Managerial Accounting Quiz 1 Essay Example for Free

Administrative Accounting Quiz 1 Essay Parts 1 and 2 10 Points 1. Complete the appropriate response sheet beneath by putting a X under each heading that distinguishes the cost in question. The Xs can be set under more than one heading for a solitary expense. (5 Points) Variable Cost Fixed Cost Direct Materials Direct Labor Manufactu ring Overhead Period Cost Materials costs X X Creation line laborers compensation X X Creation Equipment rental X X Processing plant Building devaluation X X Promoting costs X X 2. An incomplete posting of expenses brought about at Rust Corporation during August shows up underneath: Acquisition of crude materials†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ $ 135,000 Direct labor†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 73,000 Manufacturing plant Utilities†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 11,000 Sales Commissions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 69,000 Administrative Salaries†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 101,000 Indirect Labor†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 89,000 Depreciation of Production Equipment†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 18,000 Indirect Materials†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 10,000 Depreciation of Office Copy Machine†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 5,000 Crude materials stock, beginning†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 97,000 Crude materials stock, ending†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 84,000 Work in process stock, beginning†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 39,000 Work in process stock, ending†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 52,000 Completed products stock, beginning†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 106,000 Completed products stock, ending†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 71,000 a. Set up a Schedule of Cost of Goods Manufactured in great structure. (3 Points) Direct Materials: Starting crude materials stock: $97,000 Include: Purchase of crude materials 135,000 Raw materials accessible for utilize 232,000 Deduct: Ending crude materials stock 84,000 Crude materials utilized underway $148,000 Direct Labor: 73,000 Assembling Overhead: 118,000 All out assembling cost: 339,000 Include: Beginning work in process stock 39,000 378,000 Deduct: Ending work in process stock 52,000 Cost of products fabricated $326,000 b. Figure the Cost of Goods Sold. (2 Points) Completed products stock, beginning$106,000 Include: Cost of products fabricated 326,000 Products ready to move 432,000 Deduct: Finished products stock, finishing 71,000 Cost of products sold $361,000 Administrative Acctg Quiz 2 †Fall 2012 NAME__ _______________________ Parts 3 and 4 10 Points 1. Pence Company is an assembling firm that utilizations work request costing. The organization applies overhead to employments utilizing a foreordained overhead rate dependent on machine-hours. Toward the start of the year, the organization evaluated that it would work 44,000 machine hours and would bring about $176,000 in assembling overhead expense. During the year the accompanying real expenses and hours were caused: Employment A Job B Job C Job D Direct Materials$ 135,000 $ 129,000 $ 98,000 $ 103,000 Direct Labor $ 80,000 $ 85,000 $ 63,000 $ 68,000 Machine Hours 12,000 13,000 8,000 14,000 Number of Units 50 35 60 Circuitous Materials utilized: $ 34,000 Aberrant Labor: $ 63,000 Selling Costs: $134,000 Manufacturing plant Utility Costs: $ 14,000 Manufacturing plant Depreciation: $114,000 Regulatory Salaries $157,000 Required: (5 focuses) a. Process the foreordained overhead rate 176000/44000= 4.00 b. Process the measure of overhead applied to each activity. A.12000*4= 48000 B. 13000*4= 52000 C. 8000*4= 32000 D. 14000*4= 56000 c. Expecting that Jobs A, B, and D were finished during the year, process the all out cost charged to each activity and the unit cost of the item created. A.5660 B.8543 D. 3983 d. Register the parity in Work In Process toward the year's end. 161,000 e. Register the measure of overhead under or overapplied. 176000-161000= 15000 f. Accepting the sum isn't material, compose the diary section required to close the assembling overhead record toward the year's end. Work in Process 161,000 Assembling Overhead161,000 2. Elton Company utilizes the weighted-normal strategy in its procedure costing framework. The organization includes materials toward the start of the procedure in Department M. Change costs were 75% finished concerning the 4,000 units in work in process at May 1 and half complete regarding the 6,000 units in work in process at May 31. During May, 12,000 units were finished and moved to the following division. An examination of the expenses identifying with work in process at May 1 and to creation action for May follows: Materials Transformation Work in process 5/1 $26,200 $19,370 Expenses included during May $26,900 $29,380 Required: Utilizing the weighted-normal technique, decide the Equivalent Units of Production for Materials and Conversion Costs, the Cost per Equivalent Unit for Material and Conversion Cost, and the all out item cost per Equivalent Unit. (5 Points) Equal units of creation Materials Conversion Transferred to next office.. 12,000 Ending work in process (materials: 6,000 units Ãâ€"100% complete; change: 6,000 units Ãâ€" half complete).. 6,000 3,000 Equivalent units of creation 18,000 15,000 Cost for each Equivalent Unit Materials Conversion Total Cost of starting work in process.. 26,200 19,370 Cost included during the period.. 26,900 29,380 Total cost (a) 53,100 48,750 Equivalent units of creation (b) 18,000 15,000 Cost for each proportionate unit, (a) à · (b). 2.95 3.25 Total: $6.20