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Salma Sweet manufactures ice cream to be distributed around the restaurants in Yanbu. Some of its costs from the current year include: In addition, the following information is available at the end of the year 1. 2. 40% of the insurance expenses is for factory building and the remaining for office building 3. Out of the total utilities expenses, 55% is allocated for factory building and the remaining for office building. 4. 60% of petrol/gasoline expenses is used in office buildings and the remaining amount is used in factory buildings. Required: a. Prepare a schedule of cost of goods manufactured for the company. b. Prepare the company income statement. Question 2 Kids Zone is a manufacturing Company in Jeddah. It produces toys in large quantities and supplies them: to all shops in Rlyadh and Jeddah. The company monthly costs and expenses associated with its production are listed as follows: Additional information: a. 70% of the rent expense is for factory and the remaining is used for administration office b. Utility expense for factory usage is 60% and 40% for administration building Required: 1. Prepare a cost of zoods manufactured schedule for the month of lanuary 2018. 2. Prepare an income statement for the month ended 31 January 2018 , PEOCESS COSTING quertion 2 Ex. ABC Company had the following balances at December 31, 2016, During 2017, company completed the following transactions:- A. ACCUMULATE MANUFACTURING COST 1. Purchased material On January 15, 2017 ABC purchased direct material of $350,000 and indirect material of $17,000 on account. 2. Accounting for labor During 2017, ABC incurred a labor cost of $197,000. It is determined that direct labor is $169,000 and $28,000 for indirect labor. 3. Accounting for manulacturing overhead. During 2017ABC incurred the following overhead costs. Factory Degreciation $10,000, Factory utilities 57,000 , Factory insurance $6,000 and Factory property taxes $5,000 a5C1GNEE MANUFACTURING COST on December 31, 2017, it was determined that the company used direct material of $355,000 and indirect material of $17,000. ABC Co. uses direct labor cost to CALCULATE EREDFTLRMINED OVERHEAD RATE for manufacturing overhead cost. It is estimated in 2016 that total overhead cost for 2017 will be $68,000 and estimated direct labor cost of 5170,000 . CALCULATE PREDETERMINED ONERHEAD RATE: C. ASSIGNED COST TO FINISHED GOODS At the end of 2017, ABC co incurred the following: - E3-13 The Welding Department of Thome Company has the following production and manutacturing cost data for February 2014. All materials are added at the beginaing of the process. Instiuclions Prepare a production cost report for the Welding Department for the month of Februen: E3.20 The Welding Department of Majestic Company has the following production and manufacturing cost report for February , 2014 All materials are added at the beginning of the process. Losstrucrions Prepare a production cost repont for the Weiding Department for the month of February. Transferred.in costs are considered materials costs. P3-5A Morse Company manufactures basketballs. Materials are added at the beginning of the production process and conversion costs are incurred uniformly. Production and cost data for the month of July 2014 are as follows. 5 Instruction Prepare the production cost report for Morse Company for July 2014. Puzzle Me is a company that recycles calendars into jigsaw puzzles. The Assembly Dept will opply glue to cardboard and then press a calendar page onto the cardboard. The cutting department cuts the calendar board into puzzle pieces and packages the puzzles in a box. The box is then moved to the finished goods store. During October the company incurred the following costs: Instruction Prepare the production cost report for Assembly department for October, 2016 E4-5 Shady Lady sells window coverings (shades, blinds, and awning: to both commercial and residential customers. The following information relaies to its budgeted operations for the current vear: Ine controller, Pegiy Kingman, is concerned about the residential product line. She cannot understand why this line is not more profitable giten that the installations of window coverings are less complex for residential customens. In addition, the residential client base resides in close proximity to the company office, so travel costs are not as expensive on a per client visit for residential customers. As a result, she has decided to take a closer look at the oserhead costs assigned to the two product lines to determine whether a more accurate product costing model can be developed. Here are the three activity cost pools and relaied information she developeds Expected tise of Const Drivwer nor Produart Instructions (a) Compute the activity-based overhed rates for eoch of the three cost pools, and determine the overhead cost assigned to each prodact line. (b) Compute the operating income for each product line, using the activity-based oserhead rates. (c) What do you believe Peggy Kingman should do? for impleencoting activity hased contay. The partsen apoe to use neat yean budgelad to develop thie comparbon. Instructions (b) (1) Uing activiry.bured con-ing, jecpure a achectult showing the coingatations of the activity boied overhead nates fper cont ditwer). based on the use of the cort dainetr. tractitional cortitiz and ABC Qutation 2 timwer Hin of ithe Mhisols medel. 1. 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