Graded Problem - 161 (1)

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School

Harrisburg Area Community College *

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Course

MISC

Subject

Accounting

Date

Apr 30, 2024

Type

docx

Pages

6

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Graded Problems These problems are assigned and graded to give students practice and to show how well each student understands accounting procedures. Submissions are to be uploaded to the corresponding Dropbox by the assigned due date (listed in the syllabus and the course calendar). Submissions may be completed in Word, Excel or on paper photographed and uploaded as a PDF or JPEG file. It is suggested that assigned chapter homework is completed (for practice) before the chapter’s graded problem is submitted. The problems are to be completed as shown in the In-class examples. Ch. 1 - Job Order Costing (20 pts.) - Skellington, Inc.’s management made the following estimates : overhead costs of $210,000; 10,500 direct labor hours and direct labor costs of $220,000. Management chooses to apply overhead based on DL hours. Skellington had the following activities during its most recent period: a. Purchased raw materials on account for $140,000 (both direct and indirect materials are recorded in the Raw Materials Inventory account). b. Issued raw materials to production of $130,000 (80% direct and 20% indirect). c. Incurred and paid factory labor costs of $250,000 cash (by using 7,000 DL hours) and allocated the factory labor costs (70% direct and 30% indirect). d. Incurred factory utilities costs of $20,000; this amount is still payable. e. Calculated & applied overhead f. Recorded factory depreciation, $22,000.  g. Transferred completed product with a cost of $400,000 to finished goods. h. Sold products for $350,000 cash. It had a cost of $275,000 i. Adjusted the FOH account. Ch. 2 - Activity Based Costing (12 pts.) Our four stores are supported by three service departments. Cost and operational data for each department follow: (Hint: Remember you need to use totals) Stores Salaries Sq. Footage PO’s Issued 1 $92,160 1,728 1,260 1
2 69,120 3,024 1,680 3 80,640 1,296 2,310 4 46,080 2,592 1,750 Totals Service Depts. Allocation Basis Costs HR Salaries $10,000 Maintenance Sq. Footage 6,900 Purchasing Number of PO’s 12,000 Determine the service expenses to be allocated to Store 1 for: HR __________________ Maintenance __________________ Purchasing __________________ Ch. 3 - EUP - Process Costing (20 pts.) 2
The following operating and cost data occurred during October: Hint: Oct 1 inventory is the beginning WIP Oct 31 inventory is the ending WIP Oct. production costs are the costs for the units started. Calculate the cost per EUP for March. Then calculate the total cost for the unit completed and the cost remaining in WIP.  3 Direct materials …….$60,000 Direct labor ……… ..... 7,500 Overhead …………… 15,000
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