Question Details

(solution) Prepare a cost of goods sold schedule for the quarter.


Prepare a cost of goods sold schedule for the quarter.


ACC00146 ? 2016 S2

 

ASSIGNMENT 1 (20 marks)

 

QUESTION 1 (5 MARKS)

 

You have been employed as an entry-level management accountant for a little under a

 

year. You suspect that your immediate supervisor is involved in a significant fraud

 

involving diverting of company assets to personal use. Briefly discuss the steps you

 

might take to resolve this dilemma and use a real world example (not hypothetical) to

 

support your discussion.

 

Question 2 (5 MARKS)

 

Lismore Manufacturing Company had the following account balances for the quarter

 

ending March 31, unless otherwise noted:

 

Work-in-process inventory (January 1)

 

$ 140,400

 

Work-in-process inventory (March 31)

 

171,000

 

Finished goods inventory (January 1)

 

540,000

 

Finished goods inventory (March 31)

 

510,000

 

Direct materials used

 

378,000

 

Indirect materials used

 

84,000

 

Direct manufacturing labor

 

480,000

 

Indirect manufacturing labor

 

186,000

 

Property taxes on manufacturing plant building 28,800

 

Salespersons' company vehicle costs

 

12,000

 

Depreciation of manufacturing equipment

 

264,000

 

Depreciation of office equipment

 

123,600

 

Miscellaneous plant overhead

 

135,000

 

Plant utilities

 

92,400

 

General office expenses

 

305,400

 

Marketing distribution costs

 

30,000

 

Required:

 

a.

 

b.

 

c.

 

d. Prepare a cost of goods manufactured schedule for the quarter. (1 mark)

 

Prepare a cost of goods sold schedule for the quarter. (1 mark)

 

Indentify inventoriable and period costs. (1 mark)

 

Of what value is the schedule of cost of goods manufactured? How does it tie into

 

the income statement? Discuss and use examples to support your discussion. (2

 

marks) Question 3 (5 MARKS)

 

The Dougherty Furniture Company manufactures tables. In March, the two production

 

departments had budgeted allocation bases of 4,000 machine-hours in Department 100

 

and 8,000 direct manufacturing labor-hours in Department 200. The budgeted

 

manufacturing overheads for the month were $57,500 and $62,500, respectively. For Job

 

A, the actual costs incurred in the two departments were as follows:

 

Department 100 Department 200

 

Direct materials purchased on account $110,000

 

$177,500

 

Direct materials used

 

32,500

 

13,500

 

Direct manufacturing labor

 

52,500

 

53,500

 

Indirect manufacturing labor

 

11,000

 

9,000

 

Indirect materials used

 

7,500

 

4,750

 

Lease on equipment

 

16,250

 

3,750

 

Utilities

 

1,000

 

1,250

 

Job A incurred 800 machine-hours in Department 100 and 300 manufacturing labor-hours

 

in Department 200. The company uses a budgeted overhead rate for applying overhead to

 

production.

 

Required:

 

a. Determine the budgeted manufacturing overhead rate for each department. (1 mark)

 

b. Prepare the necessary journal entries to summarize the March transactions for

 

Department 100. (2 marks)

 

c. What is the total cost of Job A? (1 mark)

 

d. What factors should be considered in selecting an allocation base to be used in

 

computing the budgeted overhead rate? Discuss and use examples to support your

 

discussion. (1 mark)

 

Question 4 (5 MARKS)

 

a. Silver Spoon Incorporated is a manufacturer of kitchen utensils. It produces all of its

 

products in one department. The information for the current month is as follows:

 

Beginning work in process

 

Units started

 

Units completed

 

Ending work in process

 

Spoilage

 

Beginning work-in-process direct materials

 

Beginning work-in-process conversion

 

Direct materials added during month

 

Direct manufacturing labor during month 37,500 units

 

55,000 units

 

75,000 units

 

14,500 units

 

3,000 units

 

$25,000

 

$ 10,000

 

$113,750

 

$40,020 Beginning work in process was 25% complete as to conversion. Direct materials are added at the beginning of the process. Factory overhead is applied at a rate equal to

 

37.5% of direct manufacturing labor. Ending work in process was 60% complete. All

 

spoilage is normal and is detected at the end of the process.

 

Required:

 

a. Prepare a production cost worksheet if spoilage is recognized and the

 

weighted-average method is used. (3 marks)

 

b. Why is cost accumulation easier under a process costing system than under a

 

job order costing system? Discuss and use examples to support your

 

discussion. (2 marks)

 

THE END

 


Solution details:

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 13, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now