Solutions -- Week 4

Solutions -- Week 4 - GNB Problem Solutions –...

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Unformatted text preview: GNB Problem Solutions – Week-by-Week page 1 of 8 WEEK 4 GNB ASSIGNED PROBLEM SOLUTIONS BUAD 250B – FALL 2009 CLS DATES [M-W] DATES [T-Th] TOPICS READINGS ASSIGNMENTS [TO BE COMPLETED BY DATE ASSIGNED] 6 Sep 14 Sep 15 Job-Order Costing Activity-Based Costing Ch. 3 Ch. 8 PR: 3-15, 17 In-class: 3-20 & 25 Intro: Ch. 8 7 Sep 16 Sep 17 Activity-Based Costing Ch. 8 BE: 8-1, 2, 3, 4, 5 PR: 8-13, 15 Case: 3-33—turn-in 1 page handwritten (clear) Intro: Ch. 5 OUT: Team Assignment I Exercise 3-15 1. Because $120,000 of studio overhead was applied to Work in Process on the basis of $75,000 of direct staff costs, the predetermined overhead rate was 160%: Studio overhead applied $120,000 = = 160% rate Direct staff costs incurred $75,000 2. The Lexington Gardens Project is the only job remaining in Work in Process at the end of the month; therefore, the entire $35,000 balance in the Work in Process account at that point must apply to it. Recognizing that the predetermined overhead rate is 160% of direct staff costs, the following computation can be made: Total cost in the Lexington Gardens Project ..................................... $35,000 Less: Direct staff costs ................................................................ $ 6,500 Studio overhead cost ($6,500 × 160%) ............................. 10,400 16,900 Costs of subcontracted work ............................................................. $18,100 With this information, we can now complete the job cost sheet for the Lexington Gardens Project: Costs of subcontracted work ............................ $18,100 Direct staff costs ............................................... 6,500 Studio overhead ................................................ 10,400 Total cost to January 31 ................................... $35,000 GNB Problem Solutions – Week-by-Week page 2 of 8 Exercise 3-17 1. Actual manufacturing overhead costs ..................................... $473,000 Manufacturing overhead cost applied: 19,400 MH × $25 per MH ....................................................................................... 485,000 Overapplied overhead cost ...................................................... $ 12,000 2. Chang Company Schedule of Cost of Goods Manufactured Direct materials: Raw materials inventory, beginning ..................................... $ 20,000 Add purchases of raw materials .......................................... 400,000 Raw materials available for use ........................................... 420,000 Deduct raw materials inventory, ending .............................. 30,000 Raw materials used in production ....................................... 390,000 Less indirect materials ......................................................... 15,000 $375,000 Direct labor .............................................................................. 60,000 Manufacturing overhead cost applied to work in process ....... 485,000 Total manufacturing costs ....................................................... Total manufacturing costs ....
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This note was uploaded on 11/14/2010 for the course BUAD 250B taught by Professor Jackson during the Spring '07 term at USC.

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Solutions -- Week 4 - GNB Problem Solutions –...

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