Question

The University of Chicago Press is wholly owned by the university. It performs the bulk of its work for other university departments, which pay as though the press were an outside business enterprise. The press also publishes and maintains a stock of books for general sale. The press uses normal costing to cost each job. Its job- costing system has two direct- cost categories (direct materials and direct manufacturing labor) and one indirect- cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs).
The following data (in thousands) pertain to 2012:
Direct materials and supplies purchased on credit........... $ 820
Direct materials used ...................... 750
Indirect materials issued to various production departments....... 120
Direct manufacturing labor ................... 1,360
Indirect manufacturing labor incurred by various production departments.. 930
Depreciation on building and manufacturing equipment........ 440
Miscellaneous manufacturing overhead* incurred by various production departments
(ordinarily would be detailed as repairs, photocopying, utilities, etc.)..... 540
Manufacturing overhead allocated at 150% of direct manufacturing labor costs. ?
Cost of goods manufactured..................... 4,100
Revenues ............................. 8,200
Cost of goods sold (before adjustment for under- or overallocated manufacturing
overhead) Inventories, December 31, 2011 (not 2012):......... 4,030
Materials Control......................... 150
Work- in- Process Control ..................... 80
Finished Goods Control...................... 540

Required
1. Prepare an overview diagram of the job- costing system at the University of Chicago Press.
2. Prepare T- accounts to record the 2012 transactions for inventories, revenues, and costs. As your final entry, dispose of the year- end under- or overallocated manufacturing overhead as a writeoff to Cost of Goods Sold. Number your entries.
3. How did the University of Chicago Press perform in 2012?



$1.99
Sales6
Views526
Comments0
  • CreatedJanuary 15, 2015
  • Files Included
Post your question
5000