ICQs - Chapter 5 Questions - MANAGEMENT ACCOUNTING Chapter...

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MANAGEMENT ACCOUNTING Chapter 5 IN-CLASS QUESTIONS (ICQs)
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ICQ #1 5.21 Schedule of Cost of Goods Manufactured, Cost of Goods Sold, Income Statement Canton Ltd. manufactures handbags. Selected account balances for the year ended December 31, 2012, are presented below: Amortization—factory $ 28,500 Beginning direct materials inventory 13,200 Beginning finished goods inventory 65,800 Beginning work-in-process inventory 24,800 Direct labour 88,200 Direct material purchases 98,200 Ending direct materials inventory 16,200 Ending finished goods inventory 52,500 Ending work-in-process inventory 35,200 Factory insurance 8,400 Factory maintenance 25,300 Factory utilities 14,500 General and administrative expenses 62,800 Indirect labour 19,500 Indirect materials 7,800 Sales 482,000 Selling expenses 70,400 REQUIRED A. Prepare a schedule of cost of goods manufactured. B. Calculate the prime cost and conversion cost. C. Prepare a schedule of cost of goods sold. D. Prepare a single-step income statement for Canton Ltd. for the year.
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ICQ #2 5.26 Job Costing, Over- and Underapplied Overhead, Journal Entries Shane's Shovels produces small, custom earth-moving equipment for landscaping companies. Manufacturing overhead is allocated to work in process, using an estimated overhead rate. During April, transactions for Shane's Shovels included the following: Direct materials issued to production $180,000 Indirect materials issued to production 30,000 Other manufacturing overhead incurred 250,000 Overhead allocated 225,000 Direct labour costs 75,000 Beginning and ending work in process were both zero. REQUIRED A. What was the cost of jobs completed in April? B. Was manufacturing overhead underapplied or overapplied? By how much? C. Write out the journal entries for these transactions, including the adjustment.
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ICQ #3 5.27 Job Costing, Underapplied Overhead, Solve For Unknowns Traco manufactures tracked vehicles. Budgeted fixed overhead for the year is $800,000. Overhead is allocated at the rate of 80% of direct labour cost. Overhead was underapplied by $12,000. REQUIRED A. Determine the original budget for direct labour cost. B. What is the total fixed overhead that was allocated for the year? C. Calculate the actual direct labour cost for the year.
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ICQ #4 5.34 Analysis of WIP T Account Jeeter Company uses a job costing system. Overhead is allocated based on 120% of direct labour cost. Last month's transactions in the work-in-process account are shown here: Work in Process Beginning balance $ 48,000 Direct materials 160,000 To finished goods $442,000 Direct labour 120,000 Factory overhead 150,000 Only one job, #850, was still in process at the end of the month. Job 850 was charged with $9,000 in overhead for the month.
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  • Winter '13
  • DouglasKong
  • Accounting, underapplied overhead

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