ACC569 Week_2_solutions - 3.57 (50 min) Job costs in a...

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Unformatted text preview: 3.57 (50 min) Job costs in a service company Material Inventory Balance 6/1 (given) 920 16 Indirect Materials Purchases (given) 116 314 Requisition Balance 6/30 706 Work-in-Process Inventory (a) Balance 6/1 576 504 Job P-20 (c) (b) Job P-20 170 850 Job P-43 (e) (d) Job P-43 608 (f) New Job P-45 556 Balance 6/30 556 Finished-Goods Inventory Balance 6/1 ($392 + $158) 550 (c) Job P-20 504 550 Sold (e) Job P-43 850 Balance 6/30 1,354 a. Direct Material + Direct Labor + Applied Overhead = $174 + $32 + $64 + $84 + [150% + ($64 + $84)] = $576 . b. To complete Job P-20: $68 Direct Labor + ($68 x 150%) Applied Overhead = $170 . c. Transfer to Finished Goods: Job P-20 Beginning Inventory Cost + Current Cost = $174 + $64 + 150%($64) + $170 = $504 . d. To complete Job P-43: $108 Material + $200 Direct Labor + (150% x $200) Applied Overhead = $108 + $200 + $300 = $608 . e. Transfer of Job P-43: Beginning Inventory Cost + Current Cost = [$32 + $84 + 150%($84)] + [$108 + $200 + 150%($200)] = $850 . f. New Job Cost = Current Charges to WIP less Current Charges for Jobs P-20 and P-43: = Current Material + Direct Labor + Overhead Job P-20 Current Cost Job P-43 Current Cost = $314 + $408 + $150%($408) $170(b)* $608(d)* = $556 . *These letters refer to solution parts (b) and (d) above. 4.49 (60 min) Computing product profitability a. Answer is in the last column labeled Rate per Unit of Measure. (A) (B) (=A/B) Rate per Activity Activity Unit of Activity/Resource Cost Volume Unit of MeaMeasure 1. Unit Level 1.1 Materials for Product A $60,000 1,000,000 units $0.06 1.2 Direct labor for Product A $20,000 2,000 direct labo $10.00 1.3 Materials for Product B $80,000...
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This note was uploaded on 12/29/2009 for the course ACC569 ACC569 taught by Professor Alicebergmann during the Spring '08 term at University of Phoenix.

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ACC569 Week_2_solutions - 3.57 (50 min) Job costs in a...

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