General Accounting A patient listing of costs incurred at Jala Enterprise during January appears below.Direct materialsUtilities, factoryRM 107,000RM 11,000Sales commissionsAdministrative salariesIndirect laborAdvertisingDepreciation of production equipmentDirect laborRM 35,000RM 115,000RM 29,000RM 148,000RM 46,000RM 109,000Depreciation of administrative equipment RM 39,000Director's remunerationRequired:RM 140,0001. Compute the total amount of product cost listed above.2. Determine the total amount of period cost listed above.

Step 1: Introduction to cost of a productThe cost of a product refers to the total amount of…

Answered: A patient listing of costs incurred at…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 7BE: In October, the cost of materials transferred into the Rolling Department from the Casting...

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Nova Company’s total overhead cost at various levels of activity are presented below: Month Machine-Hours TotalOverhead Cost April 52,000 $ 203,860 May 42,000 $ 181,060 June 62,000 $ 226,660 July 72,000 $ 249,460 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 42,000 machine-hour level of activity is: Utilities (variable) $ 50,400 Supervisory salaries (fixed) 67,000 Maintenance (mixed) 63,660 Total overhead cost $ 181,060
Nova Company's total overhead cost at various levels of activity are presented below: Month April Machine- Total Hours Overhead Cost 54,000 $ 193,040 44,000 $ 168,940 64,000 74,000 $ 217,140 $ 241,240 May June July Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 44,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 57,200 48,000 63,740 $ 168,940 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $241,240 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $241,240 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) 2. Using the high-low method, estimate a cost formula for maintenance in the form Y = a +…
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In December, Davis Company had the following cost flows: Molding Department Grinding Department Finishing Department Direct materials $111,600 $30,000 $17,200 Direct labor 8,000 13,600 11,600 Applied overhead 8,400 60,400 11,200 Transferred-in cost: From Molding 128,000 From Grinding 232,000 Total cost $128,000 $232,000 $272,000 Required: 1. Prepare the journal entries to transfer costs from (a) Molding to Grinding, (b) Grinding to Finishing, and (c) Finishing to Finished Goods. 2. CONCEPTUAL CONNECTION: Explain how the journal entries differ from a job-order cost system. CHART OF ACCOUNTS Davis Company General Ledger ASSETS 110 Cash 120 Accounts Receivable 130 Raw Materials 142 Work in Process-Grinding 143 Work in Process-Molding 144 Work in Process-Finishing 150 Overhead Control 160 Finished Goods 180 Accumulated Depreciation LIABILITIES 210 Accounts Payable 220 Wages Payable 230 Utilities Payable 240 Lease Payable 250 Other Payables EQUITY 310 Common Stock 320 Retained…
Nova Company’s total overhead cost at various levels of activity are presented below: Month Machine-Hours TotalOverheadCost April 52,000 $ 202,860 May 42,000 $ 179,060 June 62,000 $ 226,660 July 72,000 $ 250,460 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 42,000 machine-hour level of activity is: Utilities (variable) $ 50,400 Supervisory salaries (fixed) 66,000 Maintenance (mixed) 62,660 Total overhead cost $ 179,060 Nova Company’s management wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $250,460 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $250,460 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) 2. Using the high-low…
The following data from the just completed year are taken from the accounting records of KentonCompany: Sales $ 975,000Direct labor cost $ 165,000Raw material purchases $ 229,000Selling expense $ 48,750Administrative expenses $ 146,250Manufacturing overhead applied to work in process $ 180,000Actual manufacturing overhead costs $ 175,050Inventories: Beginning EndingRaw materials $ 18,000 $ 17,500Work in process $ 20,000 $ 14,750Finished goods $ 9,000 $ 11,000 Required: 1.Prepare a schedule of cost of goods manufactured. Assume all raw materials used in productionwere direct materials.2. Prepare a schedule of cost of goods sold. Assume that the company’s underapplied or overappliedoverhead is closed to Cost of Goods Sold 3. Prepare an income statement.
