Managerial Accounting: Creating Value in a Dynamic Business Environment
12th Edition
ISBN: 9781260417074
Author: HILTON, Ronald
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 3, Problem 31E
a.
To determine
Introduction: The T-accounts are prepared to calculate the ending balance of an account. The T-account has one credit side and one debit side.
To prepare: The T-accounts to show the flow of costs.
b.
To determine
Introduction: The income statement is prepared by a company to calculate the net loss or net profit earned during the year. The balance sheet of a company is prepared to check its financial position of a company.
To prepare: The partial income statement and a partial balance sheet.
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Students have asked these similar questions
Compute conversion costs given the following data: direct materials, $393,800; direct labor, $198,500; factory overhead, $200,400 and selling
expenses, $36,900.
Oa, 5594,200
Ob. $163,500
Oc. S398,900
Od. $792,700
The following information has been taken from the cost records of Wil Company for thepast year:Raw material used in production P326Total manufacturing costs charged to production during the year (includes direct material, direct labor, and overhead equal to 60% of direct labor cost) 686Cost of goods available for sale 826Selling and Administrative expenses 25
Inventories       Beginning   EndingRaw Material      P75       P 85Work in Process    80         30Finished Goods    90        110
8. Cost of Goods Manufactured wasa. P636.b. P716.c. P736.d. P766.
Compute conversion costs given the following data: direct materials, $354,200; direct labor, $207,800; factory overhead, $193,000
expenses, $45,200.
Oa. $755,000
Ob. $147,800
Oc. $400,800
Od. $547,200
Chapter 3 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 3 - List and explain four purposes of product costing.Ch. 3 - Explain the difference between job-order and...Ch. 3 - How is the concept of product costing applied in...Ch. 3 - What are the purposes of the following documents:...Ch. 3 - Why is manufacturing overhead applied to products...Ch. 3 - Explain the benefits of using a predetermined...Ch. 3 - Describe one advantage and one disadvantage of...Ch. 3 - Describe an important cost-benefit issue involving...Ch. 3 - Explain the difference between actual and normal...Ch. 3 - When a single, volume-based cost driver (or...
Ch. 3 - Prob. 11RQCh. 3 - Describe the process of two-stage cost allocation...Ch. 3 - Define each of the following terms, and explain...Ch. 3 - Describe how job-order costing concepts are used...Ch. 3 - What is meant by the term cost driver? What is a...Ch. 3 - Describe the flow of costs through a...Ch. 3 - Give an example of how a hospital, such as the...Ch. 3 - Why are some manufacturing firms switching from...Ch. 3 - What is the cause of over applied or under applied...Ch. 3 - Briefly describe two ways of closing out over...Ch. 3 - Describe how a large retailer such as Lowes would...Ch. 3 - Prob. 22RQCh. 3 - For each of the following companies, indicate...Ch. 3 - The controller for Tender Bird Poultry, Inc....Ch. 3 - Finley Educational Products started and finished...Ch. 3 - Bodin Company manufactures finger splints for kids...Ch. 3 - McAllister, Inc. employs a normal costing system....Ch. 3 - Garrett Toy Company incurred the following costs...Ch. 3 - Crunchem Cereal Company incurred the following...Ch. 3 - Prob. 31ECh. 3 - Selected data concerning the past years operations...Ch. 3 - Sweet Tooth Confectionary incurred 157,000 of...Ch. 3 - The following information pertains to Trenton...Ch. 3 - The following data pertain to the Oneida...Ch. 3 - Refer to the data for the preceding exercise for...Ch. 3 - Design Arts Associates is an interior decorating...Ch. 3 - Suppose you are the controller for a company that...Ch. 3 - Laramie Leatherworks, which manufactures saddles...Ch. 3 - Refer to Exhibit 312, which portrays the three...Ch. 3 - Refer to the illustration of overhead application...Ch. 3 - The following data refer to Twisto Pretzel Company...Ch. 3 - Burlington Clock Works manufactures fine,...Ch. 3 - Perfecto Pizza Company produces microwavable...Ch. 3 - Stellar Sound, Inc. which uses a job-order costing...Ch. 3 - Finlon Upholstery, Inc. uses a job-order costing...Ch. 3 - JLR Enterprises provides consulting services...Ch. 3 - Garcia, Inc. uses a job-order costing system for...Ch. 3 - MarineCo, Inc. manufactures outboard motors and an...Ch. 3 - The following data refers to Huron Corporation for...Ch. 3 - Refer to the schedule of cost of goods...Ch. 3 - Marco Polo Map Companys cost of goods sold for...Ch. 3 - Midnight Sun Apparel Company uses normal costing,...Ch. 3 - Marc Jackson has recently been hired as a cost...Ch. 3 - Troy Electronics Company calculates its...Ch. 3 - Tiana Shar, the controller for Bondi Furniture...Ch. 3 - Scholastic Brass Corporation manufactures brass...Ch. 3 - Refer to the preceding problem regarding...Ch. 3 - Prob. 59PCh. 3 - TeleTech Corporation manufactures two different...Ch. 3 - CompuFurn, Inc. manufactures furniture for...Ch. 3 - FiberCom, Inc., a manufacturer of fiber optic...
