Hi Again,

Please assist with the following homework. It is due tomorrow night before 10am. Thanks again!

B-17.06 Ashley Corporation provided the following list of cost data related to its manufacturing operations for the month of September 20X4. Beginning raw materials inventory Raw materials purchased (net) $ 966,400 2,345,500 Ending raw materials inventory 818,200 Direct labor costs 322,300 Indirect materials 125,500 Indirect labor Factory utilities and maintenance 88,900 456,000 Factory depreciation 56,600 Other factory related overhead 24,400 Beginning work in process 777,000 Ending work in process 717,000 (a) Arrange the cost data into a statement of cost of goods manufactured. (b) If Ashley's cost of goods sold for the month was $4,000,000, how much was the increase or decrease in finished goods inventory for the month of September? Name: Date: B-17.06 Section: (a) ASHLEY CORPORATION SCHEDULE OF COST OF GOODS MANUFACTURED FOR THE MONTH ENDING SEPTEMBER 30, 20X4 Direct materials: $ - $ - Raw materials transferred to production $ Direct labor - Factory overhead $ - Total manufacturing costs $ - $ - Cost of goods manufactured (b) $ - B-20.03 Zeus Corporation produces cultured diamonds via a secretive process that grows the diamonds in a vacuum chamber filled with a carbon gas cloud. The diamonds are produced in a single continuous process, and Zeus uses the weighted-average process costing method of accounting for production. The production process requires constant utilization of facilities and equipment, as well as direct labor by skilled technicians. As a result, direct labor and factory overhead are both deemed to be introduced uniformly throughout production. Zeus Corporation prepared the following "unit reconciliation" for the month of July: Unit Reconciliation: Beginning Work in Process Started into Production Total Units into Production Quantity Schedule 5,000 6,000 11,000 Equivalent Units Calculations: Conversion Direct Materials Direct Labor Factory Overhead To Finished Goods 8,000 8,000 8,000 8,000 Ending Work in Process 3,000 1,800 1,500 1,500 9,500 9,500 Total Units Reconciled 11,000 9,800 Ending WIP Completion Status: Materials = 60% and Conversion = 50% The above beginning work in process inventory had an assigned cost of $3,000,000, divided between direct materials (30%), direct labor (20%), and factory overhead (50%). Additional costs incurred during July were $9,500,000, divided between direct materials (15%), direct labor (25%), and factory overhead (60%). Prepare a schedule showing the calculation of cost per equivalent unit. Name: Date: B-20.03 Section: Cost Per Equivalent Unit: Conversion Total Cost Beginning Work in Process Cost incurred during period Total cost Equivalent units Costs per equivalent unit Direct Materials Direct Labor Factory Overhead B-20.04 Zeus Corporation produces cultured diamonds via a secretive process that grows the diamonds in a vacuum chamber filled with a carbon gas cloud. The diamonds are produced in a single continuous process, and Zeus uses the weighted-average process costing method of accounting for production. Below is the company's calculation of cost per equivalent unit for October. During October, the company completed and transferred 8,000 diamonds to finished goods. An additional 4,000 units were still in process at the end of the month. The ending work in process was 60% complete with respect to direct materials and 40% complete with respect to both elements of conversion cost. Prepare a schedule showing the allocation of total cost between finished goods and ending work in process. Cost Per Equivalent Unit: Conversion Beginning Work in Process Cost incurred during period Total cost Total Cost Direct Materials $ 3,900,000 $ 1,170,000 9,300,000 $ 13,200,000 Direct Labor $ Factory Overhead 780,000 $ 1,950,000 1,860,000 2,325,000 5,115,000 $ 3,030,000 $ 3,105,000 $ 7,065,000 