Essay on Acc 206 Week three Assignment

1298 Words Aug 4th, 2014 6 Pages
Chapter 4 and 5 Problems

Please complete the following 7 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button.

Chapter 4 Exercise 3
3. Cost flows and overhead application
Cleveland Metals uses a job cost system and applies factory overhead to production at a predetermined rate of 180% of direct labor cost. Data pertaining to recent operations follow.
Job no. 636 was the only job in process on January 1 of the current year. The Work in Process account contained a $24,600 balance on this date.
Jobs no.
…show more content…
The firm's fiscal year ends on May 31.

a. Compute the total overhead applied to production during May.

Total overhead applied to production: Direct labor incurred $114,500 Overhead application rate x 150% Applied overhead $171,500

b. Compute the cost of the ending work in process inventory.

Job # 115 Direct Materials 19,500 Direct Labor 42,000 Factory overhead (150% of direct labor) 63,000 Total cost 124,500

c. Compute the cost of jobs completed during May.

Job 101 Job 103 Job 116 Other

Beginning WIP 20400 14800 $ - $ - Direct Materials 5000 - 36200 35800 Direct Labor 7800 20800 18000 25900 Factory overhead (150%of direct labor) 11700 31200 27000 38850 Total costs 44900 66800 81200 100550

Total cost of all jobs completed: $293,450

d. Compute the cost of goods sold for the year ended May 31.

Cost of goods sold for the year ended May 31: Beginning cost of goods sold $128700 Cost of jobs sold during the month Job 101 (total costs above) $44900 Three "other" jobs Direct material $21000 Direct labor $17400 Factory overhead (150% of direct labor) $26100 $109400 Total cost of goods sold $238100

Chapter 5 Exercise 1
1. High-low method
Open Document