Alvarez Manufacturing Inc. is a job shop. The management of Alvarez Manufacturing Inc. uses the cost information from the job sheets to assess cost performance. Information on the total cost, product type, and quantity of items produced is as follows: Date Job No. Product Quantity Amount Jan. 2 TT 520 $16,120 1 Jan. 15 22 1,610 20,125 Feb. 3 30 SS 1,420 25,560 Mar. 7 41 TT 670 15,075 Mar. 24 49 SLK 2.210 22,100 May 19 58 SLK 2.550 31.875 June 12 65 TT 620 10,540 Aug. 18 78 SLK 3.110 48,205 Sept. 2 82 1,210 16,940 Nov. 14 92 TT 750 8,250 Dec. 12 98 SLK 2,700 52,650 a. On your own paper, develop a graph for each product (three graphs), with Job Number (in date order) on the horizontal axis and Unit Cost on the vertical axis. Then, determine Alvarez Manufacturing Inc.'s cost performance over time for the three products. Round all answers to the nearest cent. Job No. Unit Cost 22 30 41 49 58 65 78 82 92 98 b. Where is the best place to look to investigate Alvarez Manufacturing's cost performance more precisely?

Alvarez Manufacturing Inc. is a job shop. The management of Alvarez Manufacturing Inc. uses the cost information from the job sheets to assess cost performance. Information on the total cost, product type, and quantity of items produced is as follows: Date Job No. Product Quantity Amount Jan. 2 TT 520 $16,120 1 Jan. 15 22 1,610 20,125 Feb. 3 30 SS 1,420 25,560 Mar. 7 41 TT 670 15,075 Mar. 24 49 SLK 2.210 22,100 May 19 58 SLK 2.550 31.875 June 12 65 TT 620 10,540 Aug. 18 78 SLK 3.110 48,205 Sept. 2 82 1,210 16,940 Nov. 14 92 TT 750 8,250 Dec. 12 98 SLK 2,700 52,650 a. On your own paper, develop a graph for each product (three graphs), with Job Number (in date order) on the horizontal axis and Unit Cost on the vertical axis. Then, determine Alvarez Manufacturing Inc.'s cost performance over time for the three products. Round all answers to the nearest cent. Job No. Unit Cost 22 30 41 49 58 65 78 82 92 98 b. Where is the best place to look to investigate Alvarez Manufacturing's cost performance more precisely?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March: a. Materials purchased on account, $770,000. b. Materials requisitioned, $680,000, of which $75,800 was for general factory use. c. Factory labor used, $756,000, of which $182,000 was indirect. d. Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500; and administrative expenses, $110,600. e. Prepaid expenses expired for factory overhead were $24,500; for selling expenses, $28,420; and for administrative expenses, $16,660. f. Depreciation of factory equipment was $49,500; of office equipment, $61,800; and of office building, $14,900. g. Factory overhead costs applied to jobs, $568,500. h. Jobs completed, $1,500,000. i. Cost of goods sold, $1,375,000. Required: Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it…
Harper Company uses a job order cost system. Journalize the entries for materials and labor, based on the following data:Raw materials issued: Job No. 609, $850; for general use in factory, $600Labor time tickets: Job No. 609, $1,600; $400 for supervision If an amount box does not require an entry, leave it blank. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 fill in the blank 17 fill in the blank 18
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24. Miller Company's allowance for doubtful accounts was P1,000,000 at the end 20XX and P900,000 at the end of 20XX-1. For the year ended December 31, 20XX, Mill reported doubtful accounts expense of P160,000 in its income statement. What amount did Mill debit to the appropriate account in 20XX to write off uncollectible accounts?
