Managerial Accounting Creating Value In A Dynamic Business Environment 10th Global Edition Ronald W. Hilton, David E. Platt, Platt Hilton, Mcgraw-Hill - Solutions

4.24 The November production of MVP's Minnesota Division consisted of batch P25 (2.000 professional basketballs and batch 533 (4,000 scholastic basketballs) Each batch was started and nished during November, and there was no beginning or ending work in process Costs incurred were as follows Direct
4.23 Raleigh Textiles Company manufactures a variety of natural fabrics for the clothing industry The fol- lowing data pertain to the Weaving Department for the month of November Equivalent units of direct material (weighted-a-xage method) Equivalent unius of conversion (weighted-average method
4.22 The following date pertain to Tuscaloosa Paperboard Company a manufacturer of cardboard boxes Work in process Maich 1 Dieci material Conversion Costs incurred duning March Direct material Conversion Complete as in dire materal, 35% complete as io com-ursion 12 000 units* $ 22.800 33 650
4.21 Montana Lumber Company grows, harvests, and processes timber for use in construction The following data pertain to the firm's sawmill during June Work in process, June 1 Deci material Canvasion Costs incurred dunng June Det material Conversion $ 74,900 167,000 $380 700 625,000 The equivalent
4.20 Duluth Glass Company manufactures window glass for automobiles The following data pertain to the Plate Glass Department Work in process. Fabiuary 1 Direct metal Conversion Costs incured during February Duct mater Conversion $ 55 600 49,500 $155.000 220,000 The equivalent units of activity for
4.19 Lise the Internet to access the website for Weverhaeuser (www.weyerhaeuser com), International Paper (www.internationalpaper com) or Boise Cascade (www boisecascade com) Required: Skim over the information presented on the website about the company's products and operations Then discuss why
4.18 Andromeda Glass Company manufactures decorative glass products The firm employs a process- cesting system for its manufacturing operations All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process The company's production
4.17 PetroTech Company refines a variety of petrochemical products The following data are from the firm's Amarillo plant Work in process July 1 Direct material Conversion Units started in process during July Work in process, July 31 Direct material Conversion Required: 2,100 000 liters 100%
4.16 The Milwaukee plant of Healthy Life Styles, Inc produces low-fat salad dressing The following data pertain to the year just ended Work in process. January 1 Units 30.000 pal Percentage of Completion Direct Material Conversion 70% 50% Work in process December 31 25,000 gal 75% 20% During the
4.15 In each case below, fill in the missing amount 1. Work in Process June i Units started during June Units completed during lune Work in process, June 30 10,000 pounds 16,000 pounds 3.000 pounds 2. Work in process. April 1 Units started during April Units completed during Ppt Work in process,
4-14. What is the purpose of a departmental production report prepared using process costing?
4-13. Explain the concept of operation costing How does it dif- fer from process or job-order costing? Why is operation costing well suited for batch manufacturing processes?
4-12. How would the process-costing computations differ from those illustrated in the chapter if overhead were applied on some activity base other than direct labor?
4-11. How does process costing differ under normal or actual costing'
4-10. Explain the reasoning underlying the name of the weighted-average method
4-9. A food processing company has two sequential produc- tion departments mixing and cooling The cost of the January 1 work in process in the cooking department is detailed as follows Direct material Conversion Transferred-in costs $ 79,000 30.000 182,000 During what time period and in what
4-8. What are transferred-in costs?
4-7. Show how to prepare a journal entry to enter direct- material costs into the Work-in-Process Inventory account for the first department in a sequential produc- tion process Show how to prepare the journal entry recording the transfer of goods from the first to the sec- ond department in the
4-6 List and briefly describe the purpose of each of the four process-costing steps
4-5 Define the term equivaleni unit and explain how the concept is used in process costing
4-4 What are the purposes of a product-costing system?
4-3. List three nonmanufacturing businesses, in which process costing could be used For example a public accounting fum could use process costing to accumuuu- late the costs of processing clients' tax returns
4-2. List five types of manufacturing in which process cost- ing would be an appropriate product-costing system What is the key characteristic of these products that makes process costing a good choice?
