+1-415-670-9189
info@expertsmind.com
Determine the budgeted manufacturing overhead rate
Course:- Managerial Accounting
Reference No.:- EM131151142




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Managerial Accounting

QUESTION 1

You have been employed as an entry-level management accountant for a little under a year. You suspect that your immediate supervisor is involved in a significant fraud involving diverting of company assets to personal use. Briefly discuss the steps you might take to resolve this dilemma and use a real world example (not hypothetical) to support your discussion.

Question 2

Lismore Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted:

      Work-in-process inventory (January 1)             $ 140,400

      Work-in-process inventory (March 31)                171,000

      Finished goods inventory (January 1)                  540,000

      Finished goods inventory (March 31)                  510,000

      Direct materials used                                           378,000

      Indirect materials used                                           84,000

      Direct manufacturing labor                                  480,000

      Indirect manufacturing labor                               186,000

      Property taxes on manufacturing plant building    28,800

      Salespersons' company vehicle costs                     12,000

      Depreciation of manufacturing equipment          264,000

      Depreciation of office equipment                        123,600

      Miscellaneous plant overhead                              135,000

      Plant utilities                                                          92,400

      General office expenses                                       305,400

      Marketing distribution costs                                  30,000

Required:

a. Prepare a cost of goods manufactured schedule for the quarter.
b. Prepare a cost of goods sold schedule for the quarter.
c. Indentify inventoriable and period costs.
d. Of what value is the schedule of cost of goods manufactured? How does it tie into the income statement? Discuss and use examples to support your discussion.

Question 3

The Dougherty Furniture Company manufactures tables. In March, the two production departments had budgeted allocation bases of 4,000 machine-hours in Department 100 and 8,000 direct manufacturing labor-hours in Department 200. The budgeted manufacturing overheads for the month were $57,500 and $62,500, respectively. For Job A, the actual costs incurred in the two departments were as follows:

                                                          Department 100   Department 200

   Direct materials purchased on account $110,000             $177,500

   Direct materials used                              32,500                   13,500

   Direct manufacturing labor                     52,500                   53,500

   Indirect manufacturing labor                  11,000                     9,000

   Indirect materials used                              7,500                     4,750

   Lease on equipment                                16,250                     3,750

   Utilities                                                     1,000                     1,250

Job A incurred 800 machine-hours in Department 100 and 300 manufacturing labor-hours in Department 200. The company uses a budgeted overhead rate for applying overhead to production.

Required:

a. Determine the budgeted manufacturing overhead rate for each department.

b. Prepare the necessary journal entries to summarize the March transactions for Department 100.

c. What is the total cost of Job A?

d. What factors should be considered in selecting an allocation base to be used in computing the budgeted overhead rate? Discuss and use examples to support your discussion.

Question 4

a. Silver Spoon Incorporated is a manufacturer of kitchen utensils. It produces all of its products in one department. The information for the current month is as follows:

Beginning work in process                                              37,500 units

      Units started                                                              55,000 units

      Units completed                                                        75,000 units

      Ending work in process                                             14,500 units

      Spoilage                                                                       3,000 units

 

      Beginning work-in-process direct materials                     $25,000

      Beginning work-in-process conversion                           $ 10,000

      Direct materials added during month                            $113,750

      Direct manufacturing labor during month                       $40,020

Beginning work in process was 25% complete as to conversion. Direct materials are added at the beginning of the process. Factory overhead is applied at a rate equal to 37.5% of direct manufacturing labor. Ending work in process was 60% complete. All spoilage is normal and is detected at the end of the process.

Required:

a. Prepare a production cost worksheet if spoilage is recognized and the weighted-average method is used.

b. Why is cost accumulation easier under a process costing system than under a job order costing system? Discuss and use examples to support your discussion.

Answered:-

Verified Expert

The assignment has been prepared in the excel sheet . it clearly show the calculation as required in the question. in this assignment cost sheet, calculation of budgeted overheads, process costing, job costing etc have been done as per the the requirements or figure specified.



Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Managerial Accounting) Materials
At the beginning of last year, creative productions set direct labor standards of 2 hours at $25 per hour for each product produced. during the year, 1,700 direct labor hours
ACC00724 (Accounting for Managers). A local restaurant is noted for its fine food, as evidenced by the large number of customers. A customer was heard to remark that the secr
Budgeting is an unnecessary burden on many managers. It takes time away from important day-to-day problems." Do you agree? Explain. Please write and a half page by making su
Compute the unit manufacturing costs of each product under a traditional (i.e. volume based) costing system using "direct labor cost" as the allocation basis. 2. Compute the u
Assuming 4,800,000 copies were made during the year, 2,500,000 for sales and 2,300,000 for administration, calculate the copy department costs allocated to sales and administr
Assume that Banc One receives a primary deposit of $1 million. The bank must keep reserves of 20 percent against its deposits. Prepare a simple balance sheet of assets and l
What would you include in a job description for a new cashier? How about a sales person? What is included on your job description? Are there functions you perform that are n
Why does the US Army Corp of Engineers worry about cost allocations? Aren't they a branch of the US Federal Government? Why does it matter whether or not costs are allocated