Equivalent units 10,400 9,600 9,600 Costs per equivalent unit $ 291.35 $ 323.44 $ 735.94 $1,059.38 $1,350.72 Name: Date: B-20.04 Section: Cost Allocation: Equivalent Units: Conversion Total Cost Transferred to Finished Goods Ending Work in Process Total Ending Work in Process Total Cost Allocation Direct Materials Direct Labor Factory Overhead I-19.02 Hawthorn Corporation manufactures custom all-terrain vehicles (ATVs) and uses a job costing system to assign and track costs. March's beginning inventory consisted of the following components: Raw materials $ 65,000 Work in process 27,000 Finished goods 80,000 The above beginning work in process consisted only of Job #02.778. The finished goods inventory consisted of Job #01.987 ($42,500) and Job #02.665 ($37,500). The following descriptions summarize the various transactions that occurred during March: Purchased $112,000 of raw materials. Used $117,000 of raw materials in the production process. Of this amount, $95,000 consisted of parts and other materials "directly" incorporated into ATVs. The remainder was "indirect" material for shop supplies and small dollar items that are not otherwise traceable to specific ATVs. Total wages and salaries were $225,000. This total was 60% attributable to direct labor, 10% to indirect labor, 5% to sales commissions, and 25% to general and administrative activities. Depreciation for the period totaled $28,000. Of this amount, 75% related to factory and factory related equipment, and is contemplated in the factory overhead rates. The other 25% is related to general and administrative activities. Other general and administrative costs, excluding wages and depreciation, totaled $15,000. Other factory overhead costs, excluding indirect materials, wages, and depreciation, totaled $35,500. Hawthorn applies factory overhead at 75% of direct labor costs. The ending work in process consisted of two jobs: Job #03.004 ($25,500) and Job #03.772 ($21,500). All completed units had been delivered to customers, and there was no ending finished goods inventory. Sales for the month amounted to $625,000. All sales are for cash at time of shipment. I-19.02 (a) Prepare T-accounts showing how the above costs flow through the accounting system. For simplicity, you may assume that all expenditures and receipts settle in cash, and you will only need the following T-accounts: Raw Materials Work in Process Finished Goods Cost of Goods Sold Factory Overhead Selling Expenses General & Administrative Expenses Sales Cash Accumulated Depreciation (b) Was overhead underapplied or overapplied? What is the disposition of the difference between actual and applied factory overhead? (c) Prepare an income statement for March. incurred during March. (d) Prepare summary journal entries to record March's transactions. Income taxes of $50,000 were Name: Date: (a) I-19.02(a,b) Section: Raw Materials Beg. Purch. 65,000 0 RM out 0 0 End Factory Overhead 0 0 In. Mat. 0 In. Lab. 0 Depr. 0 Other 0 To Cogs 0 0 Work in Process Beg. 27,000 Dir. Mat. 0 Dir. Lab. 0 App. OH 0 0 End End 0 In (WIP) Comm. 0 0 0 0 General & Admin. 0 COGS 0 Salary 0 Depr. 0 Other 0 0 End 0 0 0 0 0 Selling Expenses 0 80,000 App. OH To FG Finished Goods Beg. 0 0 0 0 Cost of Goods Sold From FG 0 0Over OH 0 0 Sales 0 0 0 0 0 Sales Name: Date: Section: Cash Sales 0 Pur. RM 0 Payroll 0 G&A 0 H/other 0 End 0 0 Accumulated Depr. 0 0 0 0 Depr. I-19.02(a,b) Name: Date: (b) Section: I-19.02(a,b) Name: Date: I-19.02(c) Section: (c) HAWTHORN CORPORATION Income Statement For the Month Ending March 31, 20XX $ Sales ### - ### Cost of goods sold $ Gross profit ### Operating expenses Selling General & administrative Income before income taxes $ - $ Income taxes Net income - $ - Name: Date: I-19.02(d) Section: GENERAL JOURNAL Date Page 1 Accounts Debit Credit Name: Date: I-19.02(d) Section: GENERAL JOURNAL Date Page 2 Accounts Debit Credit