Managerial Accounting
7th Edition
ISBN: 9781260247886
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 2, Problem 2SP
SERIAL PROBLEM
Business Solutions P1 P2 P3
(This serial problem began in Chapter 1 and continues through most of the book. If previous chapter segments were not completed, the serial problem can begin at this point.)
SP 15 The computer workstation furniture manufacturing that Santana Rey started Rey started in January is progressing well. As of the end of June, Business Solutions’s
Job 602 was started in production in May, and these costs were assigned to it in Ma: direct materials, $600; direct labor, $180; and
Required
1. What is the cost of the raw material used in June for each of the three jobs and in total?
Check (1) Total materials, $6,900
2. How much total direct labor cost is incurred in June?
3. What predetermined overhead rate is used in June?
(3) 50%
4. How much cost is transferred to Finished Goods Inventory in June?
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Chapter 5 Homework
Job Costs Using a Plantwide Overhead Rate
Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was
$255,000, and budgeted direct labor hours were 17,000. The average wage rate for direct labor is expected to
be $30 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow:
Beginning balance
Materials requisitioned
Direct labor cost
Job 39 Job 40 Job 41
Job 42
$24,000
$32,900
$19,900
$0
20,800 23,200 10,400
12,800
11,900
20,300
5,050
3,700
Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39
was sold at 115 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that
customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to
hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished…
Question 3
Teratoor Space provides interior design services in Bandar Teemor. It uses a job order costing system to
accept orders from the customers. The manufacturing overhead cost is absorbed based on direct labour
hour. The budgeted manufacturing overhead cost for the month of January is RM96,500. Management
expects a total of 19,300 direct labour hours will be used.
Prepare journal entries for the month of January:
Jan
Particular
13
19
22
26
30
Purchase 200 boxes of direct material
from Bharatt on credit for RM4,200.
55 boxes of direct material was requested
from the store for production. It was
bought for RM11.50 per box.
The decoration section has purchased
240 boxes indirect material which cost
RM26.10 per box from Otara by cash.
Direct labour cost paid for the month of
January amounted to RM5,900.
The depreciation cost of delivery van for
the month of January is RM770.
For the month of January, a total of 6,300
direct labour hours have been utilised.
Chapter 2 Solutions
Managerial Accounting
Ch. 2 - Prob. 1MCQCh. 2 - A company uses direct labor costs to apply...Ch. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Prob. 1DQCh. 2 - Some companies use labor cost to apply factory...Ch. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQ
Ch. 2 - Prob. 6DQCh. 2 - GOOGLE Google uses a “time ticket” for some...Ch. 2 - What events cause debits to be recorded in the...Ch. 2 - GOOGLE Google applies overhead to product costs....Ch. 2 - Prob. 10DQCh. 2 -
11. Why must a company use predetermined...Ch. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 1QSCh. 2 - Prob. 2QSCh. 2 - Prob. 3QSCh. 2 - Prob. 4QSCh. 2 - Prob. 5QSCh. 2 - Prob. 6QSCh. 2 - Prob. 7QSCh. 2 - Prob. 8QSCh. 2 - Prob. 9QSCh. 2 - Prob. 10QSCh. 2 - Prob. 11QSCh. 2 - Prob. 12QSCh. 2 - Prob. 13QSCh. 2 - Prob. 14QSCh. 2 - Job order productions C1 Refer to this chapter’s...Ch. 2 - Prob. 1ECh. 2 - Prob. 2ECh. 2 - Exercise 15-13 Analysis of cost flows C2
As of the...Ch. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Exercise 15-7 Cost flows in a job order costing...Ch. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - Prob. 11ECh. 2 - Prob. 12ECh. 2 - Prob. 13ECh. 2 - Prob. 14ECh. 2 - Prob. 15ECh. 2 - Prob. 16ECh. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Prob. 20ECh. 2 - Prob. 1PSACh. 2 - Prob. 2PSACh. 2 - Prob. 3PSACh. 2 - Prob. 4PSACh. 2 - Prob. 5PSACh. 2 - Prob. 1PSBCh. 2 - Prob. 2PSBCh. 2 - Prob. 3PSBCh. 2 - Prob. 4PSBCh. 2 - Prob. 5PSBCh. 2 - SERIAL PROBLEM Business Solutions P1 P2 P3 (This...Ch. 2 - Prob. 1GLPCh. 2 - Prob. 1AACh. 2 - Prob. 2AACh. 2 - Apple and Samsung compete in the global...Ch. 2 - ETHICS CHALLENGE P3 BIN 15-3 Assume that your...Ch. 2 - COMMUNICATING IN PRACTICE C1 C2
BTN 15-4 Assume...Ch. 2 - Prob. 3BTNCh. 2 - Prob. 4BTNCh. 2 - Prob. 5BTNCh. 2 - Prob. 6BTN
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