Accounting

1

I am the production foreman. I get to work and clock in. I work the entire day and supervise everyone's activities. I earn $100 for the day with fringe benefits.

2

I am the chicken for the chicken pot pies.

500 pounds is removed from the freezer and taken to the production area. At standard or normal cost, my value is $2500. The batch will produce 10,000 very fancy pot pies.

3

I am the cook, I take the chicken and add it to the batch of water, carrots, celery, potatoes and flour. I spend three hours cooking the food. I earn $10 an hour with fringes.

4

I am the USDA inspector. When I walk in, everyone sits down. $4000 in wages are incurred by cooks while I walk around.

5

I am the electric bill for the plant. My total is $5000

6

I am the tax bill for the plant. My bill is $7000

7

I am the hazardous waste disposal bill. My total is $800.

8

I am the Marketing Director, I earn $260,000 a year working part-time or $2600 a day - We will record today's cost only.

9

I am the quality control supervisor. I earn $67,600 a year or $260 a day. We will record today's cost only.

10

I am the heating bill for the fancy office building housing the president. My total is $30,000 for the month. We will record the cost for the month.

11

I am glue brought over to the packaging area for sealing the boxes of pot pies - value $10

12

I am the specialty cook called in to work one hour of overtime to add a special touch to the pot pie. My hourly wage is $10, but my overtime pay is a total of $15 per hour

13

I am the depreciation on the oven used to cook the pies $5000.

14

I am the total number of other labor hours for the other cooks spent on the batch of pot pies 196 hours at $10 per hour.

15

I am the overhead that needs to be applied.

16

I am the 10,000 finished pot pie. I am moved to the completed pot pie freezer.

We start a new batch

17 a. I am the raw materials used for the new batch: 2250 pounds at $5 per pound is removed from the Raw Material Inventory & Transferred to WIP

17 b. I am 900 hours worked on the new batch - $10 per hour is paid

17 c. I am the manufacturing overhead applied to this job with 900 hours worked, and 2250 of materials used

18

I am an additional 45,000 pot pies transferred to the finished pot pie freezer – You will need to record the completion of the pot pies.

18.5

Pies costing $45,000 are sold on account at 200% of cost (Two Entries)

19

I am the end of the month, and it is time to deal with the under/over applied inventory