Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 18, Problem 7QC
| Questions 7 and 8 use the data that follow. Suppose a bakery reports the following information: |
|
| Beginning Direct Materials | $ 6,000 |
| Ending Direct Materials | 5,000 |
| Beginning Work-in-Process Inventory | 3,000 |
| Ending Work-in-Process Inventory | 2,000 |
| Beginning Finished Goods Inventory | 4,000 |
| Ending Finished Goods Inventory | 6,000 |
| Direct Labor | 29,000 |
| Purchases of Direct Materials | 102,000 |
| Manufacturing |
20,000 |
7. What is the cost of direct materials used?
Learning Objective 3
- $101,000
- $103,000
- $114,000
- $102,000
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Learning Objectives 2, 3, 4
1. Total cost per EUP $2.26
3. WIP Balance $1,836
Open with
P18-38B Preparing a production cost report, two materials added at different
points, no beginning WIP or costs transferred in; journal entries
Bryan's Exteriors produces exterior siding for homes. The Preparation Department
begins with wood, which is chopped into small bits. At the end of the process, an
adhesive is added. Then the wood/adhesive mixture goes on to the Compression
Department, where the wood is compressed into sheets. Conversion costs are
added evenly throughout the preparation process. January data for the Preparation
Department are as follows:
UNITS
Beginning Work-in-Process Inventory
Started in production
Completed and transferred out to Compression in January
Ending Work-in-Process inventory (35% of the way through
the preparation process)
COSTS
Beginning Work-in-Process Inventory
Costs added during January:
Wood
Adhesives
Direct labor
Manufacturing overhead allocated
Total costs…
S17-8 Completing and selling products
Learning Objective 4
Lincoln Company completed jobs that cost $38,000 to produce. In the same
period, the company sold jobs for $88,000 that cost $42,000 to produce. Prepare
the journal entries for the completion and sales of the jobs. All sales are on
account.
E3-25A Analyze manufacturing overhead (Learning Objectives 3 & 5)
Smith Foundry in Columbus, Ohio, uses a predetermined manufacturing overhead rate to
allocate overhead to individual jobs based on the machine hours required. At the begin-
ning of the year, the company expected to incur the following:
Manufacturing overhead costs
Direct labor cost
Machine hours
$ 630,000
$1,650,000
90,000
********e**
At the end of the year, the company had actually incurred the following:
Direct labor cost
Depreciation on manufacturing plant and equipment
Property taxes on plant
Sales salaries ...
$1,230,000
$ 480,000
$ 19,500
$ 26,500
Delivery drivers' wages
Plant janitors' wages
17,000
%24
8,500
Machine hours
56,500 hours
Requirements
1. Compute Smith's predetermined manufacturing overhead rate.
2. How much manufacturing overhead was allocated to jobs during the year?
3. How much manufacturing overhead was incurred during the year? Is manufacturing
overhead underallocated or overallocated at the end…
Chapter 18 Solutions
Horngren's Accounting (12th Edition)
Ch. 18 - Prob. 1QCCh. 18 - Prob. 2QCCh. 18 - Dunaway Company reports the following costs for...Ch. 18 - Which of the following is a direct cost of...Ch. 18 - Which of the following is not part of...Ch. 18 - Which of the following accounts does a...Ch. 18 - Questions 7 and 8 use the data that follow....Ch. 18 - Questions 7 and 8 use the data that follow....Ch. 18 - World-class businesses use which of these systems...Ch. 18 - Prob. 10QC
Ch. 18 - What is the primary purpose of managerial...Ch. 18 - List six differences between financial accounting...Ch. 18 - Explain the difference between line positions and...Ch. 18 - Explain the differences between planning,...Ch. 18 - Prob. 5RQCh. 18 - Describe a service company, and give an example.Ch. 18 - Describe a merchandising company, and give an...Ch. 18 - How do manufacturing companies differ from...Ch. 18 - List the three inventory accounts used by...Ch. 18 - Explain the difference between a direct cost and...Ch. 18 - What are the three manufacturing costs for a...Ch. 18 - Give five examples of manufacturing overhead.Ch. 18 - What are prime costs? Conversion costs?Ch. 18 - What are product costs?Ch. 18 - How do period costs differ from product costs?Ch. 18 - How is cost of goods manufactured calculated?Ch. 18 - How does a manufacturing company calculate cost of...Ch. 18 - How does a manufacturing company calculate unit...Ch. 18 - How does a service company calculate unit cost per...Ch. 18 - How does a merchandising company calculate unit...Ch. 18 - Prob. S18.1SECh. 18 - Prob. S18.2SECh. 18 - Distinguishing between direct and indirect costs...Ch. 18 - Computing manufacturing overhead Learning...Ch. 18 - Identifying product costs and period costs...Ch. 18 - Computing cost of goods sold, merchandising...Ch. 18 - Computing cost of goods sold and operating income,...Ch. 18 - Prob. S18.8SECh. 18 - Prob. S18.9SECh. 18 - Prob. S18.10SECh. 18 - S18-11 Matching business trends...Ch. 18 - Prob. S18.12SECh. 18 - Prob. E18.13ECh. 18 - Prob. E18.14ECh. 18 - Prob. E18.15ECh. 18 - Prob. E18.16ECh. 18 - Identifying differences between service,...Ch. 18 - Prob. E18.18ECh. 18 - Computing cost of goods manufactured Learning...Ch. 18 - Prob. E18.20ECh. 18 - Prob. E18.21ECh. 18 - Prob. E18.22ECh. 18 - Prob. E18.23ECh. 18 - Prob. E18.24ECh. 18 - Prob. P18.25APGACh. 18 - Classifying period costs and product costs...Ch. 18 - Calculating cost of goods sold for merchandising...Ch. 18 - Prob. P18.28APGACh. 18 - Preparing a schedule of cost of goods manufactured...Ch. 18 - Prob. P18.30APGACh. 18 - Prob. P18.31APGACh. 18 - Prob. P18.32APGACh. 18 - Prob. P18.33BPGBCh. 18 - Prob. P18.34BPGBCh. 18 - Prob. P18.35BPGBCh. 18 - Prob. P18.36BPGBCh. 18 - Prob. P18.37BPGBCh. 18 - Prob. P18.38BPGBCh. 18 - Prob. P18.39BPGBCh. 18 - Prob. P18.40BPGBCh. 18 - Prob. P18.41CTCh. 18 - Prob. P18.42CPCh. 18 - Prob. 18.1TIATCCh. 18 - Prob. 18.1DCCh. 18 - Prob. 18.1EI
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