TUTORIAL 3: Job costing 1. Cost accumulation procedure determination: Classify these industries with respect to the type of cost accumulation procedure generally used: Job order costing or process costing. |a. Meat | |g. Pianos | | |b. Sugar | |h. Toys |
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February 2010 and March 2010 are: Manufacturing overhead (boht variable and fixed) is allocated to each catamaran on the basis of budgeted direct manufacturing labor‐hours per desk. The budgeted variable manufacturing overhead for March 2010 is 148.750 and , the budgeted fixed manufacturing overhead for March 2010 is 42.500€. We will allocate both overheads on a per direct manufacturing labor hour base.. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished
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31)] 2. Factory overhead? ___$189,600____ [Depreciation – factory machinery + Small tools expense + Machine helpers wages + Miscellaneous factory expenses + Power – factory + Factory insurance expense+ Factory Supervisor Salary] …..All other costs are Administrative overhead and not Factory Overhead 3. Total manufacturing cost? $_555,200__ [Cost of Material Used + Factory Overhead + Direct Labor Cost] 4. Cost of goods manufactured? _$548,600___ [Total manufacturing cost + (Difference
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PROBLEM 2-21B Predetermined Overhead Rate; Disposition of Underapplied or Overapplied Overhead (LO1, LO7) CHECK FIGURE (2) Underapplied: $68,600 Adriana Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of computer-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year: |Computer-hours
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direct labor, and manufacturing overhead costs assigned to this job? (2) What is the predetermined manufacturing overhead rate? (3) What are the total cost and the unit cost of the completed job? (b) Prepare the entry to record the completion of the job. (a) (1) The source documents are: Direct materials—Materials requisition slips. Direct labor—Time tickets. Manufacturing overhead—Predetermined overhead rate. (2) The predetermined overhead rate is 120% of direct
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1) Before answering this question lets review the job and process costing sytems: Job order cost system: • Jobs are assigned to each job or batch • A job may be for a specific order of inventory Process cost system : • This cost system is generally used when a large volume of similar products are manufactured Answers: a. A custom yacht builder – job order costing b. A golf course designer – job order costing c. A potato chip manufacturer
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finished goods inventory. Manufacturing Statement P2 Prepare a manufacturing statement and explain its purpose and links to financial statements. A company's manufacturing activities are described in a manufacturing statement, also called the schedule of manufacturing activities or the schedule of cost of goods manufactured. The manufacturing statement summarizes the types and amounts of costs incurred in a company's manufacturing process. Exhibit 14.17 shows the manufacturing statement for Rocky Mountain
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prepared: Materials used in production (Remember raw materials used are NOT always the same as raw materials purchased so you must calculate it!): Prime Costs $545,000 Less Direct Labor Cost 220,000 Direct Materials Cost $325,000 Manufacturing Overhead Cost: The problem states direct labor cost and % mfg ovhd is of conversion cost , so you can figure out the % direct labor is of conversion cost and use the formula to calculate conversion cost Direct Labor Cost/ Percentage of Conversion
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outsource their manufacturing needs. Great motivation towards outsourcing is directly linked to the cost advantages that such a factor will provide. The cost advantages, as well as quality measures of continued in-house production or outsourcing is determined by the best interest of the company. This paper examines causes and after effects of outsourcing manufacturing activities. Firms that have made a reputation of producing products in-house often consider cost reducing manufacturing firms in terms
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Messinger Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted: (Assume actual costing is used) Work-in-process inventory (January 1) $ 140,400 Work-in-process inventory (March 31) 171,000 Finished goods inventory (January 1) 540,000 Finished goods inventory (March 31) 510,000 Direct materials used 378,000 Indirect materials used 84,000 Direct manufacturing labor 480
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