Paper , Order, or Assignment Requirements

TCO 1) On December 31, 2015, ABC Inc. has a balance in the Finished Goods Inventory account of $20,000. On January 1, 2015, the balance in the Finished Goods Inventory account was $45,000. On December 31, 2015, the balance in the Work-in-Process inventory account is $5,000. On January 1,  2015, the balance in the Work-in-Process inventory account is $12,000. Cost of goods manufactured is $290,000. How much is cost of goods sold? (Points : 7)       $265,000

$315,000

$283,000

$297,000

 

           (TCO 2) Which of the companies below would be most likely to use job-order costing? (Points : 7)       A potato chip manufacturer

A custom aircraft manufacturer

A pharmaceutical manufacturer

A dairy farm

 

           (TCO 2) Cindy Company applies manufacturing overhead based on labor hours. Information concerning manufacturing overhead cost and hours for August follows.

 Estimated                             Actual

Overhead cost                         $300,000                        $200,000

Direct labor hours                       25,000                             30,000

Machine hours                             15,000                             20,000

How much is the predetermined overhead rate? (Points : 7)       $12.00

$6.66

$20.00

$10.00

 

           (TCO 2) During 2015, Kim Company applied overhead using a job-order costing system at a rate of $12 per direct labor hour. Estimated direct labor hours for the year were 125,000, and estimated overhead for the year was $1,500,000. Actual direct labor hours for 2015 were 130,000, and actual overhead was $1,650,000. What is the amount of under- or over-applied overhead for the year? (Points : 7)       $90,000 over-applied

$90,000 under-applied

$150,000 over-applied

$150,000 under-applied 

 

2. (TCO 3) James Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is provided regarding the Forming Department:

Forming Department

Month Ended June 30

Unit information

Beginning work in process, June 1 — 4,000

Started into production during June — 22,000

Completed and transferred to Finished Department during June — 20,000

Ending work in process, June 30 (20% complete as to direct materials and 50% complete as to conversion costs) — 6,000

Cost information:

Beginning work in process as of June 1 (consists of $1,000 of direct materials costs and $4,500 of conversion costs) — $5,500

Direct materials used in June — $7,268

Conversion costs incurred in June — $32,990

Required:

(a) Calculate the equivalent units for conversion costs. (Show your work)

(b) Calculate the cost per equivalent unit for conversion costs. (Show your work) (Points : 30) 

 

 

(TCO 3) James Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is provided regarding the Forming Department:

Forming Department

Month Ended June 30

Unit information

Beginning work in process, June 1 — 4,000

Started into production during June — 22,000

Completed and transferred to Finished Department during June — 20,000

Ending work in process, June 30 (20% complete as to direct materials and 50% complete as to conversion costs) — 6,000

Cost information:

Beginning work in process as of June 1 (consists of $1,000 of direct materials costs and $4,500 of conversion costs) — $5,500

Direct materials used in June — $7,268

Conversion costs incurred in June — $32,990

Required:

(a) Calculate the equivalent units for conversion costs. (Show your work)

(b) Calculate the cost per equivalent unit for conversion costs. (Show your work) (Points : 30) 

 

                (TCO 6) Classify each of the costs below within the ABC costing hierarchy as either unit-level, batch-level, product-level, or facility-level. 

(a) Cost to inspect each product as it is finished

(b) Factory depreciation

(c) Machine setup 

(d) Costs to hire human resource personnel

(e) Salary for a product-line manager

(f)  Receiving raw materials from vendors (Points : 30) 

 

(TCO 2) Drake Company incurred costs of $77,000 for direct materials (raw) purchased. Direct labor was $45,000 and factory overhead was $22,000 for March.

Inventories were as follows:

Raw materials beginning $10,000; raw materials ending $14,000

Work-in-process beginning $36,000; work-in-process ending $24,000

Finished goods beginning $5,000; finished goods ending $10,000

Required: Calculate the cost of goods manufactured for March for Drake Company. Show your work. (Points : 30)