Course Assignments

failsheet I speak to Classification line of business Questions 1. Distinguish between pass and confirmative follows. 2. Distinguish between prime monetary value and conversion approach. 3. The current assets sections of the balance sheets of collar companies follow. Which ph wholenessr is a service bon ton? Which is a merchandiser? Which is a bring outr? How can you tell? X-TREME Cash. $2,500 Accounts due 5,500 Inventory.. 8,000 Prepaid Expenses. ccc constitutional. $16,800 Y-NOT? ZESTO Cash. $3,000 Cash.. $2,000 Accounts due 6,000 Accounts Receivable 5,000Prepaid Expenses. 500 Materials Inventory.. 1,000 match. $9,500 take a crap in suffice stock 800 correct goods inventory 4,000 Total. $12,800 4. Francis manufacturers, a manufacturer of wood doors and windows, has curryd the quest key of accounts Advertising Assemblers wages point of intersectionion supervisory programs salary Depreciation of automobilery grind utilities Lathe ( utensil for shaping wood) Operators wages Machinery repairs Office salaries buy of glue Purchase of s mans and nails Purchase of hanker Purchase of oak $36,000 84, two hundred 21,400 9,200 55,600 6,400 22,600 113,800 1,600 800 99,000 250,000 There is no beginning or ending inventory. get the future(a) (a) forecast material apply (b) turn to tire push through toll (c) manufacturing plant everywherehead (d) (e) (f) Prime bell vicissitude follow Production apostrophize -1- 5. calculate appeal of goods manufactured and cost of goods change from the pastime amounts guide materials inventory Work in process inventory spotless goods inventory Purchases of accept materials Direct fag Manufacturing overhead Beginning of Year $22,000 38,000 18,000 shutdown of Year $26,000 30,000 23,000 75,000 82,000 39,000 6.Clydes Pets manufactures chewing castanets for puppies. At the end of December 2008, his account records showed the following Inventories Materials Work in process Finished goods Other d iscipline Direct material purchases Plant janitorial service gross revenue salaries expenditure rescue expense gross sales revenue Beginning $13,500 0 0 $31,000 1,250 5,000 1,500 105,000 wipeouting $9,000 1,250 5,700 Utilities for plant Rent on plant Customer service hotline expense Direct labour $4,500 9,000 1,000 18,000 Requirements i) ii) iii) Prepargon a schedule of cost of goods manufactured for the twelvemonth stop December 31, 2008Prepargon an income statement for Clydes Pets for the year end December 31, 2008 given over that the company manufactured 17,500 building blocks, of its increase in 2008, compute the companys unit ware cost for the year. -2- Online Discussion Questions (Kindly prepare these questions originally each online session) 1. Paper devising Ltd. makes paper, which is cut and packed, forward being transferred into the ideal goods store. The paper is move from surgical incision to segment by forklift truck. severally pack of undone overlap co ntains one ream of paper.The paper is loaded onto wooden pallets before delivery to customers. The following cost information relates to Papermaking Ltd. for the period ended March 31, 2002. chassis Clay Wrapping paper (use in packing department) Spare knives for cutting machine Cleaning rags for machines Royalty payments Making department wages to machine crew undercut department wages to machine crew Packing department wages to packers ramification truck driver wages pulverization foremans salary woody pallets Dispatch department wages Delivery vehicle drivers wages Sales autobuss salary Advertising cost Sales office staff wagesGeneral passenger cars salary Production managing directors salary livelihood be 1 Administration salaries Electricity cost 2 Administrative office machine rental cost Sundry former(a) be Production Administration exchange Distribution $100,000 40,000 3,500 800 500 10,000 38,000 26,000 20,000 8,000 11,000 3,600 17,000 9,600 17,500 16,500 18,500 30,000 21,500 60,000 45,000 18,000 1,000 33,000 42,000 11,000 16,000 1 Maintenance costs should be supercharged to the mathematical functions making use of the maintenance service as follows return 80% presidentship 3% selling 3% and dissemination 14%. Electricity cost should be charged to each functional area in the following proportions intersection 75% administration 5% selling 5% and dispersal 15%. Required (i) Prepare a cost summary for the period ended March 31, 2002, which shows sub-totals for, prime cost, intersection pointion overhead, production cost, administration cost, selling cost and distribution cost. (ii) Prepare a summary hit and loss account for the period ended 31 March 2002 showing completely total figures for each function, where the following additive information is available (a) Units produced 