Managerial Accounting

Topics: Costs, Variable cost, Total cost Pages: 6 (1061 words) Published: January 23, 2015
CHAPTER 1 (Introduction to Management Accounting)

P-1-4A
The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2014.

Raw Materials

Factory Insurance

$ 4600
Inventory 7/1/13

$ 48000

Factory Machinery

Raw Materials

Depreciation

16,000
Inventory 6/30/14

39,600

Factory Utilities

27,600
Finished Goods

Office Utilities Expenses

8,650
Inventory 7/1/13

96,000

Sales Revenue

534,000
Finished Goods

Sales Discounts

4,200
Inventory 6/30/14

75,900

Plant Manager’s Salary

58,000
Works in Process

Factory Property Taxes

9,600
Inventory 7/1/13

19,800

Factory Repairs

1,400
Work in Process

Raw materials Purchases

96,400
Inventory 6/30/14

18,600

Cash

32,000
Direct Labor

139,250

Indirect Labor

24,460

Account Receivable

27,000

Instructions
Prepare a cost of goods manufactured schedule (Assume all raw materials used were direct material)

1) Prepare an income statement through gross profit.

2) Prepare the current assets section of the balance sheet at June 30, 2014.

CHAPTER 2 (Job Order Costing)

P2-4A
Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department D, direct labor hours in Department E, and machine hours in Department K.In establishing the predetermined overhead rates for 2014, the following estimates were made for the year.

Department

D

E

K
Manufacturing overhead

$1,200,000

$1,500,000

$900,000
Direct labor costs

$1,500,000

$1,250,000

$450,000
Direct labor hours

100,000

125,000

40,000
Machine hours

400,000

500,000

120,000

During January, the job cost sheets showed the following costs and production data.

Department

D

E

K
Direct materials used

$140,000

$126,000

$78,000
Direct labor costs

$120,000

$110,000

$37,500
Manufacturing overhead incurred

$99,000

$124,000

$79,000
Direct labor hours
8,000

11,000

3,500
Machine hours
34,000

45,000

10,400

Instructions
a) Compute the predetermined overhead rate for each department. b) Compute the total manufacturing costs assigned to jobs in January in each department. c) Compute the under-or over applied overhead for each department at January 31.

CHAPTER 3 (Process Costing)

P3-2A
Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging .In the Molding Department, the urethane, rubber, plastic and other materials are molded into bowling balls. In the Packaging Department the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2014 are presented below.

Production Data

June
Beginning work in process units

-0-
Units started into production

22,000
Ending work in process units

2,000
Percent complete –ending inventory

40%

Cost Data

Materials

$ 198000
Labor

53,600
Overhead

112,800
Total

$ 364, 4000

Instructions
a) Prepared a schedule showing physical units of production
b) Determine the equivalent units of production for materials and conversion costs. c) Compute the unit costs of production.
d) Determine the costs to be assigned to the unit transferred out and in process for June. e) Prepare a production cost...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Introduction to Managerial Accounting Midterm Study Guide Essay
  • Managerial Accounting and the Business Environment Essay
  • Managerial Accounting Theory Essay
  • Cost Accounting Text review Essay
  • Essay about Managerial Accounting
  • Managerial Accounting Essay
  • Essay on Managerial Accounting
  • Managerial Accounting Basic Cost Concept Essay

Become a StudyMode Member

Sign Up - It's Free