Questions On Managerial Accounting : Module 3

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Managerial Accounting: Module 3 M. Peter Aspen University: BSU510 10-26-14 Exercise E3-28A, page 144: Recording journal entries 1. Journal entry for Dutch fabricators: As indicated on page 119,120,121 and 122 below are the journal entries. 1 .A. Accounts entry DEBIT CREDIT a Raw Materials Inventory $190000 Accounts Payable $190000 1.b b Work in Process Inventory $152000 Manufacturing Overhead $22000 Raw Materials Inventory $174000 1.c. c Work in Process Inventory $190000 Manufacturing Overhead $35000 Payable Wages $225000 1.d. d Manufacturing Overhead $30000 Depreciation pant/equipment $20000 Payable Utilities $10000 1.e. e Work in Process Inventory $81000 Manufacturing Overhead $81000 2. Actual manufacturing overhead $87000 Allocated manufacturing overhead $81000 By end of January manufacturing overhead cost has been under allocated by $6000 Exercise S4-19, page 209: Quality Initiative Decision 1. Based on the explanation on page 201 below are the details of each cost and respective category: a. Prevention costs: i. Negotiating with and training suppliers to obtain higher-quality material and on-time delivery. ii. Redesigning the speakers to make them easier to manufacture b. Appraisal costs: i. Additional 20 minutes of testing for each speaker. ii. Avoid inspection of raw material c. Internal failure costs: i. Rework avoided because of fewer defective units. ii. Lost production
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