managerial accounting- assignment week 3 attempt 2
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Managerial Accounting- Assignment Week 3 Attempt 2TRANSCRIPT
Inventories
Beginning Ending
Raw material 61,000 81,000
Work in process 80,000 30,000
Finished goods 90,000 110,000
Direct material used 318,000
Direct Labour 230,000Manufecturing Overhead-60% of Direct Labor 138000Total manufacturing costs 686,000
Cost of goods available for sale 826,000
30,500
Q1- Raw material purchasedDirect material used 318,000Add Raw material ending 399,000Deduct raw material beginning 338,000 This is raw material purchased during year
Selling and administrative expenses
This is raw material purchased during year
Aquarius Hotel Supply Company
Budgeted sales revenue 205,000Budgeted manufacturing overhead 364,000Budgeted machine hours (based on practical capacity) 10,000Budgeted direct-labor hours (based on practical capacity) 20,000Budgeted direct-labor rate per hour 14Actual manufacturing overhead 340000Actual machine hours 11000Actual direct-labor hours 18000Actual direct-labor rate per hour 16
Predetermined Overhead Rate 36.4Actual Overhead Rate 30.909091
Applied Manufecturing Overhead 400400
Inventories
Beginning Ending
Work in process 94,500 126000
Direct material used
Direct Labour
Manufecturing Overhead-20 percent of total manufacturing costs
Total manufacturing costs
1,338,500
Cherry Hill Glass Company employs a normal costing system
Total manufacturing costs were $1,310,000.
Cost of goods manufactured
• Cost of goods manufactured was $1,275,500.
• Applied manufacturing overhead was 30 percent of total manufacturing costs.
• Manufacturing overhead was applied to production at a rate of 80 percent of direct-labor cost.
• Work-in-process inventory on January 1 was 75 percent of work-in-process inventory on December 31.
TMC 1,370,000Add WIP B 1,464,500Deduct WIP E 1,338,500
753,500
342,500 Value of X 7,875274000
1,370,000
Paramus Metal Works for the year just ended
Budgeted direct-labor cost: 75,000 hours (practical capacity) at $16 per hourBudgted labor hoursBudgted labor Rate
Actual direct-labor cost: 80,000 hours at $17.50 per hourActual labor hoursActual labor Rate
Predetermined Overhead Rate
Actual Overhead rate
Overhead as per bidgted rateOverhead as per actual rateclose out the Manufacturing Overhead account into Cost of Goods Sold
Budgeted manufacturing overhead:
Budgeted selling and administrative expenses:
Actual manufacturing overhead: Depreciation Property taxes Indirect labor Supervisory salaries Utilities Insurance Rental of space Indirect material (see data below) Indirect material: Beginning inventory, January 1 Purchases during the year Ending inventory, December 31
12000007500016
14000008000017.5
99750013.3
430000
10040002340002200082000201000580003100030000076000
47,00093,0006400012.55
1064000100400060000
No explanation
Rexford Company
Inventories
Beginning Ending
Raw material 134,000 124,000
Work in process 237,000 251,000
Finished goods 125,000 117,000
Direct material purchaed 191,000
Raw Material Used 201,000
Direct Labour 350,000
Predetermined Manufecturing Overhead-60% of Direct Labor 210000Actual manufacturing overhead 175,000
Overapplied overhead 35,000Overhead applied to work in process 210,000
Total manufecturing costs 761,000Add Work In process beginning 998,000Deduct work in process at end 747,000
Cost of good manufectured 747,000Add- Finished goods inventory beginning 872,000Cost of goods available for Sale 872,000deduct- Finished goods inventory end 755,000Cost of good sold 755,000Dedct overapplied overhead 720,000Cost of good sold (adjusted for overapplied overhead) 720,000Actual Selling and administrative expenses 120,000
Rexford Company
Inventories
Beginning Ending
Raw material 227,000 54,000
Work in process 16,000 548,000
Finished goods 28,000 17,000
Direct material purchaed 0
Direct Material Used 173,000Direct Labour 320,000
Overhead applied to work in process 160,000
Total manufecturing costs 653,000Add Work In process beginning 669,000Deduct work in process at end 121,000
Cost of good manufectured 121,000Add- Finished goods inventory beginning 149,000Cost of goods available for Sale 149,000deduct- Finished goods inventory end 132,000Cost of good sold 132,000Sales revenue 195000Gross Margin 63,000
Budgeted sales revenue 205,000364,000
8,00020,000
13338,000
11,00018,000
16
Budgted Ovehead rate-Machine Hours 45.5Busgted Overhead- Labor Hours 18.2Busgted Overhead- Labor Dollars 1.4
Overapplied Machine Hours 162,500Underapplied Labour Hours 10,400Overapplied Labor Rate 65200
Aquarius Hotel Supply Company
Budgeted manufacturing overhead Budgeted machine hours (based on practical capacity) Budgeted direct-labor hours (based on practical capacity) Budgeted direct-labor rate per hour Actual manufacturing overhead Actual machine hours Actual direct-labor hours Actual direct-labor rate per hour