Solutions+for+Homework+3

Solutions+for+Homework+3 - Exercise 3-1 a. A custom yacht...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Exercise 3-1 a. A custom yacht builder Job-order costing b. Gold Course designer Job-order costing c. Potato chip MFG Process costing d. Business consultant Job-order costing e. Plywood MFG Process costing* f. Soft drink bottler Process costing* g. Film studio Job-order costing h. Firm that supervises bridge construction projects Job-order costing i. MFG fine jewelry Job-order costing j. Made to order clothing factory Job-order costing k. Factory making one personal computer model Process costing l. Fertilizer factory Process costing * Some of the listed companies might use either a process costing or a job-order costing system, depending on the nature of their operations and how homogeneous the final product is. For example, a plywood manufacturer might use job-order costing if it has a number of different plywood products that are constructed of different woods or come in markedly different sizes. Exercise 3-2 Mountain Gearing company has incurred the following costs on Job ES34, an order for 40 gearing wheels to be delivered at the end of the month. Direct Materials: On 3/5, req # 870 was issued for 40 titanium blanks to be used in the special order. The blanks cost $8.00 each. On 3/8, req # 873 was issued for 960 hardened nibs also to be used in the special order. The nibs cost $.60 each Direct Labor: On 3/9, Harry worked from 9am til 12:15 pm on Job ES34. He’s paid $12/hr. On 3/21, Mary Rosas worked from 2:15pm til 4:30 on job ES34. She gets $14/hr. 1.) On what documents would these costs be recorded? 2.) How much cost should have been recorded on each of the document for job es34? 1. The direct materials and direct labor costs listed in the exercise would have been recorded on four different documents: the materials requisition form for Job ES34, the time ticket for Harry Kerst, the time ticket for Mary Rosas, and the job cost sheet for Job ES34. 2. The costs for Job ES34 would have been recorded as follows: Materials requisition form: Quantity Unit Cost Total Cost Blanks 40 $8.00 $320 Nibs 960 $0.60 576 $896 Time ticket for Harry Kerst Started Ended Time Completed Rate Amount Job Number 9:00 AM 12:15 PM 3.25 $12.00 $39.00 ES34 Time ticket for Mary Rosas Started Ended Time Completed Rate Amount Job Number 2:15 PM 4:30 PM 2.25 $14.00 $31.50 ES34 Job Cost Sheet for Job ES34 Direct materials......... $896.00 Direct labor: Harry Kerst............ 39.00 Mary Rosas............ 31.50 $966.50 Exercise 3-3 Logan products computes its predetermined OH rate annually on the basis of direct labor hrs. At the beg of yr, it estimates that its total MFG OH would be $586,000 and the total direct labor would be 40,000 hrs. Its actual total MFG overhead for the year was $713,400 and its actual total direct labor was 41,000 hrs....
View Full Document

This note was uploaded on 08/18/2008 for the course MGMT 30B taught by Professor Tian during the Winter '08 term at UC Irvine.

Page1 / 11

Solutions+for+Homework+3 - Exercise 3-1 a. A custom yacht...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online