4-1. Explain the primary differences between job-order and process costing
3.62 Opacom, Inc a manufacturer of fiber optic communications equipment, uses a job-order costing sys- tem Since the production process is heavily automated manufacturing overhead is applied on the basis of machine hours using a predetermined overhead rate The current annual rate of $30 per machine
3.61 Lilliana Richmond started KidCo, Inc in Albuquerque, New Mexico to produce affordable children's furnishings The company uses a job-order costing system KidCo's work-in-process inventory at the end of November consisted of the following jobs Job No. CBS102 PLP086 DRS114 Total Description Cribs
3.60 Color Tech Corporation manufactures two different color punters for the business market Cost estimates for the two models for the curent year are as follows (bottom of next page)Direct material Direct labor (20 hours at $16 per hour) Manufacturing overhead Totar To predere med overhead rate is
3.59 Refer to the preceding problem regarding Bandway Company Complete the job-cost record for Job number T79, which appears at the top of the next page (Assume that all of the labor hours for job 179 occurred during the week of 10/8 through 10/12)
3.58 Bandway Company manufactures brass musical instruments for use by high school students The com- pany uses a normal-costing system, in which manufacturing overhead is applied on the basis of duect- Labor hours The company's budget for the current year included the following prediction: Budgeted
3.57 Conundrum, Inc manufactnes puzzles Due to a fue in the administrative offices, the accounting records for September of the cur ert year were partially destroyed You have been able to piece together the following information from the ledgerUpon examining various source documents and
3. 56 Rochester Heating Systems Inc calculates its predetermined overhead rate on a quarterly basis The following estimates were made for the current year Quarterly Prodctermined Overhead Rate First quarter Second quarter Third quarter Fourth quarter Total Estimated Manufacturing Overhead Estimated
3.55 Tiana Shat, the controller for Caesar Glassware Company, is in the process of analyzing the overhead costs for the month of November She has gathered the following data for the monthThe firm's job-order costing system uses direct-labor hours (measured at practical capacity) as the cost diver
3.54 Biloxi Billiards Company uses normal costing and manufacturing overhead is applied to work in process on the basis of machine hours On January 1 of the current year there were no balances in work-in-process or finished-goods inventories. The following estimates were included in the current
3.53 Marvelous Marshmallow Company's cost of goods sold for January was $720,000 January 31 work- in-process inventory was 90 percent of January 1 work-in-precess inventory Manufacturing overhead applied was 50 percent of duect-labor cost Other information pertaining to the company's inventories
3.52 Joey Dulwich has recently been hued as a cost management specialist by Offset Press Company, a pavately held company that produces a line of offset printing presses and lithograph machines During his fust few months on the job Dulwich discovered that Offsei has been underapplying factory
3.51 Seaway Inc manufactures outboard motors and an assortment of other marine equipment The company uses a job-order costing system Normal costing is used, and manufacturing overhead is applied on the basis of machine hours Estimated manufacturing overhead for the year is $1,520 200, and
3.50 Refer to the schedule of cost of goods manufactured prepared for Superior Metals Corporation in the preceding problem Required: 1. How much of the manufacturing costs incurred during 2014 remained associated with work-in-process inventory on December 31, 20x47 2. Suppose the company had
3.49 Purchases of raw material in 20x4 548,250 Raw-material inventory, 12/31/x4 44 250 Direct-labor cost incurred 356,500 Selling and admirsiste expenses 201.750 Indirect labor cost incurred 112 500 The following data refer to Superior Metals Corporation for the year 2014 Raw matanal inventory.
