Accounting - Managerial Accounting Assignment
Part A - Use the following information for Question 1 and 2
Gerry, Ltd has two departments, Filling and Printing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Filling Department bases its rate on machine-hours, and the Printing Department bases its rate on direct labor hours. At the beginning of the year, the company made the following estimates:
Q1) Compute the predetermined overhead rate to be used in each department
Sanding:_______________ Assembly:________________
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Department
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|
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Filling
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Printing
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Direct Labor hours
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14,000
|
75,000
|
|
Machine hours
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120,000
|
15,000
|
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Manufacturing overhead cost
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$ 960,000
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$ 675,000
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|
Direct labor cost
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$ 168,000
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$ 1,050,000
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Q2) Assume that the overhead rates that you computed in (1) above are in effect. The job cost sheet for Job 2006, which was started and completed during the year, showed the following:
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Department
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|
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Filling
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Printing
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Direct Labor hours
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36
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22
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Machine hours
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60
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12
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Direct Materials
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$ 6,300
|
$ 820
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|
Direct Labor cost
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$ 432
|
$ 528
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Compute the overhead cost applied to Job 2006 for both departments. Then give me the total cost of BOTH jobs
SANDING___________
ASSEMBLY__________ TOTAL______________
Part B - Use the following information for problems 3, 4, and 5.
Smaug, Inc., a chemical company, processes chemicals for various manufacturers of office cleaners. Data relating to pounds processed during October are provided below:
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Pounds
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Percent Completed
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Materials
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Labor and Overhead
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Work in Process, October 1
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80,000
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50%
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40%
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|
Work in process, October 30
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50,000
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60%
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40%
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|
Started into production during October
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220,000
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|
|
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Transferred during October
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250,000
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|
|
Q3) Compute the equivalent units of production for Materials and for Labor and Overhead for October:
1. a) Material - 220,000, Labor & OH - 220,000 c) Material - 250,000, Labor & OH - 250,000
2. b) Material - 280,000, Labor & OH - 270,000 d) Material - 290,000, Labor & OH - 282,000
Use the following information to answer Question 4 (and the information from question 3)
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Material
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Labor and Overhead
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Beginning Work-in-Process
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$ 142,000
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$ 296,000
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|
Added During the Period
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$ 698,000
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$ 1,189,000
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Q4) What is the Cost per Equivalent Unit for the month of October?
1. Material - $3.82, L&H - $6.75 c. Material - $2.79, L&H $4.76
2. Material - $3.00, L&H - $4.50 d. Material - $3.36, L&H $5.94
Q5) What is the Cost of Goods Transferred for the period (Use the information from Questions 3 and 4)?
a. $2,642,500
b. $1,875,000
c. $1,887,500
d. $2,325,000
Just need questions 3, 4 and 5.