Account answer

Hl5017 Managerial Accounting Week 3 Tutorial Questions Question 1 For each of the following companies, indicate whether job or process costing is more appropriate and explain your answer. a) Engineering consulting firm b) Manufacturer of ceramic tiles c) Architecturalfirm cl) Manufacturer of party balloons. Question 2 Toys World started and finished job number A26, a batch of 1000 cuddly koalas, during March 2020. The job required $4850 of direct material and 32 hours of direct labour at $20 per hour. The predetermined overhead rate is $10.50 per direct labour hour. On 31St March, 900 of the cuddly koalas were shipped to a local toy shop. Required: a) Preparejournal entries to record the incurrence of production costs, completion of job number A26 and the shipment of 900 cuddly koalas to local toy shop. b) Calculate the cost per cuddly koala forjob number A26. c) How might the managers at Toys World use this information? Question 3 Outdoor Goods Pty Ltd allocates manufacturing overhead to work in process based on machine hours. On 1 January of the current year, there were no balances in work in process or nished goods inventories. The following estimates were included in the budget for the current year: Total estimated manufacturing overhead $300 000 Total estimated machine hours 40 000 During January, the rm worked on the following production jobs: 381 1600 machine hours J76 2400 machine hours M49 1000 machine hours During January, job numbers 381 and J76 were completed, andjob number 381 was sold. The actual manufacturing overhead incurred during January was $30 000. Required: a] Calculate the company's predetermined overhead rate for the year. bl How much manufacturing overhead was applied to production during January? cl Calculate the overapplied or underapplied overhead for January. 11) Prepare a journal entry to close the balance calculated in the previous requirement to cost of goods sold