ACCT 210 Lecture 1: Lab+1+-+Chpt+1++2+student

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amethystcheetah234

11 Dec 2017

School

University of Arizona

Department

Accounting

Course

ACCT 210

Professor

Heather Altman

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Document Summary

Lab assignment 1 chapters 1 & 2: for each item listed below, indicate in the space to the left whether the item would be considered a product cost or a period cost for a manufacturing company. ____ 10. direct materials used: spongebob meat packing reports the following costs and expenses for march. Manufacturing overhead costs: product costs, period costs. Lab assignment 1 chapters 1 & 2: use the following information for parts a through d: Lab assignment 1 chapters 1 & 2: please use the following information to answer parts a & b. Estimated factory overhead budgeted to be incurred during 2016. Estimated number of machine hours budgeted to be used during 2016. Actual number of machine hours used during 2016. This amount is based on an estimated overhead of ,000 and 2,000 estimated direct labor hours. In addition, selling, general, and administrative (sg&a) costs for the period totaled ,000. Total units produced during the period were 1,650,000.

Related Questions

Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno's monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,000 Insurance on factory building 1,500 Raw materials (plastics, polystyrene, etc.) 75,000 Utility costs for factory 900 Supplies for general office 300 Wages for assembly line workers 58,000 Depreciation on office equipment 800 Miscellaneous materials (glue, thread, etc.) 1,100 Factory manager's salary 5,700 Property taxes on factory building 400 Advertising for helmets 14,000 Sales commissions 10,000 Depreciation on factory building 1,500 Margin check figures provide key numbers to confirm that you are on the right track. Instructions (a) Prepare an answer sheet with the following column headings. Product Costs Cost Item Direct Materials Direct Labor Manufacturing Overhead Period Costs Enter each cost item on your answer sheet, placing the dollar amount under the appropriate headings. Total the dollar amounts in each of the columns. DM $75,000 DL $58,000 MO $22,100 PC $25,100 (b) Compute the cost to produce one helmet. P1-2A Classify manufacturing costs into different categories and compute the unit cost. (LO 2), AP Bell Company, a manufacturer of audio systems, started its production in October 2017. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment factory. Raw materials cost for an audio system will total $74 per unit. Workers on the production lines are on average paid $12 per hour. An audio system usually takes 5 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $4,900 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is $3,000. Factory janitorial costs are $1,300 monthly. Advertising costs for the audio system will be $9,500 per month. The factory building depreciation expense is $7,800 per year. Property taxes on the factory building will be $9,000 per year. Instructions (a) Prepare an answer sheet with the following column headings. Product Costs Cost Item Direct Materials Direct Labor Manufacturing Overhead Period Costs Assuming that Bell manufactures, on average, 1,500 audio systems per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns. DM $111,00 DL $ 90,000 MO $ 18,100 PC $ 9,500 (b) Compute the cost to produce one audio system.

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PROBLEM 2-25 Cost Classification and Cost Behavior [LO2-1, LO2-2, LO2-3, LO2-4] The Dorilane Company specializes in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the company has ample orders to keep produc- tion going at its full capacity of 2,000 sets per year. Annual cost data at full capacity follow: Direct labor Advertising ...... Factory supervision ..... Property taxes, factory building Sales commissions. Insurance, factory ...... Depreciation, administrative office equipment. Lease cost, factory equipment ...... Indirect materials, factory .. Depreciation, factory building Administrative office supplies (billing) Administrative office salaries. Direct materials used (wood, bolts, etc.) ..... Utilities, factory ....... $118.000 $50,000 $40,000 $3,500 $80,000 $2,500 $4,000 $12,000 $6,000 $10,000 $3,000 $60,000 $94,000 $20,000 Required: 1. Prepare an answer sheet with the column headings shown below. Enter each cost item on your answer sheet, placing the dollar amount under the appropriate headings. As examples, this has been done already for the first two items in the list above. Note that each cost item is classified in two ways: first, as variable or fixed with respect to the number of units produced and sold; and second, as a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as either direct or indirect as shown.) Cost Behavior Variable Fixed Period (Selling or Administrative) Cost Product Cost Direct Indirect Cost Item $118,000 $118,000 Direct labor .......... Advertising ..... $50,000 $50,000 *To units of product. 2. Total the dollar amounts in each of the columns in (1) above. Compute the average product cost of one patio set. 3. 4. Assume that production drops to only 1,000 sets annually. Would you expect the average product cost per set to increase, decrease, or remain unchanged? Explain. No computations are necessary. Refer to the original data. The president's brother-in-law has considered making himself a patio set and has priced the necessary materials at a building supply store. The brother-in-law has asked the president if he could purchase a patio set from the Dorilane Company "at cost," and the president agreed to let him do so. a. Would you expect any disagreement between the two men over the price the brother- in-law should pay? Explain. What price does the president probably have in mind? The brother-in-law? b. Because the company is operating at full capacity, what cost term used in the chapter might be justification for the president to charge the full, regular price to the brother-in- law and still be selling "at cost"?

