Classify each of the following activities as unit level, batch level, product level, or facility level to indicate how each is incurred with respect to production. 1. Paying real estate taxes on the factory building 2. Attaching labels to collars of shirts 3. Redesigning a bicycle seat 4. Cleaning the Assembly department 5. Polishing gold wedding rings 6. Mixing bread dough in a commercial bakery 7. Sampling cookies to determine quality 8. Recycling hazardous waste 9. Reducing greenhouse gas emissions

Classify each of the following activities as unit level, batch level, product level, or facility level to indicate how each is incurred with respect to production. 1. Paying real estate taxes on the factory building 2. Attaching labels to collars of shirts 3. Redesigning a bicycle seat 4. Cleaning the Assembly department 5. Polishing gold wedding rings 6. Mixing bread dough in a commercial bakery 7. Sampling cookies to determine quality 8. Recycling hazardous waste 9. Reducing greenhouse gas emissions

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter4: Job-order Costing And Overhead Application

Section: Chapter Questions

Problem 35BEB: Use the following information for Brief Exercises 4-34 and 4-35: Sanjay Company manufactures a...

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Question 3 Categorize each of the following activities into the expenditure, conversion, or revenuecycles and identify the applicable subsystem: preparing the weekly payroll for manufacturing personnel releasing raw materials for use in the manufacturing cycle recording the receipt of payment for goods sold recording the order placed by a customer ordering raw materials determining the amount of raw materials to order
Problem 4-18 Part 2 2. The expected activity for the year was distributed among the company's four products as follows: Activity Cost Pool Labor-related (DLHS) Purchase orders (orders) Materials receipts (receipts) Relay assembly (relays) General factory (MHS) Expected Activity Product A Product B Product C Product D 2,550 250 310 200 12,750 Product A Product B Product C Product D 650 500 176 200 8,300 3,400 1,750 414 1,000 8,200 1,900 1,000 0 1,100 11,750 Using the ABC data, determine the total amount of overhead cost assigned to each product. 1
Problem 14-1A (Algo) Part 1 Required: 1. Classify each cost and its amount as either product or period. The first cost is completed as an example. Costs 1. Plastic for casing 2. Wages of assembly workers 3. Property taxes on factory 4. Office accounting salaries 5. Drum stands 6. Rent cost of office for accountants 7. Office management salaries 8. Annual fee for factory maintenance 9. Sales commissions 10. Factory machinery depreciation, straight-line Product Period $ 17,000
Problem 1Classify the following as to Fixed, Variable or Mixed Cost1. Factory Rent2. Wages of workers paid based on units produced3. Cost Accountant Salary4. Depreciation based on output5. Salary of Factory supervisor6. Basic Salary plus sales commission of salesman7. Paper in manufacturing of books8. Factory Insurance9. Monthly Depreciation of Building10. Bottle used in packaging
Refer to Exercise 8.29. Suppose Gene determines that next years Sales Division activities include the following: Researchresearching current and future conditions in the industry Shippingarranging for shipping of mattresses and handling calls from purchasing agents at retail stores to trace shipments and correct errors Jobberscoordinating the efforts of the independent jobbers who sell the mattresses Basic adsplacing print and television ads for the Sleepeze and Plushette lines Ultima adschoosing and working with the advertising agency on the Ultima account Office managementoperating the Sales Division office The percentage of time spent by each employee of the Sales Division on each of the above activities is given in the following table: Additional information is as follows: a. Depreciation on the office equipment belongs to the office management activity. b. Of the 21,000 for office supplies and other expenses, 5,000 can be assigned to telephone costs which can be split evenly between the shipping and jobbers activities. An additional 2,400 per year is attributable to Internet connections and fees, and the bulk of these costs (80 percent) are assignable to research. The remainder is a cost of office management. All other office supplies and costs are assigned to the office management activity. Required: 1. Prepare an activity-based budget for next year by activity. Use the expected level of sales activity. 2. On the basis of the budget prepared in Requirement 1, advise Gene regarding actions that might be taken to reduce expenses. Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,000 for the Sleepeze, 12,000 for the Plushette, and 5,000 for the Ultima. Gene Dixon, vice president of sales, has provided the following information: a. Salaries for his office (including himself at 65,000, a marketing research assistant at 40,000, and an administrative assistant at 25,000) are budgeted for 130,000 next year. b. Depreciation on the offices and equipment is 20,000 per year. c. Office supplies and other expenses total 21,000 per year. d. Advertising has been steady at 20,000 per year. However, the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this high-end mattress. Gene believes the company should spend 15 percent of first-year Ultima sales for a print and television campaign. e. Commissions on the Sleepeze and Plushette lines are 5 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores. f. Last year, shipping for the Sleepeze and Plushette lines averaged 50 per unit sold. Gene expects the Ultima line to ship for 75 per unit sold since this model features a larger mattress. Required: 1. Suppose that Gene is considering three sales scenarios as follows: Prepare a revenue budget for the Sales Division for the coming year for each scenario. 2. Prepare a flexible expense budget for the Sales Division for the three scenarios above.
