Problem 1 (23 points) This particular company uses job-order costing system to estimate the cost of...
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Problem 1 (23 points) This particular company uses job-order costing system to estimate the cost of the products they sell. For the month of October that just ended, they processed products from four different customers. Relevant data is shown below: Customer (Job) A ABCD с Units Manufactured 3,000 2,900 2,800 2,200 Direct Materials $9,000 $8,800 $8,700 $8,000 Direct Labor $15,600 $15,300 $14,800 $12,900 DLH/unit 1 1.4 1.3 1.1 The total budgeted overhead for the year was $500,000, the company estimates to use 100,000 direct labor hours for this year expected demand and decided to apply overhead based on direct labor hours. All jobs began during this month. Jobs A and B were completed, but Jobs C and D were not finished. Job A was sold during the month. All products are sold at 125% of their cost. Calculate the following: a) The cost of goods manufactured at the end of the month. (6 pts) b) The cost of goods sold at the end of the month. (2 pts) c) The sales revenue for the month. (3 pts) d) The balance of the work in process (WIP) inventory at the end of the month. (2 pts) e) The balance of the finished goods inventory at the end of the month. (2 pts) f) The cost per unit for Job A. (2 pts) g) The cost per unit for Job B. (2 pts) h) The cost per unit for Job C. (2 pts) i) The cost per unit for Job D. (2 pts) Problem 1 (23 points) This particular company uses job-order costing system to estimate the cost of the products they sell. For the month of October that just ended, they processed products from four different customers. Relevant data is shown below: Customer (Job) A ABCD с Units Manufactured 3,000 2,900 2,800 2,200 Direct Materials $9,000 $8,800 $8,700 $8,000 Direct Labor $15,600 $15,300 $14,800 $12,900 DLH/unit 1 1.4 1.3 1.1 The total budgeted overhead for the year was $500,000, the company estimates to use 100,000 direct labor hours for this year expected demand and decided to apply overhead based on direct labor hours. All jobs began during this month. Jobs A and B were completed, but Jobs C and D were not finished. Job A was sold during the month. All products are sold at 125% of their cost. Calculate the following: a) The cost of goods manufactured at the end of the month. (6 pts) b) The cost of goods sold at the end of the month. (2 pts) c) The sales revenue for the month. (3 pts) d) The balance of the work in process (WIP) inventory at the end of the month. (2 pts) e) The balance of the finished goods inventory at the end of the month. (2 pts) f) The cost per unit for Job A. (2 pts) g) The cost per unit for Job B. (2 pts) h) The cost per unit for Job C. (2 pts) i) The cost per unit for Job D. (2 pts)
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Here are the calculations a Cost of Goods Manufactured Direct Materials Job A 8000 Job B 8800 Job C ... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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