Course Exam - ACCO 503 Managerial and Financial Accounting.docx

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Chapter 8 / Exercise 117
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Managerial & Financial Accounting (ACCO 503)Course Exam Chapter 2: Job Order Costing1. Larry’s Lawn Services provides custom landscaping for homes and businesses and uses job order costing to capture the cost of its landscaping jobs. There are no jobs in process at the beginning of May. Listed below are data concerning the three landscaping jobs conducted during May. SouthsideOceanviewRocky HeightsDirect materials$5,450$7,635$6,480Landscaper labor costs$4,810$5,980$5,525Landscaper hours749285Overhead costs are applied to jobs based on landscaper hours, and the predetermined overhead rate is $60 per landscaper hour. The Southside job is the only incomplete job at the end of May. Actual overhead for the month was $15,400. (a)Determine the cost of each job.(b)Indicate the balance of the Landscape Contracts in Process account at the end of May.(c)Calculate the ending balance of the Operating Overhead account for May.(d)During May, Larry is approached by the owner of Mountain Estates who would like to contract with Larry’s company. Larry is working to prepare the bid for Mountain Estates and has the following information: Direct materials, $10,450 and Landscaper hours, 125hours. Analyze the financial information provided for Southside, Oceanview and Rocky Heights and help Larry complete his bid by estimating the total cost of the Mountain Estates job. 1
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Elementary and Intermediate Algebra
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Chapter 8 / Exercise 117
Elementary and Intermediate Algebra
Tussy/Gustafson
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2
SouthsideOceanviewRocky HeightsDirect Material $5,450.00 $7,635.00 $6,480.00 Landscape labor costs$4,810.00 $5,980.00 $5,525.00 Applied Overhead (Landscape hours x $60per hour)$4,440.00 $5,520.00 $5,100.00 Total Cost$ 14,700.00$ 19,135.00 $ 17,105.00 b) Balance of the Landscape Contracts in Process account at the end of MayBalance in service contracts in processaccount $ 14,700.00 * Southside is the only job not completedc) ending balance of the Operating Overhead account for MayActual overhead$ 15,400.00 Applied overhead ($4,440.00 + $5,520.00$5,100.00)$ (15,060.00)Balance in operating overhead account(overapplied)$ 340.00 d) estimate the total cost of the Mountain Estates jobDirect material$ 10,450.00Landscape Labor costs ($65 x 125 hr)$ 8,125.00Operating Overhead (125hrs x $60)$ 7,500.00Total Estimated costs $ 26,075.00*Labor hours for Southside: 74Labor hours for Oceanview: 92Labor hours for Rocky Heights: 85Chapter 3: Process Costing3
4. The Sanding Department of Kayden Company has the following production and cost data for November. ProductionCosts1. Started and completed 9,000 units.Beginning work in process$ -0-2. Started 3,000 units that are 75%Materials56,250completed at November 30.Labor123,750Manufacturing Overhead45,000Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Kayden Company uses the FIFO method to compute equivalent units. (a)Determine the equivalent units of production for (1) materials and (2) conversion costs.(b)Compute unit costs and show the assignment of manufacturing costs to units transferredout and in work in process. (c) Repeat parts (a) and (b) above, if beginning work in process consists of 1,000 units valued at $10,325 ($4,800 are materials). The units are 40% complete as to conversion costs. Materials costs are unchanged, labor costs are $125,669 and manufacturing overhead costs are $49,000. Note:

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