Managerial accounting
prasanth1204
ManegerialAccounting112.xlsxPart A
| a) | |
| Cost of Goods Manufactured | |
| Costs | |
| Raw Materials Purchases | $50,000 |
| Direct Labor Costs | $23,000 |
| Manufacturing Overhead Cost | $59,000 |
| Selling Expense | $18,000 |
| Administrative Expense | $43,000 |
| Inventories | |
| Add: Beginning Raw Materials Inventory | $26,000 |
| Deduct: Ending Raw Materials Inventory | ($35,000) |
| Add: Beginning Work In Process Inventory | $18,000 |
| Deduct: Ending Work in Process Inventory | ($22,000) |
| Add: Beginning Finished Goods Inventory | $42,000 |
| Add: Beginning Finished goods Inventory | ($29,000) |
| Costs of Good Manufactured | $193,000 |
| b) | |
| Income statement | |
| Revenue | |
| Sales | $220,000 |
| Total Revenue | $220,000 |
| Expenses | |
| Raw Materials Purchases | $50,000 |
| Direct Labor Costs | $23,000 |
| Manufacturing Overhead Cost | $59,000 |
| Selling Expense | $18,000 |
| Administrative Expense | $43,000 |
| Inventories | |
| Add: Beginning Raw Materials Inventory | $26,000 |
| Deduct: Ending Raw Materials Inventory | ($35,000) |
| Add: Beginning Work In Process Inventory | $18,000 |
| Deduct: Ending Work in Process Inventory | ($22,000) |
| Add: Beginning Finished Goods Inventory | $42,000 |
| Deduct:Ending Finished goods Inventory | ($29,000) |
| Total Expenses | $193,000 |
| Net Income | $27,000 |
PArt B
| Estimates | |
| Machine Hours | 95000 |
| Manufacturing overhead cost | $1,710,000 |
| Actual | |
| Machine Hours | 75000 |
| Manufacturing overhead cost | $1,687,500 |
| Amounts of Applied overhead in inventories | |
| Work in Process | $337,500 |
| Finished Goods | $253,125 |
| Amount of Overhead in cost of goods sold | $759,375 |
| a)Predetermined overhead rate ($/hr) | $18 |
| b) | |
| Applied overhead | $1,350,000 |
| Inventories | |
| Add: Ending work in process | $337,500 |
| Add: Ending Finished Goods | $253,125 |
| Total | $1,940,625 |
| Difference in operating income | ($506,250) |
Part C
| Work In Process Beginning | |
| Units in Processs | 2400 |
| Percent complete with respect to materials | 75% |
| Percent compete with respect to conversion | 50% |
| Costs in the beginning inventory | |
| Materials Cost | $8,400 |
| Conversion Cost | $7,200 |
| Units Started into production during the month | 20800 |
| Units completed and transferred out | 22200 |
| Costs added to production during month | $97,400 |
| Conversion costs | $129,600 |
| Work in process, ending | |
| Units in process | 1000 |
| Percent complete with respect to materials | 80% |
| Perecent complete with respect to conversion | 60% |
| a) Equivalent Units | 17240 |
| b)Costs per equivalent unit | $13.17 |
| c)cost of ending work in process inventory | $18,434 |
| d) cost of the units transferred to the next department | $292,308.58 |
Part D
| Cost in beginning work in process inventory | $1,920 | |
| Units started and completed this month | 3130 | |
| Materials Conversion | ||
| Cost per equivalent unit | $9.50 | $20.40 |
| Equivalent units required to complete the units in | ||
| beginning work in process inventory | 360140 | |
| Equivalent units in ending work in process | ||
| Inventory | 330264 | |
| cost of ending work in process inventory | $3,137,508.00 | |
| cost of units transferred out of the department | $673,322.40 | |
Part E
| H16Z | P25P | ||
| Direct materials Per Unit | $10.20 | $50.50 | |
| Direct Labor per Unit | $8.40 | $25.20 | |
| Direct Labor Hours per Unit | 0.4 | 1.2 | |
| Annual Production | 30000 | 1000 | |
| Activities and Activity Measures Estimated Overhead Cost | |||
| Supporting direct labor (DLHs) | $552,000 | ||
| Setting up machines (setups) | $132,480 | ||
| Parts administration (part types) | $780,000 | ||
| Total | $1,464,480 | ||
| H16Z | P25P | Total | |
| Suporting Direct Labor | 12000 | 12000 | 24000 |
| Setting Up Machines | 864 | 240 | 1104 |
| Parts Administration | 600 | 960 | 1560 |
| a) manufacturing overhead cost per unit of each of the company's two products under the traditional costing system. | |||
| H16Z | $13.56 | ||
| P25P | $80.74 | ||
| b)manufacturing overhead cost per unit of each of the company's two products under activity-based costing system. | |||
| H16Z | $22.66 | ||
| P25P | $859.68 |
