New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
management accounting information
Principles Of Accounting Volume 2 Chapters 12-25 1st Edition Robert Libby, Patricia Libby, Fred Phillips, Stacey Whitecotton - Solutions
7. How is the number of physical units reconciled in a production report?
6. What is the difference between conversion cost and manufacturing overhead? Why would a company use a conversion cost account instead of a manufacturing overhead account?
5. Why is a production report important to a company?
4. What are the four steps to prepare a production report?
3. Explain the flow of costs in a manufacturing company including the type of account and the respective financial statement on which the cost appears.
2. Explain the differences between Raw Materials, Work in Process and Finished Goods inventories.
1. Briefly describe the differences between job order, process, and activity based costing. Give an example of a type of company that would use each one.
CP19-3 Comprehensive Job Order Costing Case Sampson Company uses a job order cost system with overhead applied to products based on direct labor hours. Based on previous history, the company estimated its total overhead for the coming year (2009) to be $240,000 and its total direct labor hours to
CP19-2 Applying Job Order Costing to an Entrepreneurial Business Assume you are going to become an entrepreneur and start your own business. Think about your talents and interests and come up with an idea for a small business venture that provides a unique product or service to local customers. You
CP19-1 Multiple Allocation Bases and Ethical Dilemmas Assume you recently accepted a job with a company that designs and builds helicopters for commercial and military use. The company has numerous contracts with the U.S. military that require the use of cost-plus pricing. In other words, the
PB19-5 Recording Manufacturing Costs, Preparing a Cost of Goods Manufactured, and Sold Report, and Calculating from Operations Income Carlton Manufacturing Company uses a job order costing system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning
PB19-4 Selecting Allocation Base and Analyzing Manufacturing Overhead Timberland Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. In the past, the company has always used direct labor hours to assign manufacturing overhead to products, but it is
PB19-3 Finding Unknowns in the Cost of Goods Manufacturing and Sold Report, and Analyzing Manufacturing Overhead The following information was obtained from the records of Carrington Corporation during 2009. 1. Manufacturing overhead was applied at a rate of 150 percent of direct labor dollars. 2.
PB19-2 Recording Manufacturing Costs and Analyzing Manufacturing Overhead Carrington Custom Cabinet Company uses a job order costing system with overhead applied based on direct labor cost. Inventory balances at the beginning of 2009 follow. Raw materials inventory $25,000 Work in process inventory
upcoming year, Babson estimated its total manufacturing overhead cost at $360,000 and its total machine hours at 125,000. During the first month of operation, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job.
PB19-1 Calculating Predetermined Overhead Rates, Recording Manufacturing and Cost Flows, and Analyzing Overhead Babson Company uses a job order costing system with overhead applied to products on the basis of machine hours. For the
PA19-5 Recording Manufacturing Costs, Preparing a Cost of Goods Manufactured and Sold Report, and Calculating Income from Operations Dobson Manufacturing Company uses a job order costing system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of
PA19-4 Selecting Allocation Base and Analyzing Manufacturing Overhead Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. In the past, the company has always used direct labor hours to assign manufacturing overhead to products, but it is
PA19-3 Finding Unknowns in the Cost of Goods Manufacturing and Sold Report and Analyzing Manufacturing Overhead The following information was obtained from the records of Appleton Corporation during 2009. 1. Manufacturing Overhead was applied at a rate of 80 percent of direct labor dollars. 2.
