here is two management accounting problems
Problem 2.28 Cost Assignment Methods Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10gallon drums. Brody provided the following information for last year: Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales. Required: Problem 2.33 Cost of Goods Manufactured, Cost Identification, Solving for Unknowns Allright Test Design Company creates, produces, and sells Internetbased CPA and CMA review courses for individual use. Davis Webber, head of human resources, is convinced that question development employees must have strong analytical and problemsolving skills. He asked Andrea Benson, controller for Allright Test Design, to help develop problems for use in screening applicants before they are interviewed. One of the problems Andrea developed is based on the following data for a mythical company (Mythic, Inc.) for the previous year: a. b. c. d. e. f. g. Conversion cost was $140,000 and was four times the prime cost. Direct materials used in production equaled $5,000. Cost of goods manufactured was $154,000. Ending work in process is 40 percent of the cost of beginning work in process. There are no beginning or ending inventories for direct materials. Cost of goods sold was 110 percent of cost of goods manufactured. Beginning finished goods inventory was $22,400. Required: Problem 2.28 Cost Assignment Methods Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10gallon drums. Brody provided the following information for last year: Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales. Required: Problem 2.33 Cost of Goods Manufactured, Cost Identification, Solving for Unknowns Allright Test Design Company creates, produces, and sells Internetbased CPA and CMA review courses for individual use. Davis Webber, head of human resources, is convinced that question development employees must have strong analytical and problemsolving skills. He asked Andrea Benson, controller for Allright Test Design, to help develop problems for use in screening applicants before they are interviewed. One of the problems Andrea developed is based on the following data for a mythical company (Mythic, Inc.) for the previous year: a. b. c. d. e. f. g. Conversion cost was $140,000 and was four times the prime cost. Direct materials used in production equaled $5,000. Cost of goods manufactured was $154,000. Ending work in process is 40 percent of the cost of beginning work in process. There are no beginning or ending inventories for direct materials. Cost of goods sold was 110 percent of cost of goods manufactured. Beginning finished goods inventory was $22,400. Required
