Managerial Accounting Quiz 1 Essay

Custom Student Mr. Teacher ENG 1001-04 24 April 2016

Managerial Accounting Quiz 1

Chapters 1 and 2
10 Points

1. Complete the answer sheet below by placing an “X” under each heading that identifies the cost involved. The “Xs” can be placed under more than one heading for a single cost. (5 Points)

Variable Cost
Fixed Cost
Direct Materials
Direct Labor
Manufactu
ring Overhead
Period Cost
Materials costs
X

X

Production line workers wages
X

X

Production Equipment rental
X

X
Factory Building depreciation

X

X

Advertising costs

X

X

2. A partial listing of costs incurred at Rust Corporation during August appears below:

Purchases of raw materials……… $ 135,000

Direct labor……… 73,000

Factory Utilities………………………………………………. 11,000 Sales Commissions…………………………………………… 69,000 Administrative Salaries……………………………………….. 101,000 Indirect Labor………………………………………………… 89,000 Depreciation of Production Equipment………………………. 18,000 Indirect Materials……………………………………………… 10,000 Depreciation of Office Copy Machine……………………….. 5,000

Raw materials inventory, beginning……… 97,000

Raw materials inventory, ending……… 84,000

Work in process inventory, beginning……… 39,000

Work in process inventory, ending……… 52,000

Finished goods inventory, beginning……… 106,000

Finished goods inventory, ending……… 71,000

a. Prepare a Schedule of Cost of Goods Manufactured in good form. (3 Points)

Direct Materials:
Beginning raw materials inventory: $97,000
Add: Purchase of raw materials 135,000 Raw materials available for use 232,000
Deduct: Ending raw materials inventory 84,000
Raw materials used in production $148,000

Direct Labor: 73,000

Manufacturing Overhead: 118,000

Total manufacturing cost: 339,000
Add: Beginning work in process inventory 39,000
378,000

Deduct: Ending work in process inventory 52,000
Cost of goods manufactured $326,000

b. Compute the Cost of Goods Sold. (2 Points)

Finished goods inventory, beginning$106,000
Add: Cost of goods manufactured 326,000

Goods available for sale 432,000
Deduct: Finished goods inventory, ending 71,000

Cost of goods sold $361,000

Managerial Acctg Quiz 2 – Fall 2012 NAME__ _______________________

Chapters 3 and 4
10 Points

1. Pence Company is a manufacturing firm that uses job-order costing. The
company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 44,000 machine hours and would incur $176,000 in manufacturing overhead cost. During the year the following actual costs and hours were incurred:

Job A Job B Job C Job D Direct Materials$ 135,000 $ 129,000 $ 98,000 $ 103,000 Direct Labor $ 80,000 $ 85,000 $ 63,000 $ 68,000 Machine Hours 12,000 13,000 8,000 14,000 Number of Units 50 35 60

Indirect Materials used: $ 34,000
Indirect Labor: $ 63,000
Selling Costs: $134,000
Factory Utility Costs: $ 14,000
Factory Depreciation: $114,000
Administrative Salaries $157,000

Required: (5 points)

a. Compute the predetermined overhead rate
176000/44000= 4.00

b. Compute the amount of overhead applied to each job.
A.12000*4= 48000 B. 13000*4= 52000 C. 8000*4= 32000 D. 14000*4= 56000

c. Assuming that Jobs A, B, and D were completed during the year, compute the total cost charged to each job and the unit cost of the product produced.

A.5660
B.8543
D. 3983

d. Compute the balance in Work In Process at the end of the year. 161,000

e. Compute the amount of overhead under or overapplied.
176000-161000= 15000

f. Assuming the amount is not material, write the journal entry required to close the manufacturing overhead account at the end of the year. Work in Process 161,000
Manufacturing Overhead161,000

2. Elton Company uses the weighted-average method in its process costing system. The company adds materials at the beginning of the process in Department M. Conversion costs were 75% complete with respect to the 4,000 units in work in process at May 1 and 50% complete with respect to the 6,000 units in work in process at May 31. During May, 12,000 units were completed and transferred to the next department. An analysis of the costs relating to work in process at May 1 and to production activity for May follows:

Materials
Conversion

Work in process 5/1
$26,200
$19,370

Costs added during May
$26,900
$29,380

Required:

Using the weighted-average method, determine the Equivalent Units of Production for Materials and Conversion Costs, the Cost per Equivalent Unit
for Material and Conversion Cost, and the total product cost per Equivalent Unit. (5 Points)

Equivalent units of production
Materials Conversion Transferred to next department…………………….. 12,000 12,000 Ending work in process (materials: 6,000 units

× 100% complete; conversion: 6,000 units ×
50% complete)……………………………………….. 6,000 3,000 Equivalent units of production……………………… 18,000 15,000 Cost per Equivalent Unit

Materials Conversion Total
Cost of beginning work in process……………….. 26,200 19,370 Cost added during the period……………………….. 26,900 29,380 Total cost (a)……………………………………………… 53,100 48,750 Equivalent units of production (b)………………… 18,000 15,000 Cost per equivalent unit, (a) ÷ (b)…………………. 2.95 3.25 Total: $6.20

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  • University/College: University of California

  • Type of paper: Thesis/Dissertation Chapter

  • Date: 24 April 2016

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