Gen Combo Fundamentals Of Cost Accounting; Connect Access Card
6th Edition
ISBN: 9781260848700
Author: William N. Lanen Professor, Shannon Anderson Associate Professor, Michael W Maher
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 7, Problem 54P
Finding Missing Data
A new computer virus (AcctBGone) destroyed most of the company records at BackupsRntUs. The computer experts at the company could recover only a few fragments of the company’s factory ledger for March as follows:
Further investigation and reconstruction from other sources yielded the following additional information:
- The controller remembers clearly that actual
manufacturing overhead costs are recorded at $18 per direct labor-hour. (The company assigns actual overhead to Work-in-Process Inventory.) - The production superintendent’s cost sheets showed only one job in Work-in-Process Inventory on March 31. Materials of $15,600 had been added to the job, and 300 direct labor-hours had been expended at $36 per hour.
- The Accounts Payable are for direct materials purchases only, according to the accounts payable clerk. He clearly remembers that the balance in the account was $36,000 on March 1. An analysis of canceled checks (kept in the treasurer’s office) shows that payments of $252,000 were made to suppliers during the month.
- The payroll ledger shows that 5,200 direct labor-hours were recorded for the month. The employment department has verified that there are no variations in pay rates among employees (this infuriated Steve Fung, who believed that his services were underpaid).
- Records maintained in the finished goods warehouse indicate that the finished goods inventory totaled $108,000 on March 1.
- The cost of goods manufactured in March was $564,000.
Required
Determine the following amounts:
- a. Work-in-process inventory, March 31.
- b. Direct materials purchased during March.
- c. Actual manufacturing overhead incurred during March.
- d. Cost of goods sold for March.
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GigaBite Company's computer system recently crashed, erasing much of the company's financial data. The following accounting information was discovered soon afterwards on the Chief Financial Officer's back-up computer data.
Cost of Goods Sold
$ 384,000
Work-in-Process Inventory, Beginning
31,000
Work-in-Process Inventory, Ending
41,200
Selling and Administrative Expense
51,800
Finished Goods Inventory, Ending
15,600
Finished Goods Inventory, Beginning
?
Direct Materials Purchased
175,400
Factory Overhead Applied
118,000
Operating Income
24,200
Direct Materials Inventory, Beginning
19,200
Direct Materials Inventory, Ending
6,200
Cost of Goods Manufactured
344,000
Direct Labor
58,000
The Chief Financial Officer of GigaBite Company has asked you to recalculate the following accounts and report to him by week's end.
What should be the amount of direct materials available for use?
Multiple Choice
$118,000.
$188,400.
$194,600.…
GigaBite Company's computer system recently crashed, erasing much of the company's financial data. The following accounting information was discovered soon afterwards on the Chief Financial Officer's back-up computer data.
Cost of Goods Sold
$ 384,000
Work-in-Process Inventory, Beginning
31,000
Work-in-Process Inventory, Ending
41,200
Selling and Administrative Expense
51,800
Finished Goods Inventory, Ending
15,600
Finished Goods Inventory, Beginning
?
Direct Materials Purchased
175,400
Factory Overhead Applied
118,000
Operating Income
24,200
Direct Materials Inventory, Beginning
19,200
Direct Materials Inventory, Ending
6,200
Cost of Goods Manufactured
344,000
Direct Labor
58,000
The Chief Financial Officer of GigaBite Company has asked you to recalculate the following accounts and report to him by week's end.
What should be the amount of direct materials available for use?
A series of computer and backup system failures caused the loss of most of the company records at Stotter, Incorporated. Information technology consultants for the company could recover only a few fragments of the company’s factory ledger for July as follows:
Materials Inventory
Debit Credit
Beginning Balance (7/1) 144,000
236,000
Work-in-Process Inventory
Debit Credit
Beginning Balance (7/1) 23,400
Finished Goods Inventory
Debit Credit
Ending Balance (7/31) 95,100
2,310
Cost of Goods Sold
Debit Credit
Manufacturing Overhead Control
Debit Credit
202,000
Accounts Payable (Materials)
Debit Credit
185,700
39,600 Ending Balance (7/31)
Further investigation and reconstruction from other sources yielded the following additional information:
Based on records for January through June, overhead is applied at the rate of $24 per direct labor-hour.
The production superintendent’s cost sheets showed only one job in Work-in-Process Inventory on…
Chapter 7 Solutions
Gen Combo Fundamentals Of Cost Accounting; Connect Access Card
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