Chat with us, powered by LiveChat ACC 601 Managerial Accounting Case 1 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement - Wridemy Bestessaypapers

ACC 601 Managerial Accounting Case 1 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement

Instructions:

1. Complete the following activities in good form. Use excel or word only.

Provide all supporting calculations to show how you arrived at your

numbers

2. Case study needs to be in APA format.

ACC 601 Managerial Accounting Case 1 (100 points)

Instructions: 1. Complete the following activities in good form. Use excel or word only.

Provide all supporting calculations to show how you arrived at your numbers

2. Submit only one copy of your completed work via Moodle. Do not send it to me by email.

3. Case study needs to be in APA format.

Part A: Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement

Nish Corporation has provided the following data for the month of April:

Sales……………………………………….. $220,000 Raw materials purchases …………… $50,000 Direct labor cost ………………………. $23,000 Manufacturing overhead cost …….. $59,000 Selling expense………………………… $18,000 Administrative expense …………….. $43,000

Inventories: Beginning Ending Raw materials …….. $26,000 $35,000 Work in process….. $18,000 $22,000 Finished goods……. $42,000 $29,000

Required:

a. Prepare a Schedule of Cost of Goods Manufactured in good form for April. b. Prepare an Income Statement in good form for April.

Part B: Application of Job Order Costing

Scanlon Company has a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The following estimates were used in preparing the predetermined overhead rate for the most recent year:

Machine-hours…………………………. 95,000 Manufacturing overhead cost …….. $1,710,000

During the most recent year, a severe recession in the company’s industry caused a buildup of inventory in the company’s warehouses. The company’s cost records revealed the following actual cost and operating data for the year:

Machine-hours………………………………………………………………….. 75,000 Manufacturing overhead cost ……………………………………………… $1,687,500 Amount of applied overhead in inventories at year-end:

Work in process……………………………………………………………… $337,500 Finished goods……………………………………………………………….. $253,125 Amount of applied overhead in cost of goods sold……………… $759,375

Required:

a. Compute the company's predetermined overhead rate for the year and the amount of underapplied or overapplied overhead for the year.

b. Determine the difference between net operating income for the year if the underapplied or overapplied overhead is allocated to the appropriate accounts rather than closed directly to Cost of Goods Sold.

Part C: Process Costing using Weighted Average

Timberline Associates uses the weighted-average method in its process costing system. The following

data are for the first processing department for a recent month:

Work in process, beginning: Units in process ……………………………………………….. 2,400

Percent complete with respect to materials ………….. 75% Percent complete 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……….. 20,800 Units completed and transferred out ……………………… 22,200 Costs added to production during the month:

Materials cost ………………………………………………….. $97,400 Conversion cost ……………………………………………….. $129,600

Work in process, ending: Units in process ……………………………………………….. 1,000

Percent complete with respect to materials ………….. 80% Percent complete with respect to conversion ………..

60%

Required:

a. Determine the equivalent units of production. b. Determine the costs per equivalent unit. c. Determine the cost of ending work in process inventory. d. Determine the cost of the units transferred to the next department.

Part D: Process Costing using First-in-First Out (FIFO)

Crone Corporation uses the FIFO method in its processing costing system. The following data concern the company's Assembly Department for the month of October.

Cost in beginning work in process inventory…….. $1,920 Units started and completed this month ……………. 3,130

Materials Conversion Cost per equivalent unit………………………………….. $9.50 $20.40 Equivalent units required to complete the units in

beginning work in process inventory…………….. 360 140 Equivalent units in ending work in process

inventory …………………………………………………… 330 264

Required:

Determine the cost of ending work in process inventory and the cost of units transferred out of the department during October using the FIFO method.

Part E: Activity-Based Costing

Welk Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, H16Z and P25P, about which it has provided the following data:

H16Z P25P Direct materials per unit ……………. $10.20 $50.50 Direct labor per unit …………………. $8.40 $25.20 Direct labor-hours per unit ………… 0.40 1.20 Annual production……………………. 30,000 10,000

The company’s estimated total manufacturing overhead for the year is $1,464,480 and the company’s estimated total direct labor-hours for the year is 24,000.

The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:

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 Supporting direct labor …… 12,000 12,000 24,000 Setting up machines ……….. 864 240 1,104 Parts administration ……….. 600 960 1,560

Required:

a. Determine the manufacturing overhead cost per unit of each of the company's two products under the traditional costing system.

b. Determine the manufacturing overhead cost per unit of each of the company's two products under activity-based costing system.

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.

Do you need an answer to this or any other questions?