Bumbling Bamber Barns (BBB) produces and sells canned chicken a la king in response to specific...
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Bumbling Bamber Barns (BBB) produces and sells canned chicken a la king in response to specific orders. Summary data for the whole year follow. (The numbers are unrealistically small to simplify the computations so we can better focus on the concepts.) BBB produced 100 cases of chicken a la king, and sold 80 cases. They expected to produce 90 cases. BBB allocates manufacturing overhead based on chicken boning ladies' labor hours, and it should take 1hours per case. BBB predicted they would incur $6,075 of manufacturing overhead last year. BBB paid sales commissions of $1 per case, and executive salaries amount to $100. BBB has no beginning inventories. REQUIRED: A. Under actual costing, make the journal entries for the following summaries of the transactions that occurred throughout the year, and trace the cost flows through the T- accounts. 1) Sales commissions and executive salaries paid. 2) Invoices show that BBB purchased $6,000 of chicken and $100 of salt. (The saline content of the raw chicken varies, depending on the type of feed they ate.) 3) Material requisitions show that workers used $5,500 of chicken and $50 of salt. 8) 9) 7) 5) 6) Time cards show that the chicken-boning ladies worked 200 hours, while the janitors worked 20 hours. These hourly workers earn wages of $20 and $10 per hour. respectively. BBB received a $2,150 electric bill for the plant. The plant cost $91,125, 10 years ago. BBB depreciates the plant using the straight- line method, over 25 years, with no salvage value. On Jan. 1,BBB purchased a new chicken conveyor belt for $3,550. BBB depreciates the conveyor belt over a 10-year life, with no salvage value. BBB allocates manufacturing overhead. Workers finish all production - there is no ending WIP inventory. BBB sells 80 cases of "king" at $220 each. B. Material Inventory COGS MOH WIP Wages Payable How would the above analysis change under normal costing? FG Bumbling Bamber Barns (BBB) produces and sells canned chicken a la king in response to specific orders. Summary data for the whole year follow. (The numbers are unrealistically small to simplify the computations so we can better focus on the concepts.) BBB produced 100 cases of chicken a la king, and sold 80 cases. They expected to produce 90 cases. BBB allocates manufacturing overhead based on chicken boning ladies' labor hours, and it should take 1hours per case. BBB predicted they would incur $6,075 of manufacturing overhead last year. BBB paid sales commissions of $1 per case, and executive salaries amount to $100. BBB has no beginning inventories. REQUIRED: A. Under actual costing, make the journal entries for the following summaries of the transactions that occurred throughout the year, and trace the cost flows through the T- accounts. 1) Sales commissions and executive salaries paid. 2) Invoices show that BBB purchased $6,000 of chicken and $100 of salt. (The saline content of the raw chicken varies, depending on the type of feed they ate.) 3) Material requisitions show that workers used $5,500 of chicken and $50 of salt. 8) 9) 7) 5) 6) Time cards show that the chicken-boning ladies worked 200 hours, while the janitors worked 20 hours. These hourly workers earn wages of $20 and $10 per hour. respectively. BBB received a $2,150 electric bill for the plant. The plant cost $91,125, 10 years ago. BBB depreciates the plant using the straight- line method, over 25 years, with no salvage value. On Jan. 1,BBB purchased a new chicken conveyor belt for $3,550. BBB depreciates the conveyor belt over a 10-year life, with no salvage value. BBB allocates manufacturing overhead. Workers finish all production - there is no ending WIP inventory. BBB sells 80 cases of "king" at $220 each. B. Material Inventory COGS MOH WIP Wages Payable How would the above analysis change under normal costing? FG
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Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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