cash received from sale
less cash used for purchases
net cash flow from investing activities
cash flow from financing activities
cash received from sale
less cash paid dividends or long-term debt
net cash flow from financing activities
increase or decrease in cash
cash at the beginning of the year
cash at the end of the year














andrew’s airplanes, inc.
cost of production report
for the year ended december 31, 2015

plastic conversion costs total
beginning balance
units xxx xxx xxx
total beginning costs transferred in xxx

started and completed xxx xxx xxx

costs transferred to finished goods xxx

ending costs in work-in-process xxx xxx xxx

total costs xxx


costs to account for
beginning work-in process
direct materials
direct labor
applied factory overhead
total costs














step (1) determine the predetermined oh rate



step (2) determine the total number of airplanes to account for – see example on page 8



step (3) determine the equivalent units schedule – see example on page 8



step (4) determine the total costs for the plastic and the unit plastic cost per airplane



step (5) determine the total conversion cost and the conversion cost per airplanes using the predetermined rate



step (6) determine the total equivalent cost per airplane (plastic cost per unit plus the conversion cost per unit)



step (7) production report - see provided example on page 11



step (8) wip and finished goods ending inventory and cogs calculation



step (9) income statement
Skills Required:
Project Stats: Edited

Price Type: Fixed

Project Budget: $0 to $10
Completed
Total Proposals: 8
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