PA19-2 Recording Manufacturing Costs and Analyzing Manufacturing Overhead Christopher’s Custom Cabinet Company uses a job order costing system with overhead applied as a percentage of direct labor costs. Inventory balances at the beginning of 2009 follow: Raw materials inventory $15,000 Work in
PA19-1 Calculating Predetermined Overhead Rates, Recording Manufacturing Cost Flows, and Analyzing Overhead Tyler Tooling Company uses a job order costing system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing
E19-10 Recording Manufacturing and Nonmanufacturing Costs Reyes Manufacturing Company uses a job order costing system. At the beginning of January, the company had one job in process (Job 201) and one job that was completed but not yet sold (Job 200). Other select account balances follow (ignore
E19-9 Recording Actual and Applied Manufacturing Overhead Costs, and Calculating Overor Underapplied Overhead Costs Verizox Company uses a job order costing system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company
E19-8 Preparing Entries for Manufacturing Costs Roy’s Appliance Repair Shop uses a job order costing system to keep track of the cost of each repair. Roy applies its “garage or shop” overhead at a rate of $25 per direct labor hour spent on each repair. Roy’s uses the following accounts to
E19-7 Recording Manufacturing Costs The flow of costs through a company’s cost accounting system is summarized in the following T-accounts.Required: Describe the transactions represented by letters a – i. When more than one debit appears in a single transaction, explain why the costs are
E19-6 Calculating and Recording the Total Cost to Complete a Job and Sales Revenue Aquazona Pool Company is a custom pool builder. It recently completed a pool for the Drayna family (Job 1324), as summarized on the following incomplete job cost sheet.The company applies overhead to jobs at a rate
E19-5 Calculating Overhead Rates, Recording Actual and Applied Manufacturing Overhead, and Analyzing Over- or Underapplied Manufacturing Overhead Cayman Custom Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its
E19-4 Finding Unknown Values in the Cost of Goods Manufactured and Sold Report Mulligan Manufacturing Company uses a job order cost system with overhead applied to products at a rate of 200 percent of direct labor cost. Selected manufacturing data follow. Case 1 Case 2 Case 3* Direct material used
E19-3 Analyzing Labor Time Tickets and Recording Labor Costs A weekly time ticket for Jim Bolton follows.Required: 1. Determine how much of the $1,000 that Jim earned during this week would be charged to Job 271, Job 272, and Job 273. 2. Explain how would the time spent doing maintenance work would
E19-2 Recording Direct Materials, Direct Labor, and Applied Overhead Stone Creek Furniture Factory (SCFF), a custom furniture manufacturer, uses job order costing to keep track of the cost of each customer order. On March 1, SCFF had two jobs in process with the following costs: Work in Process
E19-1 Recording Materials Based on Materials Requisitions A recent materials requisition form for Christopher Creek Furniture Manufacturers follows. Requisition Number Job Number Item Description Total Cost MR 234 25 ¼" maple planks $400 MR 235 26 ¼" cherry planks 500 MR 236 27 ½" birch planks
M19-11 Calculating Over- or Underapplied Overhead Costs Refer to M19-10 for Kelly Company. Its actual manufacturing costs for the most recent period are summarized here: Item Description Total Cost Direct material Used on Jobs 101 and 102 $90,000 Indirect material Used on multiple jobs 15,000
M19-10 Recording Applied Manufacturing Overhead Costs Refer to M19-9 for Kelly Company. The company applies manufacturing overhead to products at a predetermined rate of $50 per direct labor hour. Prepare the journal entry to apply manufacturing overhead to production.
M19-9 Recording Direct and Indirect Labor Costs Kelly Company’s payroll costs for the most recent month are summarized here: Item Description Total Cost Hourly labor wages 750 hours @ $25 per hour 200 hours for Job 101 = $5,000 300 hours for Job 102 = 7,500 250 hours for Job 103 = 6,250 $18,750
M19-8 Recording the Purchase and Issue of Raw Materials Kelly Company’s raw materials inventory transactions for the most recent month are summarized here. Beginning raw materials $ 10,000 Purchases of raw materials 100,000 Raw materials issued Material Requisition #1445 50,000 For Job 101
M19-7 Calculating Over- or Underapplied Manufacturing Overhead Refer to M19-5 for Willard Company. 1. Compute over- or underapplied overhead. 2. Explain how you would handle the over- or underapplied overhead at the end of the accounting period. Which accounts will be affected? Will the accounts be
M19-6 Calculating Applied Manufacturing Overhead Refer to M19-5 for Willard Company. 1. Determine how much overhead to apply to production . 2. Explain whether applied overhead was based on actual values, estimated values, or both.
M19-5 Calculating Predetermined Overhead Rates Willard Company applies manufacturing overhead costs to products as a percentage of direct labor dollars. Estimated and actual values of manufacturing overhead and direct labor costs are summarized here: Estimated Actual Direct labor cost $400,000
M19-4 Calculating Direct Material Used in Production The following information is available for Carefree Industries. Direct labor $100,000 Total current manufacturing costs 370,000 Manufacturing overhead is applied to production at 150 percent of direct labor cost. Determine how much direct
M19-3 Calculating Cost of Goods Sold The following information is available for Carefree Industries. Cost of goods manufactured $300,000 Beginning finished goods inventory 140,000 Ending finished goods inventory 120,000
M19-2 Calculating Total Current Manufacturing Cost The following information is available for Carefree Industries. Beginning work in process inventory $ 75,000 Ending work in process inventory 90,000 Cost of goods manufactured 300,000 Compute total current manufacturing costs.
