Part I- Exercise cost for orders

The accounting records indicate certain balances in the inventory accounts for 20xx:

	1/1/xx	31/12/xx
Materials inventory	$ 21,000	$ 16,000
Inventory of products in process (Work in Process)	-0-	$23,000
Finished Goods Inventory	$13,000	$27,000

Other data (applies to the period from 1/1/xx to 12/31/xx)

 Prime costs were $363,000.

 Materials were purchased 10 times the amount of what was in materials inventory at the beginning of the year.

 Direct Labor costs represent 40% of conversion costs which were $370,000.

 The company generates, on average, a 35% gross profit (Gross Margin).

Required:

 1. Calculate the following items for 20xx:

a. Cost of materials used (Direct Materials Used)

b. Direct Labor Cost

c. Indirect factory costs incurred (Manufacturing Overhead)

d. Cost of Goods Manufactured

and. Unit cost (2,000 units are produced)

F. period sales

g. cost of goods sold

 Part II- Cost of proceedings

 Alcanza Corp. adds the materials at the beginning of its production process and the conversion costs are added uniformly. At the beginning of June 20xx, the inventory in process was 25% complete; at the end of the month it had 60% completion. Other important data is disclosed below:

Beginning inventory of goods in process	1,400 unidades
Units started during the period	3,600 unidades
Units completed during the period	3,800 unidades
conversion costs	$530,000
Direct materials used	$295,000
Initial inventory costs
Materials	$125,000
Conversion	$ 190,000

Required: 1. Prepare the cost report for the month of June 20xx.

 Part III  Question

1. Compare and contrast accounting according to both methods (establish two similarities and two differences).

2. Establish in which of the cost systems it is more practical to do a cost-benefit analysis and in which a cost per volume analysis applies (use the textbook and the presentation of module 2 as a basis for answering).