🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
HomeStudy Guides420,000US230,000

ACCY 202 Study Guide - Quiz Guide: Finished Good, Cost Driver, Little Foot

92 views7 pages
blushbee713
5 Dec 2017
School
UM
Department
Patterson School of Accountancy
Course
ACCY 202
Professor
Barton

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

Exam 2 practice problems: information for little foot co. as of december 31 is as follows: Calculate cost of goods manufactured for heist, inc. as of december 31. (support all calculations with descriptions for partial credit and clearly indicate final answer with circle or box. ) Exam 2 practice problems: the predetermined overhead allocation rate for dublin co. is based on estimated direct labor costs of ,000 and estimated factory overhead of ,750. Exam 2 practice problems: refer to the following information about the assembly department in dasher. ,500: assume that the assembly department of dasher luxury imports uses the weighted-average method and process costing. Please note that there is a part b to this problem on the next page. ) Total equivalent units of production (eups) - conversion. Total costs of work in process: prepare the journal entry as of october 31 to transfer completed units to.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers

Related Documents

ACCY 202
Final Exam
Study Guide
ACCY 202 Study Guide - Quiz Guide: Total Absorption Costing, Income Statement, Variable Cost
blushbee713
ADMS 2510
Final Exam
Study Guide
ADMS 2510 Study Guide - Midterm Guide: Customer Service, Profit Margin
pinkcattle778
ACCT 202
Final Exam
Study Guide
ACCT 202 Study Guide - Final Guide: Gross Profit, Earnings Before Interest And Taxes, Income Statement
blushllama275

Related Questions

Problem 18-3A Schedule of cost of goods manufactured and income statement; inventory analysis LO P2, A1

[The following information applies to the questions displayed below.]

The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company.

Advertising expense $ 34,300 Direct labor $ 674,200
Depreciation expense—Office equipment 9,800 Income taxes expense 289,900
Depreciation expense—Selling equipment 9,800 Indirect labor 56,000
Depreciation expense—Factory equipment 35,300 Miscellaneous production costs 10,900
Factory supervision 131,500 Office salaries expense 74,000
Factory supplies used 8,400 Raw materials purchases 930,000
Factory utilities 40,000 Rent expense—Office space 25,000
Inventories Rent expense—Selling space 29,200
Raw materials, December 31, 2016 167,600 Rent expense—Factory building 82,400
Raw materials, December 31, 2017 185,000 Maintenance expense—Factory equipment 38,400
Work in process, December 31, 2016 17,000 Sales 4,466,700
Work in process, December 31, 2017 23,200 Sales salaries expense 396,600
Finished goods, December 31, 2016 162,900
Finished goods, December 31, 2017 141,200

Problem 18-3A Part 2

2. Prepare the company’s 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.

*THE BUSINESS CASE*

Armstrong Helmet Company manufactures a unique model of bicyclehelmet. The company began operations December 1, 2013. Itsaccountant quit the second week of operations, and the company issearching for a replacement. The company has decided to test theknowledge and ability of all candidates interviewing for theposition. Each candidate will be provided with the informationbelow and then asked to prepare a series of reports, schedules,budgets, and recommendations based on that information. Theinformation provided to each candidate is as follows:

Cost Items and Account Balances:

Administrative salaries $15,500

Advertising for helmets $11,000

Cash, December 1 $0

Depreciation on factory building $1,500

Depreciation on office equipment $800

Insurance on factory building $1,500

Miscellaneous expenses—factory $1,000

Office supplies expense $300

Professional fees $500

Property taxes on factory building $400

Raw materials used $70,000

Rent on production equipment $6,000

Research and development $10,000

Sales commissions $40,000

Utility costs—factory $900

Wages—factory $70,000

Work in process, December 1 $0

Work in process, December 31 $0

Raw materials inventory, December 1 $0

Raw materials inventory, December 31 $0

Raw material purchases $70,000

Finished goods inventory, December 1 $0

Production and Sales Data:

Number of helmets produced $10,000

Expected sales in units for December ($40 unit sales price)$8,000

Expected sales in units for January 10,000

Desired ending inventory: 20% of next month's sales
Direct materials per finished unit: 1 kilogram

Direct materials cost: $7 per kilogram
Direct labor hours per unit: 0.35
Direct labor hourly rate: $20

Cash Flow Data:

Cash collections from customers: 75% in month of sale and 25%the following month.