Classifying Costs The following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc. Evaluate and correct this report. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Materials used in production (including $69,300 of indirect materials) $748,300 Direct labor (including $103,900 maintenance salaries) 692,900 Factory overhead: Supervisor salaries 637,500 Heat, light, and power 173,200 Sales salaries 429,600 Promotional expenses 388,000 Insurance and property taxes-plant 187,100 Insurance and property taxes-corporate offices 270,200 Depreciation-plant and equipment 152,400 Depreciation-corporate offices 110,900 Total $3,790,100 Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Factory overhead: Total manufacturing costs incurred
Cost data for Johnstone Manufacturing Company for th month ended March 31 are as follows: Inventories Materials Work in process Finished goods March 1 $199,500 131,670 101,750 Direct labor Materials purchased during March Factory overhead incurred during March: Indirect labor Machinery depreciation Heat, light, and power Supplies Property taxes Miscellaneous costs Direct materials: March 31 Factory overhead: $173,570 114,560 118,030 $359,100 383,040 a. Prepare a cost of goods manufactured statement fo March. Cost of goods manufactured Johnstone Manufacturing Company Statement of Cost of Goods Manufactured For the Month Ended March 31 38,300 23,140 Total factory overhead Total manufacturing costs incurred during March Total manufacturing costs 7,980 6,380 5,590 10,370 00 $ $ b. Determine the cost of goods sold for March.
Archangel Manufacturing calculated a predetermined overhead allocation rate at the beginning of the year based on direct labor costs. The production details for the year are given below: Total manufacturing overhead costs estimated at the beginning of the year Total direct labor costs estimated at the beginning of the year Total direct labor hours estimated at the beginning of the year Actual manufacturing overhead costs for the year Actual direct labor costs for the year Actual direct labor hours for the year 11,000 di 10,000 di Calculate the manufacturing overhead allocation rate for the year based on the above data (Round your final answer to two decimal places.) A. 28.00% B. 11.43% OC. 43.75% OD. 264.29%
In December, Davis Company had the following cost flows: Molding Department Grinding Department Finishing Department Direct materials $112,300 $29,200 $16,800 Direct labor 8,500 13,500 12,100 Applied overhead 9,400 60,800 11,000 Transferred-in cost: From Molding 130,200 From Grinding 233,700 Total cost $130,200 $233,700 $273,600 Required: 1. Prepare the journal entries to transfer costs from (a) Molding to Grinding, (b) Grinding to Finishing, and (c) Finishing to Finished Goods 1. Prepare the Dec. 31 journal entries to transfer costs from (a) Molding to Grinding, (b) Grinding to Finishing, and (c) Finishing to Finished Goods. Refer to the Chart of Accounts for the exact wording of account titles. Question not attempted. PAGE 15 GENERAL JOURNAL Score: 0/76 DATE ACCOUNT POST. REF. DEBIT CREDIT 1 2 3 4 5…
Classifying Costs The following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc. Evaluate and correct this report. Marching Ants Inc.Manufacturing CostsFor the Quarter Ended June 30 Materials used in production (including $31,100 of indirect materials) $335,900 Direct labor (including $46,700 maintenance salaries) 311,000 Factory overhead: Supervisor salaries 286,100 Heat, light, and power 77,800 Sales salaries 192,800 Promotional expenses 174,200 Insurance and property taxes—plant 84,000 Insurance and property taxes—corporate offices 121,300 Depreciation—plant and equipment 68,400 Depreciation—corporate offices 49,800 Total $1,701,300 Marching Ants Inc.Manufacturing CostsFor the Quarter Ended June 30 Cost of direct materials used in production $ ____ Direct labor ____ Factory overhead: Maintanance salaries $ _____ Indirect materials ____ Supervisor salaries ____ Heat, light, and power ____ Insurance and property taxes-plant ____…
Classifying Costs The following is a manufacturing cost report of Marching Ants Inc. Evaluate and correct this report. Marching Ants Inc.Manufacturing CostsFor the Quarter Ended June 30 Materials used in production (including $56,200 of indirect materials) $607,500 Direct labor (including $84,400 maintenance salaries) 562,500 Factory overhead: Supervisor salaries—plant 517,500 Heat, light, and power—plant 140,650 Sales salaries 348,750 Promotional expenses 315,000 Insurance and property taxes—plant 151,900 Insurance and property taxes—corporate offices 219,400 Depreciation—plant and equipment 123,750 Depreciation—corporate offices 90,000 Total $3,076,950 Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30

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