1. The records of Custom Choppers, Inc. for September 2014 shows the following information: Sales | $820,000 | Selling and administrative expenses | 140,000 | Direct materials purchases | 176,000 | Direct labor | 200,000 | Factory overhead | 270,000 | Direct materials, September 1 | 24,000 | Work in process, September 1 | 50,000 | Finished goods, September 1 | 46,000 | Direct materials, September 30 | 28,000 | Work in process, September 30 | 56,000 | Finished goods, September
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labor cost. 4. Sales commissions paid to the company’s salespeople: marketing and selling cost. 5. The wages of the assembly shop’s supervisor: manufacturing overhead cost. 6. The wages of the company’s accountant: administrative cost. 7. Depreciation on equipment used to test assembled computers before release to customers: manufacturing overhead cost. E2-3 1. Period 2. Product 3. Product 4. Product 5. Period 6. Product 7. Period 8. Product 9. Product
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CHAPTER 6 MASTER BUDGET AND RESPONSIBILITY ACCOUNTING 6-1 The budgeting cycle includes the following elements: a. Planning the performance of the company as a whole as well as planning the performance of its subunits. Management agrees on what is expected. b. Providing a frame of reference, a set of specific expectations against which actual results can be compared. c. Investigating variations from plans. If necessary, corrective action follows investigation. d. Planning again, in light of
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Chapter 3 Systems Design: Job-Order Costing Solutions to Questions 3-1 By definition, manufacturing overhead consists of costs that cannot be practically traced to jobs. Therefore, if these costs are to be assigned to jobs, they must be allocated rather than traced. 3-2 Job-order costing is used in situations where many different products or services are produced each period. Process costing is used in situations where a single, homogeneous product, such as cement, bricks, or gasoline, is produced
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Ideal Manufacturing Company is a company that is based out of Sycamore, Illinois, which has sustained a company that does research and production of farm related equipment. The company has been manufacturing the farming equipment for a number of years. Ideal Manufacturing has been the single supplier to outside manufacturing companies that are looking to hire research and development companies for special projects. The research and development department happenings have included an overhead cost center
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Holly Manufacturing Case Study Holly Manufacturing Company produces two cello models. One is a standard acoustic cello that sells for $600 and is constructed from medium-grade materials. The other model is a custom-made amplified cello with pearl inlays and a body constructed from special woods. The custom cello sells for $900. Both cellos require 10 hours of direct labor to produce, but the custom cello is manufactured by more experienced workers who are paid at a higher rate. Most
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$545,000 Manufacturer Overhead 65% Conversion Direct Materials $325,000 Beginning Balances Raw Materials $41,000 Works in Progress $56,000 Finished Goods $35,000 Conversion Cost= Manufacturing Overhead + Direct Labor Manufacturing Overhead= 65% of Conversion Direct labor= $220,000 Direct = 35% of Conversion 220,000= 35% of Conversion cost Conversion Cost= Manufacturing Overhead + Direct Labor $628,571 Direct Labor= $220,000 Manufacturing Overhead $408,571 Prime Cost=
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job-costing system has two direct cost categories (direct materials and direct manufacturing labour) and two manufacturing overhead cost pools (the Machining Department, allocated using machine hours and the Assembly Department, allocated using direct manufacturing labour costs). The 2010 budget for the plant is as follows: Machining Dept. Assembly Dept. Manufacturing Overhead Direct manufacturing labour cost Direct manufacturing labour hours Machine hours $1,800,000 $1,400,000 100,000
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To download more slides, ebook, solutions and test bank, visit http://downloadslide.blogspot.com CHAPTER 4 DISCUSSION QUESTIONS Q4-1. The five parts are: (a) Direct materials section (b) Direct labor section (c) Factory overhead (d) Work in process inventories (e) Finished goods inventories Q4-2. The balance sheet is a statement of financial position; the income statement is a statement of activity. The income statement is complementary to the balance sheet, accounting in particular
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Accounting by Manufacturing Companies The accounting cycle is the same in a manufacturing company, merchandising company, and a service company. Journal entries are used to record transactions, adjusting journal entries are used to recognize costs and revenues in the appropriate period, financial statements are prepared, and closing entries are recorded. Raw material purchases are recorded in the raw material inventory account if the perpetual inventory method is used, or the raw materials purchases
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