Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please see attached problems the questions are highlighted in red their are two question Q1 and Q2 Question 1 Arnold Company is a manufacturing firm
Please see attached problems the questions are highlighted in red their are two question Q1 and Q2
Question 1 Arnold Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Beginning Balance Ending Balance Raw materials $21,000 $24,000 Work-in-process $40,000 $22,000 Finished goods $26,000 $41,000 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 38,000 machine-hours and incur $266,000 in manufacturing overhead cost. The following transactions were recorded for the year: Raw materials were purchased, $300,000. Raw materials were requisitioned for use in production, $297,000 $(281,000 direct and $16,000 indirect). The following employee costs were incurred: direct labor, $389,000; indirect labor, $62,000; and administrative salaries, $176,000. Selling costs, $160,000. Factory utility costs, $19,000. Depreciation for the year was $143,000 of which $137,000 is related to factory operations and $6,000 is related to selling, general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,000 machine-hours. Sales for the year totaled $1,283,000 On the basis of the above data, you are required to do the following: i) Prepare a schedule of cost of goods manufactured in good form. ii) Was the overhead underapplied or overapplied? By how much? iii) Prepare an income statement for the year in good form. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. Q2 Natraj Company uses the weighted-average method in its process costing system. The Curing Department of Harmon Company reported the following information for the month of November. Units Work in process, November 1 10,000 Percentage Complete With Respect to Conversion 80% Units started 28,000 Completed and transferred out 30,000 Work in process, November 30 8,000 30% Materials Conversion $34,500 $48,600 $146,000 $194,400 Cost of November: Work in process, November 1 Added during the month All materials are added at the beginning of the process. Compute the following items using the weighted-average method: The equivalent units of production for materials. The cost per equivalent unit for conversion. The total cost assigned to units transferred out of the curing department during November. The cost assigned to work-in-process inventory as of November 30Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started