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WK 1: COST OF GOODS SOLD Direct Materials (DM) = $100 Direct Labor (DL) = $200 Answered in Question Overhead (OH) = $230 Answered in Question Total Manufactured Cost = $530 Beginning Raw Materials Inventory $10 (+) Purchases $120 Raw Materials Avail for Use $130 (-) End Raw Materials Inv. $30 (=) Raw Materials Used In Prod. $100 Sales Revenue $950 (-) Cost of Goods Sold (Product Cost) (CGM) $560 (=) Gross Margin (CGM) $390 Beginning Work in Progress Inventory $70 (+) Current Month Manufactured $530 Total Manufactured Cost $600 (-) End Work In Progress $40 (=) Cost of Goods (Manufactured) (CGM) $560 Sales Revenue $950 (=) Cost of Goods Sold (CGM&S) $580 (=) Gross Margin $370 (-) Period Cost Selling Cost $100 General and Admin Cost $140 (=) Net Operating Cost/Income $130 Beginning Finished Goods Inventory $100 (+) Cost of Goods Manufactured $560 Goods Available for Sale $660 (-) End Finished Goods Inventory $80 (=) Cost of Goods Sold (CGM&S) $580 (=) Cost of Goods Sold (CGM&S) $580 (=) Gross Margin $370 (=) Net Operating Income $130 WEEK 1: HI-LO METHOD Step 1 Chg $ X Y (Divide) Chg Units Machine Hours Indirect Mfg. Labor Costs High Observation -Week 8 Low Observation -Week 3 Step 2 Y = A + B(X) Fixed Cost Element = Total cost -Variable Cost Element Y = Money High and Low Variable A= Fixed Monthly Maint Cost #DIV/0! B = Variable Cost #DIV/0! X = Units High and Low Variable Step 1 High (-) Low (=) Sum Total Money $- $- $- #DIV/0! (=) B Value Units 0 0 0 High Y = A (+) B (X) Sum B(X) $- #DIV/0! #DIV/0! 0 #DIV/0! Formula #DIV/0! #DIV/0! #DIV/0! Low Y = A (+) B (X) Sum B(X) $- #DIV/0! #DIV/0! 0 #DIV/0! Formula #DIV/0! #DIV/0! #DIV/0! WEEK 2: Job Order-Process Costing MASTER FORMULA MASTER FORMULA Problem Problem S1: Units to Account For: Units Percentage Completed S1: Units to Account For: Units Percentage Completed Beginning WIP Inventory 400 Direct Materials 80% Beginning WIP Inventory 700 Direct Materials 80% (+) Units Started 6,000 15% (+) Units Started 7,200 25% (=) Units to Account For 6,400 Units (Step 1 & 2 Must Match) (=) Units to Account For 7,900 Units (Step 1 & 2 Must Match) S2: Account for Them Units Percentage Completed S2: Account for Them Units Percentage Completed Completed & Shipped Out 5,600 Direct Materials 70% Completed & Shipped Out 6,400 Direct Materials 80% WIP Ending Inventory 800 30% WIP Ending Inventory 1,500 70% (=) Units to Account For 6,400 Units (Step 1 & 2 Must Match) (=) Units to Account For 7,900 Units (Step 1 & 2 Must Match) S3: Equivalent Units Direct Materials S3: Equivalent Units Direct Materials Completed & Shipped Out 5,600 5,600 Completed & Shipped Out 6,400 6,400 WIP Ending Inventory 560 240 WIP Ending Inventory 1,200 1,050 (=) Units to Account For 6,160 5,840 (=) Units to Account For 7,600 7,450 S4: Get the $$ Amounts Direct Materials Total S4: Get the $$ Amounts Direct Materials Total Spent $ Last Month $6,900.00 $2,500.00 $9,400.00 Spent $ Last Month $9,100.00 $5,400.00 $14,500.00 Spent $ This Month $112,500.00 $112,500.... View Full Document

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