Management 11B Summer 2014 Rich Armstrong

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Management 11B Summer 2014 Rich Armstrong

Question # 00022857 Posted By: maqj Updated on: 08/13/2014 12:04 AM Due on: 08/14/2014

Subject Business Topic General Business Tutorials:

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Management 11B

Summer 2014

Rich Armstrong

Problem Set #1

3) Problem 14-3B (30 points)

P14-3B

Indicate the missing amount of different cost items, and prepare a condensed cost of goods manufactured schedule, an income statement, and a partial balance sheet.

(SO5,6,7),AN

Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.

	Case
	A	B
Direct materials used	$?6,300	$?(g)??
Direct labor	3,000	4,000
Manufacturing overhead	6,000	5,000
Total manufacturing costs	(a)??	16,000
Beginning work in process inventory	1,000	(h)??
Ending work in process inventory	(b)??	2,000
Sales	22,500	(i)??
Sales discounts	1,500	1,200
Cost of goods manufactured	15,800	20,000
Beginning finished goods inventory	(c)??	5,000
Goods available for sale	18,300	(j)??
Cost of goods sold	(d)??	(k)?
Ending finished goods inventory	1,200	2,500
Gross profit	(e)?	6,000
Operating expenses	2,700	(l)?
Net income	(f)?	2,200

Instructions

(a)	Indicate the missing amount for each letter.
(b)	Prepare a condensed cost of goods manufactured schedule for Case A.

(c)

Prepare an income statement and the current assets section of the balance sheet for Case A. Assume that in Case A the other items in the current assets section are as follows: Cash $3,000, Receivables (net) $10,000, Raw Materials $700, and Prepaid Expenses $200.

Chapter 15

4) Exercise 15-9 (15 points)

E15-9

Prepare a cost of goods manufactured schedule and partial financial statements.

(SO2,5),AP

At May 31, 2012, the accounts of Mantle Manufacturing Company show the following.

E15-

1.	May 1 inventories—finished goods $12,600, work in process $14,700, and raw materials $8,200.
2.	May 31 inventories—finished goods $9,500, work in process $17,900, and raw materials $7,100.
3.	Debit postings to work in process were: direct materials $62,400, direct labor $50,000, and manufacturing overhead applied $40,000.
4.	Sales totaled $210,000.

Instructions

(a)	Prepare a condensed cost of goods manufactured schedule.
(b)	Prepare an income statement for May through gross profit.

(c)

Indicate the balance sheet presentation of the manufacturing inventories at May 31, 2012.

5) Exercise 15-12 (15 points)

E15-12

Determine cost of jobs and ending balance in work in process and overhead accounts.

(SO3,4,6),AP

Don Lieberman and Associates, a CPA firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerning the three audit jobs conducted during November.

	Lynn	Brian	Mike
Direct materials	$600	$400	$200
Auditor labor costs	$5,400	$6,600	$3,375
Auditor hours	72	88	45

Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $50 per auditor hour. The Lynn job is the only incomplete job at the end of November. Actual overhead for the month was $11,000.

Instructions

(a)	Determine the cost of each job.
(b)	Indicate the balance of the Work in Process account at the end of November.

(c)

Calculate the ending balance of the Manufacturing Overhead account for November.

6) Problem 15-3B (32 points)

P15-3B

Prepare entries in a job order cost system and cost of goods manufactured schedule.

(SO2,3,4,5),AP

Robert Perez is a contractor specializing in custom-built jacuzzis. On May 1, 2012, his ledger contains the following data.

Raw Materials Inventory	$30,000
Work in Process Inventory	?12,200
Manufacturing Overhead	??2,500 (dr.)

The Manufacturing Overhead account has debit totals of $12,500 and credit totals of $10,000. Subsidiary data for Work in Process Inventory on May 1 include:

Job Cost Sheets
Job by Customer	Direct Materials	Direct Labor	Manufacturing Overhead
Stiner	$2,500	$2,000	$1,400
Alton	2,000	1,200	840
Herman	900	800	560
	$5,400	$4,000	$2,800

During May, the following costs were incurred: raw materials purchased on account $4,000, labor paid $7,000, and manufacturing overhead paid $1,400.

A summary of materials requisition slips and time tickets for the month of May reveals the following.

Job by Customer	Materials Requisition Slips	Time Tickets
Stiner	$ 500	$ 400
Alton	600	1,000
Herman	2,300	1,300
Smith	1,900	2,300
	5,300	5,000
General use	1,500	2,000
	$6,800	$7,000

Overhead was charged to jobs on the basis of $0.70 per dollar of direct labor cost. The jacuzzis for customers Stiner, Alton, and Herman were completed during May. The three jacuzzis were sold for a total of $36,000.

Instructions

(a)	Prepare journal entries for the May transactions: (i) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred; (ii) assignment of raw materials, labor, and overhead to production; and (iii) completion of jobs and sale of goods.
(b)	Post the entries to Work in Process Inventory.

(c)	Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.
(d)	Prepare a cost of goods manufactured schedule for May.

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