3-34 Activity Levels and Cost Drivers Tartan Manufacturing Company produces four lines of high-quality lighting fixtures in a single manufacturing plant. Products are built to specific customer specifica- tions. All products are made-to-order. Management of the plant lists the following as the key activities at the plant: a. Product design b. Production scheduling c. Cost of purchasing department d. Receipt and inspection of materials e. Machine set-ups f. Product inspection, done for each product g. Plant security h. Customer credit check i. Machine operation j. Machine maintenance Required Identify a cost object and a cost driver for each activity.
15 Factory security and assembly activities at an appliance manufacturing plant would be best classified as unit- level, batch-level, product-level, or organization-sustaining activities? Security Product-level А. Assembly В. Batch-level Unit-level С. Unit-level Batch-level D. Batch-level Organization-sustaining activity Organization-sustaining activity Product-level Unit-level Assume a merchandising company provides the following information from its master budget for the month of September $ 79,800 $ 74,900 Cost of goods sold Cash paid for merchandise purchases $ 34,800 $ 26,400 $ 19,900 $ 26,800 Selling and administrative expenses Cash paid for selling and administrative expenses Retained earnings, May 1 Retained earnings, May 31 Dividends declared and paid in September $10,000 16 The company does not have any loans. What is its budgeted sales for September? Ignore taxes. A. $ В. $ 24 123,100 121,500 131,500 113,500 May 26800 С. 2$ D. 79800 E. None of the above.
PROBLEM 5 The following data have been provided the Monster Manufacturing Company for the most recent period: Sales Raw materials inventory, beginning Raw materials inventory, ending.. Purchases of raw materials. Direct labor..... Manufacturing overhead Administrative expenses. Selling expenses..... Work in process inventory, beginning Work in process inventory, ending Finished goods inventory, beginning. Finished goods inventory, ending. $16,800 $900 $750 $8,400 $1,240 $2,070 $1,890 $1,000 $700 $1,050 $970 $1,120 Required: Calculate the cost of goods manufactured and prepare an income statement.
ork Part 1 Tomlinson Company manufactures car seats in its Chicago plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. i (Click the icon to view information about Tomlinson Company's process-costing system.) Prepare a set of summarized journal entries for all October 2020 transactions affecting Work in Process As Begin by recording the purchase and use of direct materials. Journal Entry JE 1 Data table Accounts Work in process, October 1ª Started during October 2020 Question 2, P18-37 (simila Part 1 of 4 Completed during October 2020 Work in process, October 31b Total costs added during October 2020 a Degree of completion: direct materials, ?%; conversion costs, 60%. bDegree of completion: direct materials, ?%; conversion costs, 75%. Debit Physical Units Direct (Car Seats) Materials 4,500 21,500 24,000 2,000 Credit Conversion Costs $1,152,000 $483,300 $4,386,000 $2,143,200 I X Requirement Prepare a set…
Use the following information for Brief Exercises 4-34 and 4-35: Sanjay Company manufactures a product in a factory that has two producing departments, Assembly and Painting, and two support departments, S1 and S2. The activity driver for S1 is square footage, and the activity driver for S2 is number of machine hours. The following data pertain to Sanjay: Brief Exercises 4-35 (Appendix 4B) Sequential Method Refer to the information for Sanjay Company on the previous page. Now assume that Sanjay uses the sequential method to allocate support department costs. S1 is allocated first, then S2. Required: 1. Calculate the cost assignment ratios to be used under the sequential method for S2, Assembly, and Painting. Carry out your answers to four decimal places. 2. Allocate the overhead costs to the producing departments by using the sequential method.
2. Prepare journal entries to record the events and transactions 1-11 1. Record raw material purchases on credit 2. Record the requisition of direct materials 3. Record the indirect materials 4. Record the entry for direct labor, paid in cash 5. Record the entry for indirect labor, paid in cash 6. Record the entry to apply overhead to jobs 136, 138 and 139 7. Record the transfer of completed jobs 136, 138 and 139 to finished goods 8. Record the entry for sales on account for jobs 136 and 138 9. Record the entry for the cost of jobs 136 and 138 10. Record the entry for the actual overhead costs incurred 11. Record the entry to apply overhead to jobs 137 and 140 (work in process)
Chapter 7 Which of the following journal entries would be used to record direct labor costs in a company having two processing departments (Department A and Department B)? a. Work in Process XXX XXX Salaries and Wages Payable b. Salaries and Wages Expense Salaries and Wages payable c. Work in Process-Department A Work in Process-Department B Salaries and Wages Payable d. Salaries and Wages Payable Work in Process XXX XXX XXX XXX XXX XXX XXX