M19-1 Identifying Companies that Use Job Order versus Process Costing Indicate whether each of the following companies is likely to use job order (j) or process costing (p). ____ 1. Golf ball manufacturer. ____ 2. Landscaping business. ____ 3. Tile manufacturer. ____ 4. Auto repair shop. ____ 5.
10. Before disposing of its year-end manufacturing overhead balance, Delphi Corporation had the following amounts in Manufacturing Overhead and Cost of Goods Sold. Applied manufacturing overhead $100,000 Actual manufacturing overhead 90,000 Unadjusted cost of goods sold 800,000 If Delphi closes the
9. Carlton Construction Company sold a home that it built for a total cost of $150,000 for a sales price of $250,000. The journal entries to record the sales revenue and cost of the sale would include:a. A debit to Cost of Goods Sold for $150,000.b. A credit to Finished Goods for $150,000.c. A
8. The journal entry to record applied manufacturing overhead costs would:a. Include a debit to Work in Process Inventory.b. Include a debit to Manufacturing Overhead.c. Include a credit to Manufacturing Overhead.d. Include both A and C.e. Not be recorded.
7. The journal entry to record actual overhead costs incurred would:a. Include a debit to Work in Process Inventory.b. Include a debit to Manufacturing Overhead.c. Include a credit to Manufacturing Overhead.d. Include both A and C.e. Not be recorded.
6. When raw materials are purchased on account, the journal entry would:a. Include a Debit to Work in Process Inventory.b. Include a Debit to Raw Materials Inventory.c. Include a Credit to Accounts Payable.d. Both A and C.e. Both B and C.
5. Refer to the information in question 4 above. How much is over- or underapplied overhead?a. $10,250 overapplied.d. $ 5,250 underapplied.b. $10,250 underapplied.e. None of the above.c. $ 5,250 overapplied.
4. Comstock Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. Estimated and actual total manufacturing overhead costs and machine hours follow. Estimated Actual Total overhead cost $100,000 $110,250 Machine hours 20,000 21,000 What is the
3. Which of the following source documents serves as a subsidiary ledger for the Work in Process Inventory account?a. Production order form.b. Materials requisition form.c. Direct labor time ticket.d. Predetermined overhead rate.e. Job order cost sheet.
2. The source document used to specify the quantity and unit costs of raw materials issued into production is called a:a. Production order form.b. Materials requisition form.c. Direct labor time ticket.d. Predetermined overhead rate.e. Job order cost sheet.
1. Why would a company choose to use process costing rather than job order costing to compute product cost?a. The company produces units to customer specifications.b. The company manufactures a product using a series of continuous processes that results in units that are virtually identical from
20. Explain the most common method of eliminating any balance in the Manufacturing Overhead account at yearend. What account(s) is (are) adjusted? What happens to the account(s) when manufacturing overhead is overapplied? Underapplied?
19. How do you know when manufacturing overhead is underapplied? What type of balance would you expect to see in the Manufacturing Overhead account?
18. How do you know when manufacturing overhead is overapplied? What type of balance would you expect to see in the Manufacturing Overhead account?
17. Will the amount of manufacturing overhead that is applied to Work in Process Inventory be equal to the actual amount of manufacturing overhead costs incurred? Why or why not?
16. How do you apply manufacturing overhead to the Work in Process Inventory account? Is it based on estimated or actual data?
15. How is a predetermined overhead rate calculated? How does a company decide on an allocation base to use to calculate the rate?
14. Explain how and why depreciation on office equipment is treated differently than depreciation on manufacturing equipment.
13. Why is manufacturing overhead assigned to Work in Process Inventory in a different manner than direct materials and direct labor? Explain how it is different.
12. Some would argue that costs would be more accurate if overhead costs were assigned to jobs using an overhead rate based on actual direct labor and actual value of the allocation base. Do you agree or disagree with this view? Explain.
