Loose-Leaf for Managerial Accounting: Creating Value in a Dynamic Business Environment
11th Edition
ISBN: 9781259727016
Author: HILTON, Ronald, PLATT, David
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 3, Problem 30E
Crunchem Cereal Company incurred the following actual costs during 20x1.
The firm’s predetermined overhead rate is 210 percent of direct-labor cost. The January 1 inventory balances were as follows:
Each of these inventory balances was 10 percent higher at the end of the year.
Required:
- 1. Prepare a schedule of cost of goods manufactured for 20x1.
- 2. What was the cost of goods sold for the year?
- 3. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change: direct material used amounted to $281,000 and raw-material inventory on December 31 was $28,000.
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Students have asked these similar questions
The Bradley Corporation produces a product with the following costs as of July 1, 20X1:
Material
Labor
Overhead
$ 4 per unit
2 per unit
2 per unit
Beginning inventory at these costs on July 1 was 3,150 units. From July 1 to December 1, 20X1, Bradley Corporation produced 12,300
units. These units had a material cost of $4, labor of $6, and overhead of $3 per unit. Bradley uses LIFO inventory accounting.
a. Assuming that Bradley Corporation sold 13,600 units during the last six months of the year at $18 each, what is its gross profit?
Answer is complete but not entirely correct.
Gross profit
$
74,800x
b. What is the value of ending inventory?
Answer is complete but not entirely correct.
Ending inventory
S
12,800 x
The following data was taken from EOQ Swab Company in July:
Beginning inventory - 0
Units transferred in during month - 4,700
Units transferred to Finished Goods during the month - 4,300
Ending work in process (25% complete as to labor) - 400
Labor cost incurred for the month - P14,080
1. What is the equivalent production for labor during the month?
2. What is the labor cost per equivalent unit?
3. What is the labor cost in the ending work in process?
Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods
inventory account at the beginning of the month was $50,400 and at the end of the month was $38,400.
The cost of goods manufactured for the month was $291,000. The actual manufacturing overhead cost
incurred was $165,400 and the manufacturing overhead cost applied to Work in Process was $154,000.
The adjusted cost of goods sold that would appear on the income statement for July is:
$279,000
$303,000
$291,600
$314,400
Chapter 3 Solutions
Loose-Leaf for Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 3 - List and explain four purposes of product costing.Ch. 3 - Explain the difference between job-order and...Ch. 3 - How is the concept of product costing applied in...Ch. 3 - What are the purposes of the following documents:...Ch. 3 - Why is manufacturing overhead applied to products...Ch. 3 - Explain the benefits of using a predetermined...Ch. 3 - Describe one advantage and one disadvantage of...Ch. 3 - Describe an important cost-benefit issue involving...Ch. 3 - Explain the difference between actual and normal...Ch. 3 - When a single, volume-based cost driver (or...
Ch. 3 - Prob. 11RQCh. 3 - Describe the process of two-stage cost allocation...Ch. 3 - Define each of the following terms, and explain...Ch. 3 - Describe how job-order costing concepts are used...Ch. 3 - What is meant by the term cost driver? What is a...Ch. 3 - Describe the flow of costs through a...Ch. 3 - Give an example of how a hospital, such as the...Ch. 3 - Why are some manufacturing firms switching from...Ch. 3 - What is the cause of over applied or under applied...Ch. 3 - Briefly describe two ways of closing out over...Ch. 3 - Describe how a large retailer such as Lowes would...Ch. 3 - Prob. 22RQCh. 3 - For each of the following companies, indicate...Ch. 3 - The controller for Tender Bird Poultry, Inc....Ch. 3 - Finley Educational Products started and finished...Ch. 3 - Bodin Company manufactures finger splints for kids...Ch. 3 - McAllister, Inc. employs a normal costing system....Ch. 3 - Garrett Toy Company incurred the following costs...Ch. 3 - Crunchem Cereal Company incurred the following...Ch. 3 - Reimel Furniture Company, Inc. incurred the...Ch. 3 - Selected data concerning the past years operations...Ch. 3 - Sweet Tooth Confectionary incurred 157,000 of...Ch. 3 - The following information pertains to Trenton...Ch. 3 - The following data pertain to the Oneida...Ch. 3 - Refer to the data for the preceding exercise for...Ch. 3 - Design Arts Associates is an interior decorating...Ch. 3 - Suppose you are the controller for a company that...Ch. 3 - Laramie Leatherworks, which manufactures saddles...Ch. 3 - Refer to Exhibit 312, which portrays the three...Ch. 3 - Refer to the illustration of overhead application...Ch. 3 - The following data refer to Twisto Pretzel Company...Ch. 3 - Burlington Clock Works manufactures fine,...Ch. 3 - Perfecto Pizza Company produces microwavable...Ch. 3 - Stellar Sound, Inc. which uses a job-order costing...Ch. 3 - Finlon Upholstery, Inc. uses a job-order costing...Ch. 3 - JLR Enterprises provides consulting services...Ch. 3 - Garcia, Inc. uses a job-order costing system for...Ch. 3 - MarineCo, Inc. manufactures outboard motors and an...Ch. 3 - The following data refers to Huron Corporation for...Ch. 3 - Refer to the schedule of cost of goods...Ch. 3 - Marco Polo Map Companys cost of goods sold for...Ch. 3 - Midnight Sun Apparel Company uses normal costing,...Ch. 3 - Marc Jackson has recently been hired as a cost...Ch. 3 - Troy Electronics Company calculates its...Ch. 3 - Tiana Shar, the controller for Bondi Furniture...Ch. 3 - Scholastic Brass Corporation manufactures brass...Ch. 3 - Refer to the preceding problem regarding...Ch. 3 - Prob. 59PCh. 3 - TeleTech Corporation manufactures two different...Ch. 3 - CompuFurn, Inc. manufactures furniture for...Ch. 3 - FiberCom, Inc., a manufacturer of fiber optic...
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