3.48 Golden State Enterprises provides consulting services throughout California and uses a job-order cost- ing system to accumulate the cost of chent projects Taccable costs are charged duectly to individ- ual clients, in contrast, other costs incuned by Golden State, bui not identifiable with
3.47 Juarez, Inc uses a jot-order costing system for its products, which pass from the Machining Depart- ment, to the Assembly Department, to finished-goods inventory The Machining Department is heavily automated, in contrast, the Assembly Department performs a number of manual-assembly activities
3.46 Southwestern Fashicns, Inc which uses a job-order cosang system, had two jobs in process at the start of the year job no 101 ($182,000) and job no 102 ($116.000) The following information is availablea. The company applies manufacturing overhead on the basis of machine hours (based on
3.45 Dessert Delite Company produces frozen microwavable desserts The following accounts appeared in the ledger as of December 31Additional informationa. Accounts payable is used only for direct-material purchasesb. Under applied overhead of $3,500 for the year has not yet been closed into cost of
3.44 The following data refer to Mister Munchie, Inc for the year 2014 Work-in-process inventory. 12/31/x3 Selling and administrative salaries Insurance in factory and equipmeni $26,200 42,700 12.300 Utilites fre sales and administrative offices Other selling and administrative expenses
3.43 Bumungham Bowling Ball Company (BBBC) uses a job-order costing system to accumulate manufactur- mg costs The company s work-in-process on December 31, 2013, consisted of one job (no 3088), which was carried on the year-end balance sheet at $78.400 There was no fimshed-goods inventory on this
3.42 Vermont Clock Works manufactures fime handcrafted clocks The fum uses a job-order costing sys- tem and manufacturing overhead is applied on the basis of direct-labor hours Estimated manufacturing overhead for the year is $675,000 The firra employe 15 master clockmakers, who constituie the
3.41 Refer to the illustration of overhead application in the Midtown Advertising Agency on pp 104-105 Suppose the firm used a single cost driver, total staff compensation, to apply overhead costs to each ad contract Required. 1. Compute the total budgeted staff compensation both partner and arusac
3.40 Refer to Exhibit 3-12, which portrays the three types of allocation procedures used in two-stage allo- cation Give an example of each of these allocation procedures in a hospital setting The ultimate cost object is a patient-day of hospital care This is one day of care for one patient (Hint
3.39 Suppose you are the controller for a company that produces handmade glassware 1. Choose a volume-based cosi daver upon which to base the application of overhead Write a memo to the company president explaining your choice 2. Now you have changed jobs You are the controller of a microchip
3.38 Rocky Mountain Leather works, which manufactures saddles and other leather goods, has thice depait- ments The Assembly Department manufactures various leather products, such as belts, purses, and sad- dlebags, using an automated production process The Saddle Department produces handmade
3.37 Contemporary Thends is an interior decorating firm in Munich The following costs were incurred in the firm's contract to redecorate the mayor's offices Dieci material used Duect professional labor The fum's budget for the year included the following estimates Burgeted overhead Budgeted direct
3.36 Happy Days Balloon Company incurred $167,000 of manufacturing overhead costs during the year just ended However, only $145,000 of overhead was applied to produccion At the conclusion of the year the following amounts of the year's applied overhead remained in the various manufacturing accounts
3.35 The following information pertains to Paramus Metal Works for the year just ended Budgeted direct-labor cost 80.000 hours (practical capacity) at $18 per hour Actual direct-labni cnst 83,000 hours at $20 per hour Budgeted manufacturing overhead $1,040,000 Budgeted selling and adininistrative
3.34 Refer to the data for the preceding exercise for Aquarius Hotel Supply Company Prepare a journal entry to add to work-in-process inventory the total manufacturing overhead cost for the year. assuming 1. The fum uses actual costing 2. The fum uses normal costing, with a predetermined overhead
3.33 The following data pertain to the Aquarrus Hotel Supply Company for the year just ended Budgeted sales revenue Budgeted manufacturing overheari Budgeted machine hours (based on practical capacity) Burgsted direct-labor hours (based on practical capacity) Budgeted dest-labor rate per hour
3.32 Crunchem Cereal Company incunted the following actual costs during 2014 $412 600 180 000 378,000 Direct materal used Direct labor Manufacturing overhead The fum piedetermined overhead rate is 210 percent of direct-labor cost The January 1 inventory balances were as follows Raw material Work in
