MANAGERIAL ACCOUNTING - (FALL SEMESTER 2017)

ASSESSMENT NUMBER 1

JOB-ORDER COSTING

Osbourne Company utilizes a Job-Order Costing Systems. Data for the three (3) jobs that were in process during the month of August of the current year are as follows:

_____________________ Job 220_____Job 221____Job 222

Balance August 1 $12,640 $16,920 $ 0

Direct Materials $ 8,000 $10,500 $24,320

Direct Labor $16,250 $18,600 $28,890

Direct Labor Hours 800 600 1,000

Manufacturing Overhead is applied to jobs in production at the rate of $12 per Direct Labor Hour. At the end of the month of August of the current year, Job 220 and Job 221 were completed and transferred out to Finished Goods Inventory. Job 218 (completed in the month of July of the current year) and Job 220 were sold during the month of August of the current year. Job 222 remained in process at the end of the month of August of the current year. On August 1 of the current year, the balance in Finished Goods Inventory was $56,570 (consisting of Job 218 for $31,760 and Job 219 for $24,810).

Osbourne Company prices its jobs at the job's cost plus forty percent (40%) markup. During the month of August of the current year, Variable Marketing (Selling) Expenses were six percent (6%) of Sales and Fixed Marketing (Selling) Expenses were $6,000 and Administrative Expenses were $8,200.

Required

1. Prepare Job-Order Cost Sheets for all jobs in process during the month of August of the current year.

2. Compute the balance in Work-In-Process Inventory at the end of the month of August of the current year.

3. Compute the balance in Finished Goods Inventory at the end of the month of August of the current year.

4. Compute Cost of Goods Sold for the month of August of the current year.

5. Compute Net Income (Operating Income) for Osbourne Company for the month of August of the current year.

INSERT THE REQUIRED ABOVE INFORMATION IN THE TEMPLATE PRESENTED BELOW.

1.			Job 220		Job 221		Job 222
	Balance, August 1		$		$		$
	Direct Materials
	Direct Labor
	Applied Manufacturing Overhead
	Total		$		$		$
2.	Work-In-Process Inventory - August 31		$
3.	Finished Goods Inventory:
	Beginning Balance		$
	Completed Goods (Transferred In)
	Sold (Transferred Out)
	Ending Balance - August 31		$
4.	Cost Of Goods Sold:
	Job 218		$
	Job 220
	Ending Balance - August 31		$
5.
Sales					$
Cost Of Goods Sold
Gross Margin (Gross Profit)
Less:
	Variable Marketing (Selling) Expenses
	Fixed Marketing (Selling) Expenses
	Administrative Expenses
Net Income (Operating Income)					$

PROCESS COSTING

Annette Company manufactures a pineapple soda in three (3) departments: Baking, Blending and Packaging. Annette Company uses the Weighted-Average Method for computing Equivalent Units Of Production (EUP). The following are cost and production (in gallons) data for the Baking Department for the month of August of the current year:

Production

Units In Work-In-Process Inventory August 1 30,000

Units Completed And Transferred Out 60,000

Units In Work-In-Process Inventory August 31 20,000

(Twenty Percent (20%) Complete)

Costs

Work-In-Process Inventory August 1 $ 92,800

Costs Added During The Month Of August $377,600

Required

Prepare a Production Report for the Baking Department.

INSERT THE REQUIRED ABOVE INFORMATION IN THE TEMPLATE PRESENTED BELOW.

Baking Department
Production Report
For the Month of August
(Weighted Average Method)
UNIT INFORMATION
	Physical Flow:
	Units To Account For:						Units Accounted For:
		Units In Beginning WIP						Units Completed
		Units Started						Units In Ending WIP
		Total Units To Account For						Total Units Accounted For
	Equivalent Units:
		Units Completed
		Units In Ending WIP
		Total Equivalent Units
COST INFORMATION
	Costs To Account For:
		Costs In Beginning WIP						$
		Costs Added By Department
		Total Costs To Account For						$
	Cost Per Equivalent Unit							$
					Transferred			Ending
					Out			WIP		Total
		Costs Transferred Out			$			-		$
		Cost In Ending WIP			-			$
		Total Costs Accounted For			$			$		$