Question
Part I- Exercise cost for orders The accounting records indicate certain balances in the inventory accounts for 20xx: 1/1/xx 31/12/xx Materials inventory $ 22,000 $
Part I- Exercise cost for orders
The accounting records indicate certain balances in the inventory accounts for 20xx:
1/1/xx | 31/12/xx | |
Materials inventory | $ 22,000 | $ 18,000 |
work-in-process inventory(Work in Process) | -0- | $25,000 |
Finished Goods Inventory | $14,000 | $27,000 |
Other data (applies to the period from 1/1/xx to 12/31/xx) Prime costs were $364,000. Materials were purchased 10 times the amount of materials in inventory at the beginning of the year. Direct labor costs (Direct Labor) represent 40% of conversion costs which were $350,000. The company generates, on average, 40% gross profit (Gross Margin).
1. Calculate the following games for 20xx:
a. Cost of materials used (Direct Materials Used) b. Direct labor cost (Direct Labor)
c. Indirect factory costs incurred (Manufacturing Overhead)
d. Cost of manufactured goods (Cost of Goods Manufactured)
e. Unit cost (5,000 units are produced)
F. period sales g. cost of goods sold
Part II- Procedural cost
The Alcanza Corp. adds the materials at the beginning of its production process and the conversion costs add them evenly. At the beginning of June 20xx, the inventory in process had 25% completion; at the end of the month it had 65% completion. Other important information is disclosed below:
Beginning inventory of goods in process | 1,700 unidades |
Units started during the period | 3,900 unidades |
Units completed during the period | 3,700 unidades |
conversion costs | $530,000 |
direct materials used | $295,000 |
Beginning inventory costs | |
Materials | $125,000 |
Conversin | $ 190,000 |
1. Prepare the cost report for the month of June 20xx.
Part III- Question
1. Compare and contrast accounting according to both methods (establish two similarities and two differences).
2. Establish which of the cost systems is more practical to do a cost-benefit analysis and which applies a cost-by-volume analysis (use the textbook and the Module 2 presentation as a basis for answering).
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