Assume the following information related to the Alexis Company for the month of November 2019: Job...
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Assume the following information related to the Alexis Company for the month of November 2019: Job No. 105 Job No. 106 Job No. 107 In process, Nov. 1 Materials P40,000 P20,000 0 Labor P60,000 P40,000 0 Overhead P75,000 P50,000 0 Cost added in November Materials P70,000 P40,000 P60,000 Labor P80,000 P60,000 P100,000 Overhead ? ? 0 Actual overhead incurred in November amounted to P350,000. Job No. 105 and 106 were completed in November. Overhead is applied using a predetermined overhead rate. The overhead variance is allocated to Cost of Goods sold and the appropriate inventories. Given the following information, compute the following: 8. The cost of the Nov. 1 Work in process inventory 9. The amount of overhead applied to production in November assuming no change in the overhead rate used 10. The cost of the goods completed and transferred to finished goods inventory 11. The cost of Goods sold (Job No. 105) 12. The cost of the finished goods inventory 13. The cost of the November 30 work in process inventory Problem 1 (Seatwork) The following are transactions of Robina Corporation for the month of February 2020. Provide the corresponding journal entries for each transaction: 1. Purchase of materials (direct and indirect), on credit, P89,000 2. Usage of direct materials, P81,000, and indirect materials, P4,000 3. Manufacturing payroll for February: Direct labor, P39,000, and indirect labor, P15,000 paid in cash. 4. Other manufacturing overhead costs incurred during February, P75,000, consisting of supervision and engineering salaries, P44,000 paid in cash for plant utilities, repairs, and insurance, P13,000 and plant depreciation, P18,000 5. Allocation of manufacturing overhead to jobs, P80,000 Completion and transfer of individual jobs to finished goods, P188,800 6. 7. Cost of goods sold, P180,000 8. 9. Marketing costs for February, P45,000 and customer service costs for February P15,000, paid in cash Sales, all on credit, P270,000 Problem 2 (Seatwork) The following data is available for Justin Corporation for the year ending December 31, 2020: Inventories Materials Work in process Finished Goods Direct labor cost Materials Purchased Factory Overhead applied at 150% of Direct labor cost 1. Direct materials used 2. Total manufacturing cost 3. Cost of goods manufactured 4. Cost of goods sold January 1 P120,000 P190,000 P102,000 P300,000 P380,000 December 31 P180,000 P158,000 P130,000 Problem 3 (Seatwork) At the end of 2019, Alonzo Company's manufacturing inventory and expense accounts held the following costs. Direct Materials Direct Labor Factory Overhead Work in Process Inventory P120,000 P100,000 Finished Goods Inventory P190,000 P250,000 P300,000 Cost of Goods Sold P350,000 P580,000 P60,000 P480,000 Alonzo's accountant applied overhead during the year using a budgeted rate of P8.40 per hour. At year end, they computed the actual rate of P10.00 per machine hour. The beginning balances of both work in process inventory and finished goods inventory were zero. 5. How many machine hours worked during 2019? 6. Was a factory overhead over or under applied for year? By how much? 7. Prorate the over or under applied overhead to the appropriate accounts. PROBLEM 1 (Seatwork) Sampaguita Company has used a traditional cost accounting system to apply quality control costs uniformly to all products at a rate of P20 per direct labor hour. The average monthly direct labor hours for its main product are 9,600 hours. The Company wants to shift to ABC system in order to allocate quality control costs to its products in a more equitable manner. To start with, process value analysis was conducted. Quality control activities were determined, as well as the appropriate cost drivers and cost driver rates. The analysis yielded the following: Activity Cost Driver Rate Inspection of materials deliveries Classes of materials P500 pre class Quantity product 20 classes for main Inspection of goods in process Number of units P10 per unit 12,000 units Final inspection before Number of orders delivery of finished goods P200 per order 100 orders 1. The quality control cost that would be assigned to the main product using the traditional costing system is 2. The quality control cost that would be assigned to the main product using ABC system is PROBLEM 2 (Seatwork) The cost accountant of Above the Ankle is considering to use the ABC system in determining the cost of its products. At present, the company uses the traditional costing system wherein factory overhead costs are allocated based on direct labor hours. The cost accountant believes that the present system maybe providing misleading cost information, hence, the plan to change to the ABC system. For the coming period, the company is planning to use 5,000 direct labor hours, and its total budgeted factory overhead amounts to P90,000, broken down as follows: Activity Cost Driver Budgeted Activity Setup costs Production monitoring Quality control Number of set ups Number of batches Number of inspections 40 Budgeted Cost P20,000 20 P40,000 1,000 P30,000 Projected data for one of the Company's product, Product B, for the coming period are as follows: Production and sales Direct labor hours Units per batch Number of setups 1. 