Cash payments to suppliers: 75% in month of purchase and 25% thefollowing month.

Income tax rate: 45%.
Cost of proposed production equipment: $720,000.

Manufacturing overhead and selling and administrative costs arepaid as incurred. Desired ending cash balance: $30,000.

**INSTRUCTIONS!**

Using the data presented above, do the following...

2. Classify the costs as either variable or fixed costs.Assume there are no mixed costs. Enter the dollar amount of eachcosts in the appropriate column and toal each classification. usethe format show below. Assume that utility costs - factory costsare fixed.

Item Variable costs Fixed costs Total Costs

11. Prepare a flexible budget for manufacturing costs foractivity levels between 8,000 and 10,000 units, in 1,000-unitincrements.

12. Identify one potential cause of direct materials, directlabor and manufacturing overhead variances in the production of thehelment.

Susquehanna Corp. is a manufacturer of earrings. You have been hired as a new management trainee of the company. In the past, the company has done very little in budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming year. You have gathered the beginning balance sheet and the necessary assumptions for you to create the budget. The company has an agreement with a bank that allows the company to borrow in increments of $10,000 at the beginning of each quarter. The interest is 2% per quarter and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company will pay the bank all of the accumulated interest for the quarter on the loan and as much of the loan as possible (in increments of $10,000), while still retaining at least $40,000 in cash. Insurance for the whole year will be paid in January. Prepare the master budget for the year 2017.
0
Earrings Corp. Earrings Corp.
Balance Sheet Budgeting Assumptions
December 31, 2016
2017 2018
Assets Sales Budget Assumptions Same for all quarters Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2
Current assets: Budgeted sales in pairs of earrings 105,000 50,000 60,000 100,000 135,000 65,000
Cash $ 48,000 Selling price per pair $ 23.50
Accounts receivable 224,000 Percentage of sales collected in the quarter of sale 60%
Raw materials inventory (240,000 grams of silver) 120,000 Percentage of sales collected in the quarter after sale 40%
Finished goods inventory (48,000 pairs of earrings) 480,000
Total current assets $ 872,000 Production Budget Assumptions
Plant and equipment: Percentage of next quarter's sales needed in ending finished goods inventory 40%
Land 50,000
Buildings and equipment 650,000 Direct Materials Budget Assumptions
Accumulated depreciation (330,000) Grams of silver per pair of earring 10
Total Plant and equipment, net 370,000 Cost per gram of silver $ 0.50
Total assets $ 1,242,000 Percentage of next quarter's production needs in ending inventory 20%
Percentage of purchases paid in the quarter of purchase 55%
Liabilities and Stockholders' Equity Percentage of purchases paid in the quarter after purchase 45%
Current liabilities:
Accounts payable $ 93,000 Direct Labor Budget Assumptions
Stockholders' equity: Direct labor-hours required per pair 0.20
Common stock $ 700,000 Direct labor cost per hour $ 12.00
Retained earnings 449,000
Total stockholders' equity 1,149,000 Manufacturing Overhead Budget Assumptions
Total liabilities and stockholders' equity $ 1,242,000 Variable manufacturing overhead per direct labor-hour $ 1.50
Fixed manufacturing overhead excluding depreciation per quarter $ 145,950
Depreciation on factory assets per quarter $ 25,000 $ 30,000 $ 32,000 $ 33,000
Selling and Administrative Expense Budget Assumptions
Variable selling and administrative expense per pair $ 2.80
Fixed selling and administrative expense:
Advertising expense per quarter $ 270,000
Executive salaries per quarter $ 105,000
Insurance expense per quarter $ 48,000 (the whole year's insurance will be paid in January)
Rent expense per quarter $ 240,000
Depreciation on non-factory assets per quarter $ 14,000 $ 16,000 $ 17,000 $ 18,000
Cash Budget Assumptions
