Calculate the production costs incurred in may

Assignment Help Managerial Accounting
Reference no: EM132775118

Problem 1: Calculate the production costs incurred in May for each of the three jobs.

Farm Equipment, Inc., produces tractors and other farm machinery. Each piece of equipment is built to customer specifications. During May, its first month of operations, Farm Equipment, Inc., began working on three customer orders: jobs 1, 2, and 3.

The following transactions occurred during May:

Purchased production materials on account totaling $450,000

Processed material requisitions for the following items:

Job 1 direct materials $77,600
Job 2 direct materials $38,600
Job 3 direct materials $45,000
Indirect materials $87,000

Processed timesheets showing the following:

Job 1 direct labor hours (700 hours) $14,800
Job 2 direct labor hours (550 hours) $11,800
Job 3 direct labor hours (300 hours) $ 6,500
Indirect labor $ 9,700

  • Applied overhead using a predetermined rate of 160 percent of direct labor cost
  • Completed job 1 and transferred it to finished goods
  • Delivered job 1 to the customer and billed her $140,000. (Hint: Two entries are required-one for the cost of the goods and another for the revenue.)

Reference no: EM132775118

Questions Cloud

Find the interest that is paid in the twelveth payment : Find the interest that is paid in the 12th payment. The even payments (that is, 2nd, 4th, 6th, etc.) are in the amount 2R. The odd payments
Calculate the amount that the company will actually receive : The interest rate on the bonds, is 6 percent annually. Calculate the amount that the company will actually receive from the sale of the bonds
Is it really a disruptive innovation : "Disruption theory is in danger of becoming a victim of its own success. Despite broad dissemination, the theory's core concepts have been widely misunderstood.
Calculate the Total pay for Paul and Margaret : Each employee in the team is paid as a bonus percentage of a wage rate of $30 per hour. Calculate the Total pay for Paul and Margaret
Calculate the production costs incurred in may : Calculate the production costs incurred in May for each of the three jobs. Farm Equipment, Inc., produces tractors and other farm machinery.
Discuss different types of risk bias : In 250 words. Discuss the three different types of risk bias and determine a method of minimizing each type of risk bias with an example.
Was shane ryan an opportunity-driven : Was Shane Ryan an Opportunity-driven or Necessity-driven entrepreneur and What was the solution that fiid offered to solve this problem
Explain the essential concepts of recruitment : Specifically focus on the 3 essential concepts of recruitment and select any one of the concepts to discuss. After discussing, explain to the management team.
How much will appear as the carrying amount of the note : In the note amortization schedule before impairment, how much will appear as the carrying amount of the note as of December 31, 2019?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd