ACTG131 Exam 1

  Marketing salaries

52,600   

  Property taxes, factory

15,100   

  Administrative travel

102,300   

  Sales commissions

50,100   

  Indirect labor

45,000   

  Direct materials

168,700   

  Advertising

147,100   

  Depreciation of production equipment

45,900   

  Direct labor

90,200   

What is the total amount of product cost listed above? (Omit the “$” sign in your response.)

What is the total amount of period cost listed above? (Omit the “$” sign in your response.)

Corio Corporation reports that at an activity level of 5,000 units, its total variable cost is $286,350 and its total fixed cost is $118,881.

For the activity level of 5,100 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and (f) the average total cost per unit. Assume that this activity level is within the relevant range. (Round your “Average cost” to 2 decimal places and final answers to the nearest dollar amount. Omit the “$” sign in your response.)

Babb Company is a manufacturing firm that uses job-order costing. The company’s inventory balances were as follows at the beginning and end of the year:

Beginning Balance

Ending Balance

  Raw materials

11,600

15,800

  Work in process

32,300

14,600

  Finished goods

107,000

121,000

The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 17,300 machine-hours and incur $259,500 in manufacturing overhead cost. The following transactions were recorded for the year:

Raw materials were purchased, $413,000.

Raw materials were requisitioned for use in production, $408,800 ($376,000 direct and $32,800 indirect).

The following employee costs were incurred: direct labor, $338,000; indirect labor, $79,000; and administrative salaries, $155,000.

Selling costs, $113,000.

Factory utility costs, $21,000.

Depreciation for the year was $127,000 of which $111,000 is related to factory operations and $16,000 is related to selling, general, and administrative activities.

Manufacturing overhead was applied to jobs. The actual level of activity for the year was 14,100 machine-hours.

Sales for the year totaled $1,283,000.

Prepare a schedule of cost of goods manufactured in good form. (Do not round predetermined overhead rate. Input all amounts as positive values. Omit the “$” sign in your response.)

Was the overhead underapplied or overapplied? By how much? (Do not round predetermined overhead rate. Input the amount as a positive value. Omit the “$” sign in your response.)

Prepare an income statement for the year in good form. Prepare off-line Cost of Goods Sold Statement and close any underapplied or overapplied overhead to Cost of Goods Sold and use the Adjusted Cost of Goods Sold to answer this requirement. (Input all amounts as positive values. Omit the “$” sign in your response.)

Production and cost data for the month of February for Process A of the Packer manufacturing Company follow:

Units

2,000    

  New units started in process

8,000    

  Units completed

7,000    

  Units in process, February 28      (100% complete with respect to materials,        1/3 complete with respect to conversion cost)

3,000    

  Work in process inventory, February 1:

Materials

600    

Conversion

100    

  Costs incurred in February:

     Materials

issued

2,560    

1,500    

The company uses the weighted-average cost method in its process costing system.

Calculate the equivalent units and cost per equivalent unit for February for materials and for conversion costs. (Do not round intermediate calculations. Round your cost per equivalent unit answers to 3 decimal places. Omit the “$” sign in your response.)

Deluz Corporation uses the FIFO method in its process costing. The following data pertain to its Assembly Department for August.

Percent Complete

  Work in process, August 1

450     

60%        

40%        

  Units started into production during August

8,500     

  Units completed during August and transferred to   the next department

7,500     

  Work in process, August 31

1,450     

70%        

Compute the equivalent units of production for both materials and conversion costs for the Assembly Department for August using the FIFO method.