4 Accounting Problems

dyztpexiau

Main

Home >Homework Answsers >Business & Finance homework help >Accounting homework help

PROBLEM 1

Millar Company has the following cost records for May 2016

http://edugen.wiley.com/edugen/courses/crs2496/common/art/pixel.gif

Indirect factory labor	$ 10,000	Advertising Expense	$ 8,000
Direct materials used	13,000	Depreciation, factory equipment	4,200
Work in process, 5/1/15	5,000	Direct labor	11,000
Work in process, 5/31/15	6,500	Maintenance, office equipment	2,000

Depreciation, office equipment	1,000	Indirect materials	1,200
Sales Commission	10,000	Office Manager Salary	4,000

http://edugen.wiley.com/edugen/courses/crs2496/common/art/pixel.gif

Instructions

http://edugen.wiley.com/edugen/courses/crs2496/common/art/pixel.gif

Prepare a cost of goods manufactured schedule for May 2016

MILLAR COMPANY Cost of Goods Manufactured Schedule For the Year Ended May 31, 2016

Description: http://edugen.wiley.com/edugen/courses/crs2496/common/art/pixel.gif

PROBLEM 2

Mottle Inc. fixed costs are expected to be $80,000 and variable costs are expected to be $20 per product. Sales price is $40 per product and targeted net income is $300,000

Instructions

a. Determine the required sales in units and dollars to break even.

b. Determine the required sales in units to achieve targeted net income of $300,000.

PROBLEM 3

Marvin Company estimates that annual manufacturing overhead costs will be $900,000. Estimated annual operating activity bases are: direct labor cost $450,000, direct labor hours 300,000, and machine hours 150,000.

Compute the predetermined overhead rate using (i) direct labor cost as the activity base (ii) direct labor hours as the activity base and (iii) machine hours as the activity base.
If Job 101 has 60,000 direct labor hours, compute the manufacturing overhead that it should be assigned using the predetermined overhead rate computed in question a. above.
If Job 102 has 20,000 machine hours, compute the manufacturing overhead that it should be assigned using the predetermined overhead rate computed in question a. above.

PROBLEM 4

Blake Johnson has the following cost and production data for the Mixing Department for December 2013

Cost data:

Beginning work in process inventory, December 1

Direct Materials $30,000

Conversion Cost $ 6,000

$36,000

Cost incurred during production in December

Direct Materials $390,000

Conversion costs $122,000

$512,000

Total Costs $548,000