1,000 units 2,000 hours 500 4 Number of inspections Direct material cost Direct labor rate 200 P10 per unit P20 per hour If the Company will use the traditional full cost system, the cost per unit of product B for the coming period will be 2. If the Company will use the ABC system, the cost per unit of product B for the coming year will be Quiz 3 Provide solution and answer PROBLEM 3 (Quiz 3 Midterm) Quiz 3 Provide solution and answer PROBLEM 3 (Quiz 3 Midterm) Sheldon Cooper operates Daddy's Nursery which provides baby-sitting services for children between 2 to 5 years old. Working mothers leave their children at 8:00 am and pick them up after office hours. Sheldon converted his house into a nursery home where children are provided with sleeping areas, play pen and study areas, as well as meals, milk, and snacks. Nursery fee is computed by adding a mark up to the total cost of service provided to each child. At present, Sheldon uses the traditional costing system in computing the cost of service per child, where the total cost is divided by the number of children served. During the previous month, the nursery served 100 children, for which the company incurred P50,000 total cost of service. Sheldon observed, however, that it is not right to just divide the total cost by the number of children because incurrence of some costs may vary depending on some factors. For example, children between 2 to 3 years old need more attention and are provided more services that those above 3 years old. Considering this, Sheldon, plans to apply ABC system in determining the cost of service per child. He conducted a study of the previous month's operations, and the following results came out: Cost Category Meals, Snacks, Supplies Caregiving hours Cost P20,000 P30,000 Cost Driver Number of children Staff hours Cost Driver Quantity 100 children 1,200 staff Children Category Number of children Babies (2-3 years old) 60 Kiddies (above 3 years old) 40 1. Staff hours 1,000 200 If the traditional costing system were used and nursery fee was computed at 300% of the cost of service per child, Daddy's Nursery could have charged each child a fee of 2. If the ABC system were used, nursery fee per child should have been || Assume the following information related to the Alexis Company for the month of November 2019: Job No. 105 Job No. 106 Job No. 107 In process, Nov. 1 Materials P40,000 P20,000 0 Labor P60,000 P40,000 0 Overhead P75,000 P50,000 0 Cost added in November Materials P70,000 P40,000 P60,000 Labor P80,000 P60,000 P100,000 Overhead ? ? 0 Actual overhead incurred in November amounted to P350,000. Job No. 105 and 106 were completed in November. Overhead is applied using a predetermined overhead rate. The overhead variance is allocated to Cost of Goods sold and the appropriate inventories. Given the following information, compute the following: 8. The cost of the Nov. 1 Work in process inventory 9. The amount of overhead applied to production in November assuming no change in the overhead rate used 10. The cost of the goods completed and transferred to finished goods inventory 11. The cost of Goods sold (Job No. 105) 12. The cost of the finished goods inventory 13. The cost of the November 30 work in process inventory Problem 1 (Seatwork) The following are transactions of Robina Corporation for the month of February 2020. Provide the corresponding journal entries for each transaction: 1. Purchase of materials (direct and indirect), on credit, P89,000 2. Usage of direct materials, P81,000, and indirect materials, P4,000 3. Manufacturing payroll for February: Direct labor, P39,000, and indirect labor, P15,000 paid in cash. 4. Other manufacturing overhead costs incurred during February, P75,000, consisting of supervision and engineering salaries, P44,000 paid in cash for plant utilities, repairs, and insurance, P13,000 and plant depreciation, P18,000 5. Allocation of manufacturing overhead to jobs, P80,000 Completion and transfer of individual jobs to finished goods, P188,800 6. 7. Cost of goods sold, P180,000 8. 9. Marketing costs for February, P45,000 and customer service costs for February P15,000, paid in cash Sales, all on credit, P270,000 Problem 2 (Seatwork) The following data is available for Justin Corporation for the year ending December 31, 2020: Inventories Materials Work in process Finished Goods Direct labor cost Materials Purchased Factory Overhead applied at 150% of Direct labor cost 1. Direct materials used 2. Total manufacturing cost 3. Cost of goods manufactured 4. Cost of goods sold January 1 P120,000 P190,000 P102,000 P300,000 P380,000 December 31 P180,000 P158,000 P130,000 Problem 3 (Seatwork) At the end of 2019, Alonzo Company's manufacturing inventory and expense accounts held the following costs. Direct Materials Direct Labor Factory Overhead Work in Process Inventory P120,000 P100,000 Finished Goods Inventory P190,000 P250,000 P300,000 Cost of Goods Sold P350,000 P580,000 P60,000 P480,000 Alonzo's accountant applied overhead during the year using a budgeted rate of P8.40 per hour. At year end, they computed the actual rate of P10.00 per machine hour. The beginning balances of both work in process inventory and finished goods inventory were zero. 5. How many machine hours worked during 2019? 