Wk 1 – Apply: Connect Assignment, Week 1

Wk 1 – Apply: Connect Assignment, Week 1

The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed:

Costs incurred:

Direct labor cost

$

85,000

Purchases of raw materials

$

130,000

Manufacturing overhead

$

203,000

Advertising expense

$

41,000

Sales salaries

$

104,000

Depreciation, office equipment

$

229,000

Beginning of the Year

End of the Year

Inventories:

Raw materials

$

8,700

$

10,100

Work in process

$

5,900

$

20,300

Finished goods

$

78,000

$

25,300

Required:

1.

Prepare a schedule of cost of goods manufactured.

MASON COMPANY

Schedule of Cost of Goods Manufactured

Direct materials:

Raw materials available for use

0

Raw materials used in production

$0

Total manufacturing costs

0

0

Cost of goods manufactured

$0

2.

Prepare the cost of goods sold section of Mason Company’s income statement for the year.

MASON COMPANY

Schedule of Cost of Goods Sold

Beginning finished goods inventory

Goods available for sale

0

Cost of goods sold

$0

Item2

Arden Company reported the following costs and expenses for the most recent month:

Direct materials

$

85,000

Direct labor

$

47,000

Manufacturing overhead

$

24,000

Selling expenses

$

27,000

Administrative expenses

$

40,000

Required:

1.

What is the total amount of product costs?

Total product costs

2.

What is the total amount of period costs?

Total period costs

3.

What is the total amount of conversion costs?

Total conversion costs

4.

What is the total amount of prime costs?

Total prime costs

Item3

Mickley Company’s predetermined overhead rate is $20.00 per direct labor-hour and its direct labor wage rate is $14.00 per hour. The following information pertains to Job A-500:

Direct materials

$240

Direct labor

$140

Required:

1.

What is the total manufacturing cost assigned to Job A-500?

Total manufacturing cost

2.

If Job A-500 consists of 80 units, what is the average cost assigned to each unit included in the job? (Round your answer to 2 decimal places.)

Average cost

per unit

Item4

Helix Corporation produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is added at the beginning of processing in that department. Data for May for the first production department follow:

Percent Complete

Units

Materials

Conversion

Work in process inventory, May 1

81,000

85

%

50

%

Work in process inventory, May 31

61,000

60

%

30

%

Materials cost in work in process inventory, May 1

$

63,000

Conversion cost in work in process inventory, May 1

$

18,800

Units started into production

254,400

Units transferred to the next production department

274,400

Materials cost added during May

$

428,380

Conversion cost added during May

$

270,973

Required:

1.

Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units for May for the first process.

Materials

Conversion

Equivalent units of production

2.

Compute the costs per equivalent unit for May for the first process. (Round your answers to 2 decimal places.)

Materials

Conversion

Cost per equivalent unit

3.

Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in May. (Round your intermediate calculations to 2 decimal places.)

Total

Cost of ending work in process inventory

Cost of units completed and transferred out

Garrison 15e Recheck 2014-12-17

1. Managerial Accounting helps managers perform

A) Multiple Choice

B) Planning

C) Decision-making

D) All of the above

E) Controlling

6.Managerial Accounting creates reports for managers within the organization while financial accounting creates reports outside the organization.

True or False

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True or False

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7.The IMA Statement of Ethical Professional Practice standards include all of the following EXCEPT:

Check All That Apply

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