FUNDAMENTAL ACCOUNTING PRINCIPLES
24th Edition
ISBN: 9781264044375
Author: Wild
Publisher: McGraw-Hil
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Chapter 19, Problem 4E
Exercise 19-4
Recording product costs P1 P2 P3
Starr Company reports the following information for August.
Raw materials purchased on account............. $76,200
Direct materials used in production.............. $48,000
Factory wages earned (direct labor).............. $15,350
Prepare
1. Raw materials purchased.
2. Direct materials used in production.
3. Direct labor used in production.
4. Applied overhead.
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23. A company’s total overhead cost at various levels of activity is presented below: Month Machine-Hours Total Overhead Cost March ...................................... 5,000 $21,750 April ......................................... 4,000 $19,000 May ......................................... 6,000 $25,000 June ........................................ 7,000 $28,750 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 4,000 machine-hour level of activity is as follows: Utilities (variable) ............................... $ 8,000 Supervisory salaries (fixed) ................. 4,000 Maintenance (mixed) .......................... 7,000 Total overhead cost ............................ $19,000 Suppose the company uses the high-low method to estimate a cost formula for maintenance.
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Question 5
I.A Corporation uses the weighted-average method in its process costing system. The Painting Department is the second department in its production process. The data below summarize the department’s operations in January.
Units
Percent Complete with Respect to Conversion
Beginning work in process inventory...................................
7,100
70%
Transferred in from the preceding department during January................................................................................
61,000
Ending work in process inventory.........................................
4,600
30%
The Painting Department’s cost per equivalent unit for conversion cost for January was Rs. 8.24.
How much conversion cost was assigned to the units transferred out of the Painting Department during January?
Cost of goods manufactured, cost of goods sold, and income statementRichards, Inc., incurred the following costs during May:Raw materials used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 662,000Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,304,000Manufacturing overhead, actual. . . . . . . . . . . . . . . . . . . . . 896,000Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534,000Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 388,000Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182,000Required:During the month, 59,625 units of product were manufactured and 54,000 units of product were sold. On May 1, Richards, Inc., carried no inventories. On May 31, there were no inventories other than finished goods.a. Calculate the cost of goods manufactured during May and the average cost per unit of product manufactured.b. Calculate the cost of…
Chapter 19 Solutions
FUNDAMENTAL ACCOUNTING PRINCIPLES
Ch. 19 - Prob. 1DQCh. 19 - Some companies use labor cost to apply factory...Ch. 19 - Prob. 3DQCh. 19 - In a job order costing system, what records serve...Ch. 19 - What journal entry is recorded when a materials...Ch. 19 - Prob. 6DQCh. 19 - Google uses a "time ticket" for some employees....Ch. 19 - What events cause debits to be recorded in the...Ch. 19 - Prob. 9DQCh. 19 - Assume that Apple produces a batch of 1,000...
Ch. 19 - 11. Why must a company use predetermined overhead...Ch. 19 - How would a hospital apply job order costing?...Ch. 19 - Harley-Davidson manufactures 30 custom-made,...Ch. 19 - Prob. 14DQCh. 19 - Jobs and job lots C1 Determine which of the...Ch. 19 - Job cost sheets C2 Clemens Cars's job cost sheet...Ch. 19 - Documents in job order costing P1 P2 P3 The left...Ch. 19 - Raw materials journal entries P1 During the...Ch. 19 - Prob. 5QSCh. 19 - Prob. 6QSCh. 19 - Prob. 7QSCh. 19 - Prob. 8QSCh. 19 - Prob. 9QSCh. 19 - Prob. 10QSCh. 19 - Prob. 11QSCh. 19 - Prob. 12QSCh. 19 - Jab order costing of services A1 An advertising...Ch. 19 - Job order costing of services A1 An advertising...Ch. 19 - Job cost sheet C2 Eco Skate makes skateboards from...Ch. 19 - Exercise 19-1 Job order production C1 Match each...Ch. 19 - Exercise 19-2 Job cost computation C2 The...Ch. 19 - Exercise 19-3 Analysis of cost flows C2 As of the...Ch. 19 - Exercise 19-4 Recording product costs P1 P2 P3...Ch. 19 - Exercise 19-5 Manufacturing cost flows P1 P2 P3...Ch. 19 - Exercise 19-6 Recording events in job order...Ch. 19 - Exercise 19-7 Cost flows in a jab order costing...Ch. 19 - Exercise 19-8 Journal entries for materials P1 Use...Ch. 19 - Exercise 19-9 Journal entries for labor P2 Use...Ch. 19 - Exercise 19-10 Journal entries for overhead P3 Use...Ch. 19 - Exercise 19-11 Overhead rate; costs assigned to...Ch. 19 - Exercise 19-12 Analyzing costs assigned to work in...Ch. 19 - Exercise 19-13 Adjusting factory overhead P4 Refer...Ch. 19 - Exercise 19-14 Adjusting factory overhead P4...Ch. 19 - Prob. 15ECh. 19 - Prob. 16ECh. 19 - Exercise 19-17 Overhead rate calculation,...Ch. 19 - Exercise 19-18 Job order costing for services A1...Ch. 19 - Exercise 19-19 Job order costing of services A1...Ch. 19 - Exercise 19-20 Direct materials journal entries P1...Ch. 19 - Problem 19-1A Production costs computed and...Ch. 19 - Problem 19-2 A Source documents, journal entries,...Ch. 19 - Prob. 3APSACh. 19 - Prob. 4APSACh. 19 - Problem 19-5A Production transactions, subsidiary...Ch. 19 - Problem 19-1B Production costs computed and...Ch. 19 - Prob. 2BPSBCh. 19 - Prob. 3BPSBCh. 19 - Problem 19-4B Overhead allocation and adjustment...Ch. 19 - Problem 19-5B Production transactions, subsidiary...Ch. 19 - The computer workstation furniture manufacturing...Ch. 19 - The General Ledger tool in Connect automates...Ch. 19 - Manufacturers and merchandisers can apply...Ch. 19 - Prob. 2AACh. 19 - Apple and Samsung compete in the global...Ch. 19 - Assume that your company sells portable housing to...Ch. 19 - Assume that you are preparing for a second...Ch. 19 - Prob. 3BTNCh. 19 - Consider the activities undertaken by a medical...Ch. 19 - Refer to the chapter opener regarding Brennan...Ch. 19 - Prob. 6BTN
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