11. What is the primary source document used to trace the cost of direct labor to specific jobs? What information should it contain?
10. Explain why the cost of direct materials is debited to Work in Process Inventory while the cost of indirect materials is debited to Manufacturing Overhead.
9. What is the purpose of a materials requisition form? What information should it contain?
8. The job order cost sheet serves as a subsidiary ledger to the Work in Process Inventory account. Explain what this means and how you would verify this.
7. What is the purpose of a job order cost sheet? What information should it contain?
6. Describe the three major types of manufacturing costs that are accounted for in a job order cost system. Give an example of each type of cost for an auto repair shop that uses job order costing.
5. Many companies use a modified costing system that blends certain elements of process costing and job order costing. Can you think of a company that makes products that have certain similarities from unit to unit (similar to process costing) but also allows a certain degree of customization
4. Many service industries use job order costing to keep track of the cost of serving clients. Can you think of a service industry that provides fairly homogeneous services? Describe the industry and explain why it might use process costing rather than job order costing.
3. What types of companies are likely to use process costing? Give three examples.
2. What types of companies are likely to use job order costing? Give three examples.
1. What is the difference between job order and process costing?
CP18-4 Identifing Service, Merchandising, and Manufacturing Firms: Internet Research As discussed in the chapter, companies can be classified into one of three categories: service, merchandising, and manufacturing. Required: 1. Choose one publicly traded company from each category and explore that
CP18-3 Finding Future-Oriented Information in Financial Statements Consider the following statement about the use of forward-looking information on Kraft’s Web site.Required: 1. What was the safe harbor provision of the Private Securities Litigation Reform Act of 1995? What was its intended
CP18-2 Identifying Changes in Manufacturing Process and Costs Due to Automation In recent years, many companies have converted from a labor-intensive manufacturing process to an automated one. As an example, think of a car wash company that used to wash cars by hand but has now invested in an
CP18-1 Researching Cost Components of Everyday Item Choose one item that you use each day—anything from a toothbrush to your favorite soda to an automobile. Required: Research online the company that produces this item to find out as much information as you can about the manufacturing process
PB18-5 Identifying Costs, Classifying Types of Companies, and Preparing Financial Statements Following are the Assets sections of comparative balance sheets for Ratliff Industries the 2008 and 2009. Ratliff Industries Comparative Balance Sheet 12/31/2008 12/31/2009 Assets Cash $ 69,600 $ 57,290
PB18-4 Identifying Types of Companies Classifying Costs, and Preparing Financial Statements Following are the Assets sections of comparative balance sheets for Wynflow Company for 2008 and 2009.2008 2009 Assets Cash $ 90,300 $ 87,200 Accounts receivable 37,300 25,800 Direct materials inventory
PB18-3 Classifying Costs, Calculating Total Costs, and Identifying Impact of Classifications Assume that Maria Cottonwood (PB18-2) has decided to begin production of her fire extinguisher. Her company is Blaze Be Gone whose costs for last month follow. Factory rent $2,000 Company advertising 500
PB18-2 Identifying Management Functions Your friend, Maria Cottonwood, has designed a new type of fire extinguisher that is very small and easy to use. It will be targeted for two groups of people: elderly or people with disabilities who often have trouble operating the heavy traditional
PB18-1 Comparing Product and Period Costs You have been asked to take part in an upcoming Young Professionals meeting in your area. The program planned for the evening focuses on today’s manufacturing environment. Specifically, you have been asked to explain how manufacturing firms determine how
PA18-5 Identifying Types of Companies, and Preparing Financial Statements Following are the Assets section of comparative balance sheets for Bettie Company for 2008 and 2009. 12/31/2008 12/31/2009 Assets Cash $ 30,300 $ 37,800 Accounts receivable 17,900 15,600 Direct materials inventory 12,900
PA18-4 Identifying Types of Companies and Preparing Financial Statements Following are the Assets section of comparative balance sheets for Dixie Industries for 2008 and 2009. Dixie Industries Comparative Balance Sheet 12/31/2008 12/31/2009 Assets Cash $130,400 $ 97,800 Accounts receivable 35,600
PA18-3 Classifying Costs; Calculating Total Costs; Identifying Impact of Misclassification Assume that Suzie Whitson (PA18-2) has decided to begin production of her outdoor children’s game. Her company is Jiffy Jet where costs for last month follow Factory rent $3,000 Company advertising 1,000
PA18-2 Identifying Management Functions Your friend, Suzie Whitson, has designed a new type of outdoor children’s toy that helps youngsters learn basic concepts such as colors, numbers, and shapes. Suzie’s product will be targeted for two groups: day care centers in warm climates and home
PA18-1 Comparing Financial and Managerial Accounting You have been asked to take part in an upcoming Young Professionals meeting in your area. The program planned for the evening will cover many aspects of today’s business world. Specifically, you have been asked to explain why there are two
E18-11 Calculating Cost of Goods Manufactured and Sold and Preparing an Income Statement StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March. Beginning Inventory Ending Inventory Raw materials $30,000 $25,000 Work in
E18-10 Preparing an Income Statement Refer to the information in E18-9 for Wonderway. Required: Prepare the company’s income statement assuming sales revenue for the year was $500,000.