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- The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?arrow_forwardCompute conversion costs given the following data: direct materials, $363,200; direct labor, $204,600; factory overhead, $192,100 and selling expenses, $39,100. a. $555,300 b. $759,900 O c. $153,000 od. $396,700arrow_forwardThe following information has been taken from the cost records of Wil Company for thepast year:Raw material used in production P326Total manufacturing costs charged to production during the year (includesdirect material, direct labor, and overhead equal to 60% of direct labor cost) 686Cost of goods available for sale 826Selling and Administrative expenses 25 Inventories Beginning EndingRaw Material P75 P 85Work in Process 80 30Finished Goods 90 110 Â Required: a. The cost of raw material purchased during the year b. Direct labor cost charged to production during the year c. Cost of Goods Manufactured d. Cost of Goods Soldarrow_forward
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- Direct Materials Cost, Prime Cost, Conversion Cost, Cost of Goods Manufactured Ellerson Company provided the following information for the last calendar year: Beginning inventory: Work in process Finished goods Ending inventory: Direct materials Direct materials Required: Work in process Finished goods During the year, direct materials purchases amounted to $275,000, direct labor cost was $189,000, and overhead cost was $525,000. During the year, 100,000 units were completed. $ $67,000 29,400 43,200 $70,400 1. Calculate the total cost of direct materials used in production. $ 271,600 2. Calculate the cost of goods manufactured. $ 980,000 X 50,000 Calculate the unit manufacturing cost. Round your answer to the nearest cent. 9.8 X per unit $ 42,100 3. Of the unit manufacturing cost calculated in Requirement 2, $2.60 is direct materials and $5.20 is overhead. Round your answers to the nearest cent. Feedback What is the prime cost per unit? $ 4.6 X per unit Check My Work What is the…arrow_forwardDirect Materials Cost, Prime Cost, Conversion Cost, Cost of Goods Manufactured Ellerson Company provided the following information for the last calendar year: Beginning Inventory: Direct materials Work in process Finished goods Ending inventory: Direct materials Work in process Finished goods During the year, direct materials purchases amounted to $275,000, direct labor cost was $189,000, and overhead cost was $530,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. $69,000 29,400 43,200 2. Calculate the cost of goods manufactured. What is the prime cost per unit? per unit $70,400 40,000 42,100 Calculate the unit manufacturing cost. Round your answer to the nearest cent. per unit 3. Of the unit manufacturing cost calculated in Requirement 2, $2.60 is direct materials and $5.20 is overhead. Round your answers to the nearest cent. What is the conversion cost per unit? per unitarrow_forwardGiven the following information, determine the cost of goods manufactured. Direct Labor Incurred $64,000 180,000 Manufacturing Overhead Incurred Direct Materials Used 155,000 197,000 98,000 220,500 110,000 Finished Goods Inventory, Jan. 1 Finished Goods Inventory, Dec. 31 Work-in - Process Inventory, Jan. 1 Work-in - Process Inventory, Dec. 31 O A. $185,000 B. $509,500 OC. $289,000 O D. $399,000arrow_forward
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