ACCOUNTING PRINCIPLES 222 5/16 >C<
2nd Edition
ISBN: 9781323461525
Author: Horngren
Publisher: PEARSON C
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Textbook Question
Chapter 18, Problem S18.4SE
Computing manufacturing
Learning Objective 2
Sunglasses Unlimited Company manufactures sunglasses Following is a list of costs the company incurred during May. Use the list to calculate the total
| Glue for frames | $ 250 |
| 4,000 | |
| Plant depreciation | 7,500 |
| Interest Expense | 1,500 |
| Lenses | 52,000 |
| Company president's salary | 24,500 |
| Plant foreman's salary | 3,500 |
| Plant janitor's wages | 1,300 |
| Oil for manufacturing equipment | 150 |
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eBook
Job Costs Using a Plantwide Overhead Rate
Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $270,000, and budgeted direct labor hours were 18,000. The average wage rate for direct labor is expected to be $30 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow:
Job 39
Job 40
Job 41
Job 42
Beginning balance
$26,100
$33,900
$17,800
$0
Materials requisitioned
19,500
23,000
8,000
14,100
Direct labor cost
10,600
20,100
2,650
5,000
Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 120 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in…
Question 2:
Ahlia Products Company uses an automated process to clean and polish its souvenir
items. For March, the company had the following activities:
Beginning work in process inventory
Units placed in production
Ending work in process inventory
80 items, 40% complete
200 units
160 items, 75% complete
Beginning work-in-process direct materials S1,000
Beginning work-in-process conversion
Direct materials added during month
Direct manufacturing labor during month
Factory overhead during month
$1,000
$1,200
$900
$140
Direct materials are placed into production at the Ending of the process and
conversion costs are incurred evenly throughout the process.
Instructions:
Prepare a production cost worksheet using the FIFO method.
eBook
Question Content Area
Job Cost Flows
Roseler Company uses a normal job-order costing system. The company has two departments through which most jobs pass. Overhead is applied using a plantwide overhead rate of $10 per direct labor hour. During the year, several jobs were completed. Data pertaining to one such job, Job 9-601, follow:
Direct materials
$12,000
Direct labor cost:
Department A (450 hours @ $18)
$8,100
Department B (120 hours @ $18)
$2,160
Machine hours used:
Department A
200
Department B
800
Units produced
1,000
Required:
1. Compute the total cost of Job 9-601.$fill in the blank 1
2. Compute the per-unit manufacturing cost for Job 9-601. Round your answer to two decimal places.$fill in the blank 2
For Requirements 3 and 4, assume that Roseler uses departmental overhead rates. In Department A, overhead is applied at the rate of $3 per direct labor hour. In Department B, overhead is applied at the rate of $7 per machine hour.
3.…
Chapter 18 Solutions
ACCOUNTING PRINCIPLES 222 5/16 >C<
Ch. 18 - Prob. 1QCCh. 18 - Prob. 2QCCh. 18 - Dunaway Company reports the following costs for...Ch. 18 - Which of the following is a direct cost of...Ch. 18 - Which of the following is not part of...Ch. 18 - Which of the following accounts does a...Ch. 18 - Questions 7 and 8 use the data that follow....Ch. 18 - Questions 7 and 8 use the data that follow....Ch. 18 - World-class businesses use which of these systems...Ch. 18 - Prob. 10QC
Ch. 18 - What is the primary purpose of managerial...Ch. 18 - List six differences between financial accounting...Ch. 18 - Explain the difference between line positions and...Ch. 18 - Explain the differences between planning,...Ch. 18 - Prob. 5RQCh. 18 - Describe a service company, and give an example.Ch. 18 - Describe a merchandising company, and give an...Ch. 18 - How do manufacturing companies differ from...Ch. 18 - List the three inventory accounts used by...Ch. 18 - Explain the difference between a direct cost and...Ch. 18 - What are the three manufacturing costs for a...Ch. 18 - Give five examples of manufacturing overhead.Ch. 18 - What are prime costs? Conversion costs?Ch. 18 - What are product costs?Ch. 18 - How do period costs differ from product costs?Ch. 18 - How is cost of goods manufactured calculated?Ch. 18 - How does a manufacturing company calculate cost of...Ch. 18 - How does a manufacturing company calculate unit...Ch. 18 - How does a service company calculate unit cost per...Ch. 18 - How does a merchandising company calculate unit...Ch. 18 - Prob. S18.1SECh. 18 - Prob. S18.2SECh. 18 - Prob. S18.3SECh. 18 - Computing manufacturing overhead Learning...Ch. 18 - Prob. S18.5SECh. 18 - Prob. S18.6SECh. 18 - Computing cost of goods sold and operating income,...Ch. 18 - Prob. S18.8SECh. 18 - Prob. S18.9SECh. 18 - Prob. S18.10SECh. 18 - Prob. S18.11SECh. 18 - Prob. S18.12SECh. 18 - Prob. S18.13SECh. 18 - Prob. E18.14ECh. 18 - Prob. E18.15ECh. 18 - Prob. E18.16ECh. 18 - Prob. E18.17ECh. 18 - Prob. E18.18ECh. 18 - Prob. E18.19ECh. 18 - Computing cost of goods manufactured Learning...Ch. 18 - Computing cost of goods manufactured Consider the...Ch. 18 - Prob. E18.22ECh. 18 - Prob. E18.23ECh. 18 - Prob. E18.24ECh. 18 - Prob. E18.25ECh. 18 - Prob. P18.26APGACh. 18 - Classifying period costs and product costs...Ch. 18 - Prob. P18.28APGACh. 18 - Prob. P18.29APGACh. 18 - Prob. P18.30APGACh. 18 - Prob. P18.31APGACh. 18 - Prob. P18.32APGACh. 18 - Prob. P18.33APGACh. 18 - Prob. P18.34BPGBCh. 18 - Prob. P18.35BPGBCh. 18 - Prob. P18.36BPGBCh. 18 - Prob. P18.37BPGBCh. 18 - Prob. P18.38BPGBCh. 18 - Prob. P18.39BPGBCh. 18 - Prob. P18.40BPGBCh. 18 - Prob. P18.41BPGBCh. 18 - Prob. P18.42CPCh. 18 - Prob. 18.1DCCh. 18 - Prob. 18.1EI
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