ACC
ACC_206_Week_Three_Assignment_WP

ACC_206_Week_Three_Assignment_WP - A ACC 206 Week Three...

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A ACC 206 Week Three Assignment Please complete the following five exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button. 1. Overhead application: Working backward The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional information is presented for your review: Division A Division B Actual machine hours 22,500 ? Estimated machine hours 20,000 ? Overhead application rate $4.50 $5.00 Actual overhead $110,000 ? Estimated overhead ? $90,000 Applied overhead ? $86,000 Over- (under-) applied overhead ? $6,500 FIND THE UNKNOWNS FOR EACH OF THE DIVISIONS. Division A Estimated overhead = Estimated hour x OAR = 20000 x 4.5 = $90000 Overhead applied = 22500 x 4.5 = $101250 Underapplied of overhead = 101250 - 110000 = $(8750) Division B Actual overhead = 86000 - 6500 = $79500 Estimated hour = 90000 / 5 = 18000 hours Actual machine hour = 86000/5 = 17200 hours 2. Computations using a job order system General Corporation employs a job order cost system. On May 1 the following balances were extracted from the general ledger;
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A Work in process $ 35,200 Finished goods 86,900 Cost of goods sold 128,700 Work in Process consisted of two jobs, no. 101 ($20,400) and no. 103 ($14,800). During May, direct materials requisitioned from the storeroom amounted to $96,500, and direct labor incurred totaled $114,500. These figures are subdivided as follows: Direct Materials Direct Labor Job No. Amount Job No. Amount 101 $5,000 101 $7,800 115 19,500 103 20,800 116 36,200 115 42,000 Other 35,800 116 18,000 $96,500 Other 25,900 $114,500 Job no. 115 was the only job in process at the end of the month. Job no. 101 and three "other" jobs were sold during May at a profit of 20% of cost. The "other" jobs contained material and labor charges of $21,000 and $17,400, respectively. General applies overhead daily at the rate of 150% of direct labor cost as labor summaries are posted to job orders. The firm's fiscal year ends on May 31. Instructions: a. Compute the total overhead applied to production during May. 171750 b. Compute the cost of the ending work in process inventory. 124500 c. Compute the cost of jobs completed during May. 293450 d. Compute the cost of goods sold for the year ended May 31. 109400
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