All questions have to do with cost accounting systems,more in particular, process cost systems.

Complete each of the following statements by writing theappropriate words or amounts in the answers blanks.

1-5. Identify whether the process cost or job order cost systemwould be more appropriate for each of the followingbusinesses:
1. accounting firm 1. ____
2. breakfast cereal manufacturer 2. ____
3. ship construction 3. ____
4. pharmaceuticals company 4. ____
5. computer chip manufacturer 5. ____

6. The number of units that could have been completed within agiven accounting period with respect to direct materials andconversion costs is the 6. ____

7. Direct labor and factory overhead are referred to as 7.____

8â9. Oslo Manufacturing incurred $72,000 of direct materialscosts, direct labor costs of $24,500, and factory overhead of$20,500. If 1,000 direct materials equivalent units and 900conversion equivalent units were manufactured, then:
8. The equivalent unit cost for direct materials is 8. $____
9. The equivalent unit cost for conversion is 9. $____

10. The periodic report prepared for each processing department,summarizing (1) the units for which the department is responsibleand their disposition and (2) the costs charged the department andtheir allocation, is termed the 10. ____

11. The method of inventory costing that assumes the unitproduct costs should be determined separately for each period inthe order in which the costs were incurred is 11. ____

12â15. In a process cost system, the cost of goods completed andthe ending inventory valuation are determined by using thefollowing four steps:
12. ____
13. ____
14. ____
15. ____

16â17. The transferred costs of completed production inDepartment A using a process cost system include:
16. ____
17. ____

18â20. The three categories of units to be assigned cost for anaccounting period in a process cost system are:
18. ____
19. ____
20. ____

21â24. Department W had 8,000 units in work in process that were30% converted at the beginning of the period at a cost of $16,400.During the period, 15,000 units of direct materials were added at acost of $48,000, 16,000 units were completed, and 7,000 units were40% completed. The first-in, first-out cost method is used and allmaterials are added at the beginning of the process. Direct laborwas $30,000, and factory overhead was $54,000 during theperiod.
21. The number of equivalent units of conversion for the period was21. ____
22. The total conversion costs for the period were 22. $____
23. The conversion cost of the units started and completed duringthe period was 23. $____
24. The conversion cost of the 7,000 units in process at the end ofthe period was 24. $____

Indicate the titles of the accounts to be debited and creditedin recording the selected transactions given below by inserting theletter or letters of the account titles listed in the appropriatecolumns. (Do not record the amounts.)

ACCOUNTS

A. Accounts Payable E. FactoryOverheadâDepartment A I. Sales

B. Accounts Receivable F.Factory OverheadâDepartment B J. Wages Payable

C. Cash G. Finished GoodsK. Work in ProcessâDepartment A

D. Cost of Goods Sold H.Materials L. Work inProcessâDepartment B


TRANSACTIONS	Debit		Credit
0. Paid cash for wages owed, $47,000.............................................................	J	0. ____	C	0. ____
1-2. Materials requisitioned for use in Department A,$36,000, of which $31,500 entered directly into the product.....................................................		1. ____		2. ____
3-4. Labor in Department A, $13,000, was used directlyin the manufacture of the product.....................................................................................................		3. ____		4. ____
5-6. Factory overhead applied to production inDepartment A, $6 per machine hour.....................................................................................................		5. ____		6. ____
7-8. Goods finished in Department A and transferred toDepartment B, $79,000...............................................................................................................		7. ____		8. ____
9-10. Goodsfinished in Department B and transferred to finished goods,$114,000.............................................................................................................		9. ____		10. ____
11-12. Cost of finishedgoods sold, $126,374.........................................................		11. ____		12. ____

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ACCT 210 Lecture 1: Lab+1+-+Chpt+1++2+student

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