ACC2020 Managerial Accounting Spring 2021 At the beginning of the month on November 1, Work In Process Inventory and Finishod Goods Inventory had the following balancos: VI $58,145 Cor Job 150) Finished Goods $92 200 Problems Show all your computations 1. [10 pts) Product Cost vs Period Cost Tracy Corporabon, maker of jelly, incurred the following types of costs during the year. Classity each cost as either a Product cost or a Penod Cost by marking an "X" in the appropriate column Product Period During the month of November, Jabe 151 and 159 were started Direct Materials and Direct Labor added to jobs during November were as follows: Job 150 Inb 151 Job 152 Direct Materials $34.56 $43.400 $9,500 Direct Labor 12.360 16,830 3,270 Overhead is applied to production at the rate of 90% of direct labor dollars. At the end of the month, Johs 150 and 151 were completed Ioh 150 is the only job sold during the month Instructions a Frepare a bnet job-order cost sheet for each of the three jobs. Round al amounts to the nearest whole dollar. (For each job, you'll need to start with the beginning balance, add the costs for the month including the amount of applied overead, and come up with the total costs for each ob as of the end of November, prior to any disposition 1 Sugar used in the production process 2 were for workers who operitelling equipment to put the jelly intojas 3 Sales COMISIONI 4 Safety googles and flows for production workers s Research and development costs Salaries of production supervsors 7 Depreciation on the corporate headquarters building & Travel expenses for sales molt 9 Electricity costs for the factory 10 Depreciation on equipment word to crush fruit in making the city b. Calculato the ending balance of Work-In-Process Inventory as of November 30 Calculate the ending balance of Finished Goods Inventory as of November 30. . 3. (18 pts) Process Costing using Normal Costing Micic Corporation produces strawberry gelato. Output is measured in quarts. Micc uses the weighted average method During ty, Micig had the following production data for its first department Units Units in process as of July 1, 70% complete 24.000 quarts Units completed and transtored out 193 000 quarts Units in process as of July 31, 80% complete 41,800 quarts Costs Work-In-Process Inventory as of July 1 $167,000 Direct material purchased in July $110,000 Direct materialised in July $194 300 Direct labor added in July $ 51.200 Applicd averhead $203,700 Actual overhoad $210,900 Required: a. Using the weghted average method, calculate the equivalent units of production for July 4. (25 pts) Standard Costing: Materials Variances Heyer, Inc. manufactures a product with the following unit standard costs for material and labor. Direct materials 7.0 lbs. $8.50) 559.50 Direct labor(1 8 hrs $1600) 27.00 Actual information for the month of October Production 72,000 units Direct materials purchased 460 000 bs SS.DVD Direct materials used 520.000 6 Direct labor 82,000 hrs. $14.00hr. Recuit a Compute the matcrials price variance and materials usage variance and be sure to indicate whether cach is tavorablc (F) or unfavorablc (U) b Indicate who in the company is responsible for each variance c. Provide an explanation for each variance, explaining what could cause it to be favorable or unfavorable based on whether the vanance you computed is tavorable or untavorable) b. Calculate the unit cost for July (Round your answer to 2 decimal places) d Prepare the journal entry to record the purchase of materials C Calculate the cost of units completed and transferred out e. Prepare the journal entry to record the issuance of the materials used in production d Calculate the cost of ending Work-In Process Inventory as of July 31 (Round your answers to the ncarest wholc dollar) f Prepare the journal entry to close the variance accounts ACC2020 Managerial Accounting Spring 2021 At the beginning of the month on November 1, Work In Process Inventory and Finishod Goods Inventory had the following balancos: VI $58,145 Cor Job 150) Finished Goods $92 200 Problems Show all your computations 1. [10 pts) Product Cost vs Period Cost Tracy Corporabon, maker of jelly, incurred the following types of costs during the year. Classity each cost as either a Product cost or a Penod Cost by marking an "X" in the appropriate column Product Period During the month of November, Jabe 151 and 159 were started Direct Materials and Direct Labor added to jobs during November were as follows: Job 150 Inb 151 Job 152 Direct Materials $34.56 $43.400 $9,500 Direct Labor 12.360 16,830 3,270 Overhead is applied to production at the rate of 90% of direct labor dollars. At the end of the month, Johs 150 and 151 were completed Ioh 150 is the only job sold during the month Instructions a Frepare a bnet job-order cost sheet for each of the three jobs. Round al amounts to the nearest whole dollar. (For each job, you'll need to start with the beginning balance, add the costs for the month including the amount of applied overead, and come up with the total costs for each ob as of the end of November, prior to any disposition 1 Sugar used in the production process 2 were for workers who operitelling equipment to put the jelly intojas 3 Sales COMISIONI 4 Safety googles and flows for production workers s Research and development costs Salaries of production supervsors 7 Depreciation on the corporate headquarters building & Travel expenses for sales molt 9 Electricity costs for the factory 10 Depreciation on equipment word to crush fruit in making the city b. Calculato the ending balance of Work-In-Process Inventory as of November 30 Calculate the ending balance of Finished Goods Inventory as of November 30. . 3. (18 pts) Process Costing using Normal Costing Micic Corporation produces strawberry gelato. Output is measured in quarts. Micc uses the weighted average method During ty, Micig had the following production data for its first department Units Units in process as of July 1, 70% complete 24.000 quarts Units completed and transtored out 193 000 quarts Units in process as of July 31, 80% complete 41,800 quarts Costs Work-In-Process Inventory as of July 1 $167,000 Direct material purchased in July $110,000 Direct materialised in July $194 300 Direct labor added in July $ 51.200 Applicd averhead $203,700 Actual overhoad $210,900 Required: a. Using the weghted average method, calculate the equivalent units of production for July 4. (25 pts) Standard Costing: Materials Variances Heyer, Inc. manufactures a product with the following unit standard costs for material and labor. Direct materials 7.0 lbs. $8.50) 559.50 Direct labor(1 8 hrs $1600) 27.00 Actual information for the month of October Production 72,000 units Direct materials purchased 460 000 bs SS.DVD Direct materials used 520.000 6 Direct labor 82,000 hrs. $14.00hr. Recuit a Compute the matcrials price variance and materials usage variance and be sure to indicate whether cach is tavorablc (F) or unfavorablc (U) b Indicate who in the company is responsible for each variance c. Provide an explanation for each variance, explaining what could cause it to be favorable or unfavorable based on whether the vanance you computed is tavorable or untavorable) b. Calculate the unit cost for July (Round your answer to 2 decimal places) d Prepare the journal entry to record the purchase of materials C Calculate the cost of units completed and transferred out e. Prepare the journal entry to record the issuance of the materials used in production d Calculate the cost of ending Work-In Process Inventory as of July 31 (Round your answers to the ncarest wholc dollar) f Prepare the journal entry to close the variance accounts