Assignment help , Managerial Accounting

Excercise 2-5
Granger products had the following transactions for the just completed month. The company had no beginning inventories.

a)$75,000 in raw materials were purchased for cash.
b) $73,000 in raw materials were requisionted for use in production. Of this amount, $67,000 was for direct materials and the remainder was for indirect materials.
c) Total labor wages of 152,000 were incurred and paid. Of this amount, 134,000 was for direct labor and the remainder for indirect labor.
d) additional manufacturing overhead costs of 126,000 were incurred and paid.
e) manufacturing overhead costs of 178,000 were applied to jobs using the company''s predetermined overhead rate.
f) all of the jobs in progress at the end of the month were completed and shipped to customers.
g) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.

Required:
1) Post above transactions to T-Accounts
2) Determine the cost of goods sold for the period.

Excercise 2-7
Cretin Enterprises uses a predetermined overhead rate of $21.40 per direct labor-hour. this predetermined rate was based on a cost forumla that estimated $171,200 of total manufacturing overhead for an estimated activity level of 8,000 direct labor hours.

The company incurred actual total manufacturing overhead costs of 172,500 and 8,250 total direct labor hours during the period.

1) Determine the amount of underapplied or overapplied manufacturing overhead for the period
2) Assuming that the entire amount of the underapplied or overapplied overhead is closed out to Cost of Goods Sold, what would be the effect of the underapplied or overapplied overhead on the company''s gross margin for the period?

Posted Date: 9/26/2012 11:20:34 PM | Location : United States







Related Discussions:- Assignment help , Assignment Help, Ask Question on Assignment help , Get Answer, Expert's Help, Assignment help Discussions

Write discussion on Assignment help
Your posts are moderated
Related Questions
The collection policy of a firm is intend at timely collection of overdue amount and comprises of the subsequent. a.      Monitoring the state of debtors (account receivable)

1. Explain the modern control methods with examples. 2. What are the reports produced for performance measurement? Demonstrate.

SSI, a meat/burger/chicken processing manufacturing plant loacted in Idaho, USA prepares

The case of variable quantity discounts In practice, suppliers may offer different discounts for different quantities purchased. For illustration:    Segment        Quantity

Factory Layout The first stage of implementing the JIT manufacturing techniques is to rearrange the factory floor away from the batch production functional layout towards a pro

State the price determination under the market condition The price determination under the following market condition is as follows: 1) Pure competition: in this situation

Alternative performance measures There are various measures that can be used to measure performance of a decentralized company. The major ones are: •    Return on Investmen

M/s Sunrise Industries estimates its net cash requirement at Rs. 20 million for the subsequent year. Opportunity cost fund is 15 percent per annum of the Companies. The company wil

Question 1: (a) Use indifference curves to distinguish between income and substitution effects. (b) Hence, using the above techniques explain why the demand curve slope down

Determine the Price determination process 1) Estimating the demand for the product: the first step in determining the price of a new product is to estimation the anticipated