3.31 Selected data concerning the past year's operations of the Lone Stu Leather Company are as follows. Raw material Work in process Finished goods Other data Direct material used Total manufacturing costs charged to production during the year includes direct material da sci labor and
3.30 Jay Sports Equipment Company, Inc incunted the following costs during 20x2 Diect material used Drect labor Manufacturing overhead applied $248 500 435 400 252000 During 2012 products costing $172.000 were finished and products costing $193.500 were sold on account for $267,500 There were no
3.29 Visit the website of a film producer, such as Disney, MGM or Waines Brothers Walt Disney Studios MGM Warner Brothers www.disney.com www.mgm.com www.warnerbros.com Required Read about one of the company recent (or upcoming) film releases Then discuss why or why not job-order costing would be an
3.28 The controller for Tender Bid Poultry Inc estimates that the company's fixed overhead is $150.000 per year She also has determined that the variable overhead is approximately $15 per chucken raised and sold Since the firm has a single product, overhead is applied on the basis of output units
3.27 Dewitt Educational Products started and finished job numbra RM67 during June The job required $5,100 of duect material and 40 hcus of duect labor at $18 per hour The predetermined overhead rate is $6 per direct-labor hour Required: Prepare journal entries to record the incurrence of production
3.26 Cherry Hill Glass Company employs a normal-costing system The following information pertains to the year just ended . Total manufacturing costs were $1,250,000 Cost of goods manufactured was $1,212 500 Applied manufacturing overhead was 30 percent of total manufacturing costs . Manufacturing
3.25 Shawn Toy Company incuried the following costs to produce job number IB78 which consisted of 1000 teddy bears that can walk, talk, and play cards Direct material 6/11/70 Requisition number 201 500 yards of fabric at $ 90 per yard 8/12/0 Requisition numba, 208 600 cubic feet of stuffing at $40
3.24 Rexford Company manufactures finger splints for kids who get tendonitis from playing video games The firm had the following inventories at the beginning and end of the month of January Finished goods Work in process Raw material January 1 $184,900 January 31 $160 400 321,700 342,500 185 500
3.23 For each of the following companies, indicate whether job-order or process costing is more appropriate 1. Manufacturer of household cleaning solutions 2 Manufacturer of custom hot tubs and spas 3. Architectural firm 4. Manufacturer of ceramic tile 5. Producer of yogurt 6. Manufacturer of
3-22. Explain how a Texas Instruments engineer might use hai code technology to receid the time she spends on various activities
3-21. Describe how a large retailer such as Losses could use EDI
3-20. Briefly describe two ways of closing out over applied or under applied overhead at the end of an accounting period
3-19. What is the cause of over applied or underapplied overhead
3-18. Why are some manufacturing firms switching from direct-labor hours to machine hours or throughput time as the basis for overhead application?
3-17. Gre an example of how a hospital, such as the Mayo China, might use job-order costing concepts
3-16. Describe the flow of costs through a product-costing system. What special accounts are involved, and how are they used?
3-15. What is meant by the term cost driver? What is a volume-based cost driver?
3-13. Define each of the following terms, and explain the relationship among them (a) overhead cost distribu- tion, (b) service department cost allocation, and (c) overhead application 3-14. Describe how job-order costing concepts are used in professional service firms, such as law practices and
3-12. Describe the process of two-stage cost allocation in the development of departmental overhead rates
3-11. Describe some costs and benefits of using multiple overhead rates instead of a plantwide overhead rate
3-10. When a single volume-based cost driver (or activity base) is used to apply manufacturing overhead, what is the managerial accountant's primary objective in select- ing the cost driver?
3-9. Explain the difference between actual and normal costing
3-8. Descube an important cost-benefit issue involving accuracy versus timeliness in accounting for overhead
3-7. Describe one advantage and one disadvantage of protat- ing overappled or underapplied overhead
3-6. Explain the benefits of using a predetermined overhead rate instead of an actual overhead rate
3-5. Why is manufacturing overhead applied to prod- ucts when product costs are used in making pricing decisions'
3-4. What are the purposes of the tollowing documents (a) material requisition form, (b) labor time record, and (c) job-cost record
3-3. How is the concept of product costing applied in ser- vice industry firms?