Minimum cash balance $ 40,000
Equipment purchases $ 20,000 $ 40,000 $ 15,000 $ 10,000
Dividends per quarter $ 15,000
Interest rate per quarter 2%
Loans can be made and repaid in increments of $10,000
Earrings Corp.
Master Budget
For the Year Ended December 31, 2017
Sales Budget Quarter
1 2 3 4 Year
Budgeted unit sales (in pairs) ? ? ? ? ?
Selling price per unit ? ? ? ? ?
Total sales ? ? ? ? ?
Schedule of Expected Cash Collections
Beginning accounts receivable ? ?
First quarter sales ? ? ?
Second quarter sales ? ? ?
Third quarter sales ? ? ?
Fourth quarter sales ? ?
Total cash collections ? ? ? ? ?
Production Budget Quarter
1 2 3 4 Year
Budgeted unit sales ? ? ? ? ?
Add: Desired units of ending finished goods inventory ? ? ? ? ?
Total needs ? ? ? ? ?
Less: Units of beginning finshed goods inventory ? ? ? ? ?
Required production in units ? ? ? ? ?
Direct Materials Budget Quarter
1 2 3 4 Year
Required production in pairs ? ? ? ? ?
Units of raw materials needed per pair ? ? ? ? ?
Units of raw materials needed to meet production ? ? ? ? ?
Add desired units of ending raw materials inventory ? ? ? 214,000 ?
Total units of raw materials needed ? ? ? ? ?
Less units of beginning raw materials inventory ? ? ? ? ?
Units of raw materias to be purchased ? ? ? ? ?
Cost of raw materials per pound ? ? ? ? ?
Cost of raw materials to be purchased ? ? ? ? ?
Schedule of Expected Cash Disbursements for Purchases of Materials
Beginning accounts payable ? ?
First quarter purchases ? ? ?
Second quarter purchases ? ? ?
Third quarter purchases ? ? ?
Forth quarter purchases ? ?
Total cash disbursements for materials ? ? ? ? ?
Direct Labor Budget Quarter
1 2 3 4 Year
Required production in pairs ? ? ? ? ?
Direct labor-hours per pair ? ? ? ? ?
Total direct labor-hours needed ? ? ? ? ?
Direct labor cost per hour ? ? ? ? ?
Total direct labor cost ? ? ? ? ?
Manufacturing Overhead Budget Quarter
1 2 3 4 Year
Budgeted direct labor-hours ? ? ? ? ?
Variable manufacturing overhead rate ? ? ? ? ?
Variable manufacturing overhead ? ? ? ? ?
Fixed manufacturing overhead ? ? ? ? ?
Total manufacturing overhead ? ? ? ? ?
Less depreciation on factory assets ? ? ? ? ?
Cash disbursements for manufacturing overhead ? ? ? ? ?
Total manufacturing overhead ?
Budgeted direct labor-hours ?
Predetermined overhead rate for the year 2017 ?
Ending Finished Goods Inventory Budget (absorption costing basis)
Item Quantity Cost Total
Production cost per case:
Direct materials ? grams ? per gram ?
Direct labor ? hours ? per hour ?
Manufacturing overhead ? hours ? per hour ?
Unit product cost ?
Budgeted finished goods inventory:
Ending finished goods inventory in cases ?
Unit product cost ?
Ending finished goods inventory in dollars ?
Selling and Administrative Expense Budget Quarter
1 2 3 4 Year
Budgeted unit sales ? ? ? ? ?
Variable selling and administrative expense per pair ? ? ? ? ?
Total variable selling and administrative expense ? ? ? ? ?
Fixed selling and administrative expense per quarter:
Advertising ? ? ? ? ?
Executive salaries ? ? ? ? ?
Insurance ? ? ? ? ?
Rent ? ? ? ? ?
Depreciation on non-factory assets ? ? ? ? ?
Total fixed selling and administrative expense ? ? ? ? ?
Total selling and administrative expense ? ? ? ? ?
Adjustment for prepaid insurance #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Less depreciation on non-factory assets ? ? ? ? ?
Cash disbursements for selling and administrative expense ? ? ? ? ?
Cash Budget Quarter
1 2 3 4 Year
Beginning cash balance ? ? ? ? ?
Add cash receipts:
Collections from customers ? ? ? ? ?
Total cash available ? ? ? ? ?
Less cash disbursements:
Direct materials ? ? ? ? ?
Direct labor ? ? ? ? ?
Manufacturing overhead ? ? ? ? ?
Selling and administrative ? ? ? ? ?
Equipment purchases ? ? ? ? ?
Dividends ? ? ? ? ?
Total cash disbursements ? ? ? ? ?
Excess (deficiency) of cash available over disbursements ? ? ? ? ?
Financing:
Borrowings (at the beginnings of quarters) $ 50,000.00 $ - ?
Repayments (at end of the year) $ - ? ?
Interest $ (1,000.00) ? ?
Total financing $ 49,000.00 ? ? ? ?
Ending cash balance ? ? ? ? ?