The product is moved through two departments, mixing and bottling. manufacturing overhead as journal entry is record of the date of transaction and the account Calculate the total cost and the unit cost for each of the 2,000 units produced by Job 1512. They were as follows: Hamilton's ending work in process balance is. expenditures for a given period and their difference gives us the What other two cost flow assumptions could be used? Get solutions . 20 terms. Karol Ring, the production manager, has been concerned with cost overruns during July in the frames department, which produces the bicycle frames. Work in process, August 1 (30,000 pints): Units started in production during the month, 72,000; units completed and transferred, 52,800; and units in process at the end of the month (100% complete as to materials; 60% complete as to conversion), 19,200. Why is the amount of underapplied (overapplied) manufacturing overhead different from part (2)? The actual overhead for the month of April was $50,000. Units in process at the beginning of the month (100% complete as to materials; 30% complete as to conversion), 12,000; units started during the month, 48,000; and units in process at the end of the month (100% complete as to materials; 40% complete as to conversion), 24,000. Group project D In groups of 3 or 4 students, write a paper on the topic, “How scientific is the allocation of joint costs to products?” Prepare the paper on a computer and prepare and edit several drafts before turning in the final paper. Accounting Principles: A Business Perspective. The equivalent units of production for materials and conversion costs using the average cost method. ➢ Real world question Does The Coca-Cola Company use a process cost system or a job costing system in its bottling plants? Assume that there were 6,000 units in the beginning inventory and 20,000 in the ending inventory, and that 80,000 units were completed and transferred out of Department D. What are the equivalent units for the period using the average cost method? Managerial Accounting Chapter 3. Part II: Problems Number of units completed and transferred to finished goods inventory. “We would all be in trouble if plant management finds out. © 2003-2020 Chegg Inc. All rights reserved. Managerial accounting chapter 1. At the beginning of the current year, Hamilton Manufacturing had jobs totaling $25,000 in process. Determine the amount of underapplied or overapplied overhead for the year. $90,000 to $100,000. “No way!” exclaimed the Stitching Department manager. B. follows: Hence, the predetermined overhead is increased to $5 per machine The same rate had been used since the company began operations. Managerial accounting chapter 2. System for assigning costs to products/services that differ in the amount of materials labor and OH requires. If overhead is applied using the predetermined overhead rate, then overhead would be. Calculate the predetermined overhead application rate for the year. The company has been using a plantwide predetermined overhead rate based on direct labor hours. Direct materials purchased in April amounted to $150,000. However, all of the direct materials necessary to do the entire job were charged to each job as soon as the job was started. What happens to the underapplied (overapplied) manufacturing overhead from part (2) if the estimated total amount of the allocation base is changed to 40,000 machine-hours and everything else remains the same? Use a separate Work in Process Inventory account for each job. Problem 1Q. Information contained in the memo should include: Using the Internet—A view of the real world. On July 1, the frames department had 6,000 units in its work in process inventory. Chapter 1: Nature of Managerial Accounting and Costs. Managerial accounting ch 2 test one formulas and problems. The Excel worksheet form that appears below is to be used to recreate part of the example relating to Turbo Crafters that appears earlier in the chapter. 4. Over- or under applied overhead is debited or credited to Cost of Goods Sold. Although the company has grown rapidly, it has yet to show a profit. The heading of the memorandum should contain the date, to whom it is written, from whom, and the subject matter. ➢ Show the differences between computing equivalent units of production using the average cost method and FIFO cost method (Appendix 19A). How would you recommend that July’s costs be assigned to the units produced?How would this differ from the present method? Assume that Mahoney uses separate departmental overhead rates based upon direct labor hours for assembly and machine hours for finishing. Get solutions . If your worksheet is operating properly, the predetermined overhead rate should now be $5.00 per machine-hour. The following information is provided for the year: The budgeted overhead used to calculate the predetermined rate must have been. All labor costs were the same rate per hour for April for all laborers. The following information was extracted from the job-order cost sheet for Job 9574: Budgeted overhead for the year was $35,000 based on 500 direct labor hours. Managerial Accounting Chapter 3 Vocab. Does the manager differentiate between normal and abnormal spoilage? Did it change? Manufacturing overhead was under applied by $10,000 (in step 2). Work in process inventory, March 1, 3,000 (units equal cases): Manufacturing overhead (1,500 machine-hours at $6 per machine-hours), Manufacturing overhead applied (13,800 machine-hours). and determining the costs of finished and partially finished

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