E18-9 Classifying Costs and Calculating Cost of Goods Manufactured and Sold The following information is available for Wonderway, Inc., for 2010. Factory rent $28,000 Company advertising 19,000 Wages paid to laborers 83,500 Depreciation for president’s vehicle 8,000 Indirect production labor
E18-8 Calculating Missing Amounts and Cost of Goods Manufactured and Sold Required: For each of the following independent cases (A–D), compute the missing values in the table below.Case A Case B Case C Case D Beginning raw materials inventory $ 5,000 ? $ 20,000 $110,000 Raw material purchases
E18-7 Calculating Missing Amounts Required: For each of the following independent cases (A–E), compute the missing values in the table below. Case Prime Cost Conversion Cost Direct Materials Direct Labor Manufacturing Overhead Total Manufacturing Cost A $ ? $ ? $2,000 $1,000 $3,500 $ ? B 6,800
E18-6 Preparing an Income Statement Refer to the information in E18-5 regarding Cotton White, Inc. Required: Prepare the company’s income statement for 2009 assuming that all inventory accounts (Raw Materials, Work in Process, and Finished Goods) had a zero balance at both the beginning and end
E18-5 Calculating Costs Cotton White, Inc. makes specialty clothing for chefs. The company reported the following costs for 2009:Factory rent $36,000 Company advertising 24,000 Wages paid to seamstresses 75,000 Depreciation on salespersons’ vehicles 30,000 Thread 1,000 Utilities for factory
E18-4 Classifying Costs Seth’s Skateboard Company has provided the following information about its company. Required: For each of the following costs, use an X to indicate the category of product cost and whether it is a prime cost, conversion cost, both or neither. PRODUCT COSTS Direct Materials
E18-3 Classifying Costs Suppose you have just finished your third year of college and expect to graduate with a bachelor’s degree in accounting after completing two more semesters of coursework. The salary for entry-level positions with an accounting degree is approximately $48,000 in your area.
E18-2 Identifying Management Functions Refer to E18-1. Suppose that after a thorough investigation, Books on Wheels decided to go forward with the new product aimed at university students. The product, The Campus Cart, has gone into production and the first units have already been delivered to
E18-1 Making Decisions Using Managerial Accounting Suppose you are a sales manager for Books on Wheels, Inc., which makes rolling book carts often used by libraries. The company is considering adding a new product aimed at university students. The new product will be a small, collapsible, wheeled
M18-10 Calculating Missing Amounts and Cost of Goods Sold For each of the following independent cases A–D, compute the missing values in the table below. Case Cost of Goods Manufactured Beginning Finished Goods Inventory Ending Finished Goods Inventory Cost of Goods Sold A $ 3,100 $ 400 $ 100 $ ?
M18-9 Calculating Missing Amounts and Cost of Goods Manufactured For each of the following independent cases A–D, compute the missing values in the table below. Case Total Current Manufacturing Costs Beginning Work in Process Inventory Ending Work in Process Inventory Cost of Goods Manufactured A
M18-8 Classifying Type of Company Indicate whether each of the following businesses would most likely be classified as a service company (S), merchandising company (Mer), or manufacturing company (Man). ____ 1. Merry Maids. ____ 2. Dell Computer. ____ 3. Brinks Security. ____ 4. Kmart. ____ 5.
Showing 300 - 400
of 4138
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last
Step by Step Answers
Get 50% OFF
Claim Now