3-2. Explain the difference between job-order and process costing
3-1. List and explain four purposes of product costing
2.60 Pinellas Printer Company manufactures printers for use with home computing systems. The fum cur- iently manufactures hoth the electronic components for its printers and the plastic cases in which the devices are enclosed Jim Cassanith. the production inanager, recently received a proposal from
2.59 You just started a summer internship with the successful management consulting fim of Kirk, Spock and McCoy Your fust day on the job was a busy one, as the following problems were presented to you Required. Supply the requested comments in each of the following independent situations 1.
2.58 The controller for Oneida Vineyards. Inc. has predicted the following costs at various levels of wine output vanable production costs Fixed production costs Fized selling and sanitisiative costs Total Wine Output (.75 Liter Boullos) 10,000 Bottles 15,000 Bottles 20,000 Bottles $ 48,000 140 000
2.57 Piedmont Industries cutiently manufactures 40 000 units of part IR63 each month for use in produc- tion of several of its products The facilities now used to produce part IR63 have a fixed monthly cost of $165,000 and a capacity to produce 74,000 units per month If the company were to buy part
2.56 The following terms are used to describe various economic characteristics of costsa. Opportunity costb. Out-of-pocket costc. Sunk costd. Differential coste. Marginal cost L. Average cust Required. Choose one of the terms listed above to characterize each of the amounts described below 1. The
2.55 Mania Chavez makes custom mooning covers for boats in Tumpa Flonda Each mooning cover is hand sewn to fit a particular boat If covers are made for two or more identical boats, each successive cover generally requies less time to make Chavez has been approached by a local boat dealer to make
2.54 Several costs incurred by Cape Cod Hotel and Restaurant are given in the following list For cach cost, indicate which of the following classifications best describe the cost More than one classification may apply to the same cost item Cost Classificationsa. Direct cost of the food and beverage
2.53 Toledo Toy Company incurred the following costs doning 2014 The compony sold all of its products manufactured during the year Direct matenal Direct labor Manufacturing werhead Utilities manly electricity) Depreciation on plant and equipment Insurance Supervisory Salance Property taxes Selling
2.52 The Department of Natural Resources is responsible for maintaining the state's parks and forest lands, stocking the lakes and Ivers with fish, and generally overseeing the protection of the environment Several costs incurred by the agency are listed below For each cost indicate which of the
2.51 Refer to Exhibit 2-3, and answer the following questions Required: 1. List the major differences between the income statements shown for Caterpillar, Walmart, and Southwest Animes 2. Explain how cost-accounting data were used to prepare these income statements 3. On the income statement for
2.50 Nantucket Tee manufactures I-shuts and decorates then with custom designs for retail sale on the premises Several costs incurred by the company are listed below For each cost, indicate which of the following classifications best describe the cost More than one classification may apply to the
2.49 Air Flaire Technology, Inc incurs a variable cost of $16 per kilogram for iaw material to produce a special alloy used in manufacturing ancraft Required: 1. Diaw a graph of the firm's raw material cost, showing the total cost at the following production level 50,000 kilograms, 100.000
2.48 Thermal Technology Inc manufactures a special chemical used to coat certain electrical components that will be exposed to high heat in various applications The company's annual fixed production cost 18 $500 000 Required. 1. Draw a graph of the company's fixed production cost showing the total
2.47 On May 10. after the close of business Fiesuo Furniture Company had a devastating fue that destroyed the company's work-in-process and finished-goods inventories Fortunately all raw materials escaped damage because materials owned by the firm were stored in another warehouse The following
2.46 Scranton Refrigeration Corporation began operations at the beginning of the current year One of the company's products a compressor, sells for $470 per unit Information related to the current year's activities follows Variable costs per unit Direct material Cuect labor Manufacturing overheard

Showing 1000 - 1100 of 1325

Managerial Accounting Creating Value In A Dynamic Business Environment 10th Global Edition Ronald W. Hilton, David E. Platt, Platt Hilton, Mcgraw-Hill - Solutions

Step by Step Answers