Assessment 4 Instructions: Production Process and Flow Costs

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Problem 1

BUS-FPX4061 - Managerial Accounting Principles
Assessment 4: Production Process and Flow Costs Worksheet
Problem 1 Input values
Solve the given problem based on the following information.
Company name Jordan
Jordan Company's inventory records indicate the following information: Date 31-May
Jordan Company Inventories (as of May 31) Jordan Company Inventories (as of May 31)
Inventory Beginning Inventory ($) Ending Inventory ($) Inventory Beginning Inventory ($) Ending Inventory ($)
Raw materials 72,000 110,000 Raw materials 72,000 110,000
Goods in process 156,000 250,000 Goods in process 156,000 250,000
Finished goods 160,000 198,000 Finished goods 160,000 198,000
Production activities for May (in $) Production activities for May (in $)
Raw materials (credit purchases) 200,000 Raw materials (credit purchases) 200,000 TRUE
Company payroll cost (cash) 400,000 Company payroll cost (cash) 400,000 TRUE
Miscellaneous overhead cost (other accounts credited) 170,500 Miscellaneous overhead cost (other accounts credited) 170,500
Materials Direct 21500 120,000 Materials Direct 120,000
Indirect 46750 42,000 Indirect 42,000
Labor Direct 15500 350,000 Labor Direct 350,000
Indirect 176000 50,000 Indirect 50,000
Overhead rate as a percent of direct labor 75% Overhead rate as a percent of direct labor 75%
Sales on credit 0.55 1,000,000 Sales on credit 1,000,000
750000
Compute the cost of goods transferred from production to finished goods,
and compute the cost of goods sold.
Cost of Goods Transferred and Cost of Goods Sold

Problem 2

Problem 2 Input values
Solve the given problem based on the following information.
Company name Jordan
Jordan Company's inventory records indicate the following information: Date 31-May
Jordan Company Inventories (as of May 31) Jordan Company Inventories (as of May 31)
Inventory Beginning Inventory ($) Ending Inventory ($) Inventory Beginning Inventory ($) Ending Inventory ($)
Raw materials 57,600 88,000 Raw materials 57,600 88,000
Goods in process 124,800 200,000 Goods in process 124,800 200,000
Finished goods 128,000 158,400 Finished goods 128,000 158,400
Production activities for May (in $) Production activities for May (in $)
Raw materials (credit purchases) 160,000 Raw materials (credit purchases) 160,000 TRUE
Company payroll cost (cash) 320,000 Company payroll cost (cash) 320,000 TRUE
Miscellaneous overhead cost (other accounts credited) 136,400 Miscellaneous overhead cost (other accounts credited) 136,400
Materials Direct 21500 96,000 Materials Direct 96,000
Indirect 46750 33,600 Indirect 33,600
Labor Direct 15500 280,000 Labor Direct 280,000
Indirect 176000 40,000 Indirect 40,000
Overhead rate as a percent of direct labor 75% Overhead rate as a percent of direct labor 75%
Sales on credit 0.55 800,000 Sales on credit 800,000
750000
Record production activities for May 31 in the Summary Journal Entries table below.
Summary Journal Entries
A.
May 31 Raw Materials Inventory
B.
May 31 Goods in Process Inventory
C.
May 31 Factory Overhead
D.
May 31 Factory Payroll
E.
May 31 Goods in Process Inventory
F.
May 31 Factory Overhead
G.
May 31 Factory Overhead
H.
May 31 Goods in Process Inventory
I.
May 31 Finished Goods Inventory
J.
May 31 Accounts Receivable
May 31
Finished Goods Inventory