The following selected data were taken from the books of the Owens O-Rings Company. The company uses job costing to account for manufacturing costs. The data relate to April operations. (1) Materials and supplies were requisitioned from the stores clerk as follows: Job 405, material X, $7,100. Job 406, material X. $3,100: material Y, $6,100. Job 407. material X, $7,100; material Y, $3.30o. For general factory use: materials A, B, and C. $2,400. (2) Time tickets for the month were chargeable as follows: $ 11,100 $ 14,100 $ 8,100 $ 3,800 Job 405 3,100 hours Job 406 3,700 hours Job 407 2,000 hours Indirect labor (3) Other information: Factory paychecks for $36,800 were issued during the month. Various factory overhead charges of $19,500 were incurred on account. Depreciation of factory equipment for the month was $5,50o. Factory overhead was applied to jobs at the rate of $3.30 per direct labor hour. Job orders completed during the month: Job 405 and Job 406. Selling and administrative…
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Entries for Costs in a Job Order Cost System Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March: Materials purchased on account, $604,590. Materials requisitioned, $507,860, of which $66,020 was for general factory use. Factory labor used, $622,730, of which $118,320 was indirect. Other costs incurred on account for factory overhead, $145,100; selling expenses, $223,700; and administrative expenses, $133,010. Prepaid expenses expired for factory overhead were $27,810; for selling expenses, $23,580; and for administrative expenses, $16,930. Depreciation of factory equipment was $27,810; of office equipment, $41,110; and of office building, $81,020. Factory overhead costs applied to jobs, $344,620. Jobs completed, $798,060. Cost of goods sold, $773,880. Required: Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank. a. Materials purchased…
1. How much overhead would have been charged to the company’s Work-in-Process account during the year? 2. Comment on the appropriateness of the company’s cost drivers (i.e., the use of machine hours in Machining and direct-labor cost in Assembly).
The Prancing Pony utilizes a job-order costing system for accumulating their product costs. They had the following jobs during the month: Job A Job B Job C Job D Beginning balance 67,700 77,200 23,000 55,100 Direct materials used 92,800 67,000 60,500 75,900 Direct labor 47,400 80,300 81,100 83,900 Applied manufacturing overhead 97,000 10,300 14,900 81,500 Job A was unfinished at the end of the period. Job B and D were finished, and subsequently sold. Job C was finished, but had not yet been sold at the end of the period. The time ticket record revealed that Employee Underhill worked on Job A, while Employee Baggins worked on Job B, C, and D. Each job represents a small batch of 400 units. As the manager for The Prancing Pony, you previously set and communicated with employees that in order to meet budgetary goals, each unit should require no more than $150 of direct labor and $200 of direct materials. Using the information provided, what is the reported cost…
Accounting Diet Company manufactures office tables and chairs using the job order cost system. The following data were taken from the records as of April 30, the first month of operations Job No. Materials Cost DL Hours Direct Labor Cost 121 2,160.00 650 800.00 122 4,575.00 1,850 3,625.00 123 5,637.50 4,100 7,162.50 124 1,612.50 750 1,400.00 125 3,250.00 1,600 3,050.00 126 1,375.00 490 825.00 In April, Job Numbers 121, 122, 124, and 125 were completed. Job No. 124 and 125 were sold for P6,250 and P15,897.50, respectively. Overhead is applied to the jobs at the rate of P1.50 per direct labor hour. Actual Factory overhead for April amounted to P15,175 1. Over/under applied overhead amounts to? 2. The total cost of goods manufactured for the month was? 3. The gross profit for the month? 4. The cost of goods sold actual for the month ? explain first 3 subparts
Kaymer Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations: a. Materials purchased on account, $28,790. b. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $2,880 $2,910 302 3,690 3,860 303 2,300 1,780 304 7,820 6,990 305 5,310 5,050 306 3,700 3,280 For general factory use 1,070 4,180 c. Factory overhead costs incurred on account, $5,600. d. Depreciation of factory machinery and equipment, $1,970. e. The factory overhead rate is $53 per machine hour. Machine hours used: Job Machine Hours 301 25 302 34 303 30 304 71 305 42 306 26 Total 228 f. Jobs completed: 301, 302, 303, and 305. g. Jobs were shipped and customers were billed as follows: Job 301, $8,270; Job 302, $11,720; Job 303, $15,730. Required: 1. Journalize the entries to…
Ialani Corp. uses a job order costing system for the yachts it constructs. On September 1, the company had the following account balances: Raw Material Inventory $465,360 Work in Process Inventory $2,117,640 Cost of Goods Sold $6,809,600 On September 1, the three jobs in Work in Process Inventory had the following balances: Job #75 $820,960 Job #78 $373,240 Job #82 $923,440 The following transactions occurred during September: 09-01 Purchased $2,716,000 of raw material on account. 09-04 Issued $2,660,000 of raw material as follows: Job #75, $405,440; Job #78 $353,640 ; Job #82, $1,389,080 ; Job #86, $437,360 ; and indirect material, $74,480. 09-15 Prepared and paid the $1,059,800 factory payroll for September 1–15. Analysis of this payroll showed the following information: Hours Dollars Job #75 13,524 $118,440 Job #78 36,848 $374,080 Job #82 28,420 $284,200 Job #86 14,392 $155,120 Indirect Labor Wages $127,960 09-15 On each payroll date, Ialani…