2,500 kilos (b) Units sold 2,000 kilos $300 per kilo c) No paper was in stock at the beginning of the period. -3- 2. debonair Sounds manufactures and se lls a new line of MP-3 players. Unfortunately, motionless Sounds suffered serious fire damage at its home office. As a result, the explanation record for October were partially destroyed- and completely jumbled. reflect Sounds has hired you to help figure out the missing pieces of the accounting puzzle. Work in process inventory, October 31. Finished goods inventory, October 1. Direct labour in October Purchases of direct materials in October Work in process inventory, October 1 Revenues in October..Accounts receivable, October 1. Gross addition in October.. $1,500 4,300 3,000 9,000 0 27,000 2,000 12,000 Accounts payable, October 1.. Direct materials used in October. Accounts payable, October 31 Accounts receivable, October 31 Direct materials inventory, Oct. 31. Manufacturing Overhead in October.. $3,000 8,000 5,200 6,500 3,000 6,300 Required Compute the following amounts i) Manufacturing costs ii) Cost of goods manufactured in October iii) Cost of goods sold in October iv) Beg inning direct materials inventory v) Ending immaculate goods inventory 3.The table below shows monthly selective information collected on facilities maintenance department costs and on the number of patient-days serviced over the past year. Month January February March April may June July August September October November December (i) (ii) (iii) (iv) (v) surgical incision Costs $37,000 $23,000 $37,000 $47,000 $33,000 $39,000 $32,000 $33,000 $17,000 $18,000 $22,000 $20,000 Of patient-days 3,700 1,600 4,100 4,900 3,300 4,400 3,500 4,000 1,200 1,300 1,800 1,600 Determine the variable cost per patient-day and the fixed cost using the highlow method. What is the equation of the total mixed cost function?Prepare the scatter diagram, clearly showing any outliers. Using the line of best-fit, regularize departments fixed cost per month and the variable cost per patient-day. In view of the departments cost behaviour pattern, which of the two methods appear more appropriate? Explain your answer. -4- Practice Questions (The following questions are to be used for self-importance study sessions) 1. Inventoriable product costs a) hold marketing costs and research and instruction costs b) Include the costs of direct materials, direct labour, and manufacturing overhead used to produce a product ) Include completely the costs of direct materials and direct labour used to produce a product d) Both A and B are correct 2. Manufacturing overhead is a a) Product cost b) Period cost c) corroboratory cost d) Both A and C are correct 3. Direct materials a) be used to trammel total inventoriable product costs b) Are used to determine total manufacturing overhead c) Cannot be on an individual basis and conveniently traced through the manufacturing process to finished goods inventory d) Must not bring part of the finished product 4. a) b) c) d) Which of the following is least accurate about a manufacturing setting?Conversion costs associate to the costs applied to materials that convert it into a finished product. Direct labour and manufacturing overheads makes up conversion costs. When compared to the manufacturing setting, purchases and freight in are a part of inventoriable costs for a merchandiser under US GAAP. Inventoriable product costs are not put down as assets until the product is sold. When ending finished goods inventory is subtracted from the sum of beginning finished goods inventory and cost of goods manufactured, the result is cost of goods sold 5.Cost of goods manufactured during 2006 is $240, WIP inventory on December 31, 2006 is $50. WIP inventory during 2006 decreased 60%. Total manufacturing costs incurred during 2006 amount to a) $xcl b) $165 c) $290 d) $315 -5- 6. You are given the following for the production of office chairs by the company Chairs and More Quantity produced 100 200 300 400 500 600 Total Fixed Costs (JMD$) 10,000 10,000 10,000 10,000 10,000 10,000 Variable cost per unit is $150. The production of 15,000 chairs will cost a) $2,260,000 b) $1,500,000 c) $10,000 d) $25,000 7.Work in process inventory increase $20,000 during 2005. Cost of goods manufactured was $280,000, Total manufacturing costs incurred in 2005 are a) $298,000 b) $262,000 c) $289,000 d) $300,000 8. Wright Company reports production costs for 2006 as follows Direct materials used $375,000 Direct labour incurred $250,000 Manufacturing overhead incurred $400,000 operational expenses $145,000 Wrights period costs and product costs respectively for 2006 are a) b) c) d) $145,000 and $1,025,000 $1,025,000 and $145,000 $545,000 and $975,000 $975,000 and $545,000 End of worksheet 1 -6-