AC2620 Project part 1
Skeeter10
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| familiarizes you with the ethical principles and standards the members of IMA follow. This will help you perform Task 1 of Project Part 1. -------------------------------------------------------- Title: Costing/Ethical Decisions In Project Part 1, you will evaluate a management ethical issue, perform a job-order costing problem, and perform a conversion costs problem outlined in the following tasks:
Task 1: Management Ethical Issue Shauna Miller is an accountant at Western Building Supplies. Recently, in the course of her normal processing of transactions and related documents, she noticed that two of her company’s top sales executives were taking the purchasing agents of important customers on lavish golf vacations to Hawaii. The average cost was over $6,000 per trip.
As a member of the IMA, does Shauna have any specific obligations related to her discovery?
What steps should she consider?
Task 2: Job-Order Process Costing Problem Lane Confectioners produces special orders of sugar candies and chocolates for airlines and hotels. During March, Lane purchased, on credit, 2100 pounds of confectioner's sugar @ $.80 per pound, 2300 pounds of granulated sugar @ $.90 per pound, 900 pounds of chocolate @ $4.00 per pound, and 300 pounds of caramel @ $1.50 per pound from Seattle Confectionery Supply. In addition, it purchased for cash 60 dozen eggs @ $.85 per dozen and |
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Project Part | Description/Requirements of Project Part |
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| 90 pounds of paraffin @ $.50 per pound from PMG Foods
• Prepare the journal entry to record the transactio month of March. Assume that over-or under-appl overhead is close to Cost of Goods Sold. • Prepare an Income statement for the month of
Task 3: Conversion Costs Problem Hartwell Drug Company produces a supplement to impro density. Conversion costs are added evenly throughout t production process. The following information is availabl March:
| . ns for the ied March. ve bone he e for |
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| Units |
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Units (gallons) in process, March 1 (40% complete) | 400 | ||||||||||||||||||||||
Project Part | Description/Requirements of Project Part | Evaluation Criteria | |||
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| Units started in March | 1,000 |
in process
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Units in process, March 31 (80% complete) | 250 | ||||
Costs |
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Conversion costs in WIP, March 1 |
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Labor | $36,000 | ||||
Overhead | $6,000 | ||||
Labor costs in March (5,100 hours) | $102,780 | ||||
Overhead in March $49,000
• Compute the number of units completed in March. • Compute the cost per equivalent unit for conversion costs. • Compute the conversion costs included in units completed in March. • Compute the conversion costs included in units at the end of March.
Submission Requirements: • Answer each problem in detail with conclusion and results. • Submit your answer in a Microsoft Excel file, showing step by-step calculations for each task.
Due: Module 3 Grading Weight: 10% | |||||
10 years ago
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