6. Was a factory overhead over or under applied for year? By how much? 7. Prorate the over or under applied overhead to the appropriate accounts. PROBLEM 1 (Seatwork) Sampaguita Company has used a traditional cost accounting system to apply quality control costs uniformly to all products at a rate of P20 per direct labor hour. The average monthly direct labor hours for its main product are 9,600 hours. The Company wants to shift to ABC system in order to allocate quality control costs to its products in a more equitable manner. To start with, process value analysis was conducted. Quality control activities were determined, as well as the appropriate cost drivers and cost driver rates. The analysis yielded the following: Activity Cost Driver Rate Inspection of materials deliveries Classes of materials P500 pre class Quantity product 20 classes for main Inspection of goods in process Number of units P10 per unit 12,000 units Final inspection before Number of orders delivery of finished goods P200 per order 100 orders 1. The quality control cost that would be assigned to the main product using the traditional costing system is 2. The quality control cost that would be assigned to the main product using ABC system is PROBLEM 2 (Seatwork) The cost accountant of Above the Ankle is considering to use the ABC system in determining the cost of its products. At present, the company uses the traditional costing system wherein factory overhead costs are allocated based on direct labor hours. The cost accountant believes that the present system maybe providing misleading cost information, hence, the plan to change to the ABC system. For the coming period, the company is planning to use 5,000 direct labor hours, and its total budgeted factory overhead amounts to P90,000, broken down as follows: Activity Cost Driver Budgeted Activity Setup costs Production monitoring Quality control Number of set ups Number of batches Number of inspections 40 Budgeted Cost P20,000 20 P40,000 1,000 P30,000 Projected data for one of the Company's product, Product B, for the coming period are as follows: Production and sales Direct labor hours Units per batch Number of setups 1. 1,000 units 2,000 hours 500 4 Number of inspections Direct material cost Direct labor rate 200 P10 per unit P20 per hour If the Company will use the traditional full cost system, the cost per unit of product B for the coming period will be 2. If the Company will use the ABC system, the cost per unit of product B for the coming year will be Quiz 3 Provide solution and answer PROBLEM 3 (Quiz 3 Midterm) Quiz 3 Provide solution and answer PROBLEM 3 (Quiz 3 Midterm) Sheldon Cooper operates Daddy's Nursery which provides baby-sitting services for children between 2 to 5 years old. Working mothers leave their children at 8:00 am and pick them up after office hours. Sheldon converted his house into a nursery home where children are provided with sleeping areas, play pen and study areas, as well as meals, milk, and snacks. Nursery fee is computed by adding a mark up to the total cost of service provided to each child. At present, Sheldon uses the traditional costing system in computing the cost of service per child, where the total cost is divided by the number of children served. During the previous month, the nursery served 100 children, for which the company incurred P50,000 total cost of service. Sheldon observed, however, that it is not right to just divide the total cost by the number of children because incurrence of some costs may vary depending on some factors. For example, children between 2 to 3 years old need more attention and are provided more services that those above 3 years old. Considering this, Sheldon, plans to apply ABC system in determining the cost of service per child. He conducted a study of the previous month's operations, and the following results came out: Cost Category Meals, Snacks, Supplies Caregiving hours Cost P20,000 P30,000 Cost Driver Number of children Staff hours Cost Driver Quantity 100 children 1,200 staff Children Category Number of children Babies (2-3 years old) 60 Kiddies (above 3 years old) 40 1. Staff hours 1,000 200 If the traditional costing system were used and nursery fee was computed at 300% of the cost of service per child, Daddy's Nursery could have charged each child a fee of 2. If the ABC system were used, nursery fee per child should have been ||
Expert Answer:
Answer rating: 100% (QA)
To compute the requested values we need to analyze the given information and perform the necessary calculations Lets calculate each value step by step 8 The cost of the Nov 1 Work in process inventory ... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
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