15th Edition

ISBN: 9781337902663

Author: WARREN, Carl S.

Publisher: Cengage Learning,

Concept explainers

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing …

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In compari…

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Textbook Question

Chapter 16, Problem 4PA

Analyzing manufacturing cost accounts

Fire Rock Company manufactures designer paddle boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for June:

Chapter 16, Problem 4PA, Analyzing manufacturing cost accounts Fire Rock Company manufactures designer paddle boards in a , example 1

In addition, the following information is available:

A. Materials and direct labor were applied to six jobs in June:

Chapter 16, Problem 4PA, Analyzing manufacturing cost accounts Fire Rock Company manufactures designer paddle boards in a , example 2

B. Factory overhead is applied to each job at a rate of 140% of direct labor cost.
C. The June 1 Work in Process balance consisted of two jobs, as follows:

Chapter 16, Problem 4PA, Analyzing manufacturing cost accounts Fire Rock Company manufactures designer paddle boards in a , example 3

D. Customer jobs completed and units sold in June were as follows:

Chapter 16, Problem 4PA, Analyzing manufacturing cost accounts Fire Rock Company manufactures designer paddle boards in a , example 4

Instructions

1. Determine the missing amounts associated with each letter. Provide supporting computations by completing a table with the following headings:

Chapter 16, Problem 4PA, Analyzing manufacturing cost accounts Fire Rock Company manufactures designer paddle boards in a , example 5

2. Determine the June 30 balances for each of the inventory accounts and factory overhead.

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Chapter 16, Problem 3PA

Chapter 16, Problem 5PA

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Chapter 16 Solutions

Financial And Managerial Accounting

Ch. 16 - A. Name two principal types of cost accounting...Ch. 16 - What kind of firm would use a job order cost...Ch. 16 - Prob. 3DQ Ch. 16 - Prob. 4DQ Ch. 16 - What is a job cost sheet?Ch. 16 - Prob. 6DQ Ch. 16 - Discuss how the predetermined factory overhead...Ch. 16 - A. How is a predetermined factory overhead rate...Ch. 16 - A. What is (1) overapplied factory overhead and...Ch. 16 - Describe how a job order cost system can be used...

Ch. 16 - Issuance of materials On May 7, Bergan Company...Ch. 16 - Direct labor costs During May, Bergan Company...Ch. 16 - Factory overhead costs During May, Bergan Company...Ch. 16 - Applying factory overhead Bergan Company estimates...Ch. 16 - Job costs At the end of May, Bergan Company had...Ch. 16 - Cost of goods sold Pine Creek Company completed...Ch. 16 - Transactions in a job order cost system Five...Ch. 16 - The following information is available for the...Ch. 16 - Cost of materials issuances under the FIFO method...Ch. 16 - Prob. 4E Ch. 16 - Kingsford Furnishings Company manufactures...Ch. 16 - A summary of the time tickets is as follows:...Ch. 16 - Entry for factory labor costs The weekly time...Ch. 16 - Schumacher Industries Inc. manufactures...Ch. 16 - Eclipse Solar Company operates two factories. The...Ch. 16 - Exotic Engine Shop uses a job order cost system to...Ch. 16 - Predetermined factory overhead rate Obj. 2...Ch. 16 - The following account appears in the ledger prior...Ch. 16 - Collegiate Publishing Inc. began printing...Ch. 16 - The following events took place for Rushmore...Ch. 16 - Job order cost accounting for a service company...Ch. 16 - Job order cost accounting for a service company...Ch. 16 - Barnes Company uses a job order cost system. The...Ch. 16 - Entries and schedules for unfinished jobs and...Ch. 16 - Job cost sheet Remnant Carpet Company sells and...Ch. 16 - Analyzing manufacturing cost accounts Fire Rock...Ch. 16 - Prob. 5PA Ch. 16 - Entries for costs in a job order cost system Royal...Ch. 16 - Entries and schedules for unfinished jobs and...Ch. 16 - Job cost sheet Stretch and Trim Carpet Company...Ch. 16 - Analyzing manufacturing cost accounts Clapton...Ch. 16 - Prob. 5PB Ch. 16 - Antolini Enterprises produces mens sports coats...Ch. 16 - Alvarez Manufacturing Inc. is a job shop. The...Ch. 16 - Raneri Trophies Inc. uses a job order cost system...Ch. 16 - Brady Furniture Company manufactures wooden oak...Ch. 16 - Ethics in Action TAC Industries Inc. sells heavy...Ch. 16 - Team Activity As an assistant cost accountant for...Ch. 16 - Prob. 3TIF Ch. 16 - RIRA Company makes attachments such as backhoes...Ch. 16 - Todd Lay just began working as a cost accountant...Ch. 16 - Baldwin Printing Company uses a job order cost...Ch. 16 - John Sheng, a cost accountant at Starlet Company,...Ch. 16 - Lucy Sportswear manufactures a specialty line of...Ch. 16 - Patterson Corporation expects to incur 70,000 of...

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Solution Summary: The author calculates the missing amounts associated with each letter. Job order costing is used when the products produced are significantly different from each other.

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Chapter 16 Solutions