Problem 2

Radius Home Interiors, Inc., began two jobs during July 2015. The company had no beginning inventory. The following information is available:

Job 11 Job 12

Direct material $11,800 $12,800

Direct labor $ 9,600 $ 7,300

Machine hours 250 180

The company estimates manufacturing overhead for 2015 is $130,000, and the company estimates that 5,200 machine hours will be used during the year. Radius applies overhead to production based on machine hours.

Required:

1. Calculate the cost of Job 11.

2. Calculate the cost of Job 12.

ACT 5140 - Accounting For Decision Makers Week #3 - HW Assignment You MUST show all work in order to receive credit for the problems. Problem 1 Chambers Manufacturing Firm had following information for April 2015: Beginning Raw Materials Inventory Beginning Work-in-process Inventory Beginning Finished Goods Inventory Ending Raw Materials Inventory Ending Work-in-process Inventory Ending Finished Goods Inventory $ 25,000 30,000 32,000 24,000 28,000 34,000 Raw materials purchased Assembly line labor costs Sales Revenue Factory supplies used Depreciation on factory Depreciation on production machinery Depreciation on sales office Depreciation on administrative equipment Sales salaries Factory supervision Factory security guard cost Office security guard cost Required: 1. Prepare a cost of goods manufactured schedule. 2. Prepare a cost of goods sold schedule. 3. Prepare an Income Statement. 250,000 175,000 875,000 4,500 22,000 35,000 13,000 9,000 78,000 65,000 33,000 28,000 Problem 2 Radius Home Interiors, Inc., began two jobs during July 2015. The company had no beginning inventory. The following information is available: Direct material Direct labor Machine hours Job 11 $11,800 $ 9,600 250 Job 12 $12,800 $ 7,300 180 The company estimates manufacturing overhead for 2015 is $130,000, and the company estimates that 5,200 machine hours will be used during the year. Radius applies overhead to production based on machine hours. Required: 1. Calculate the cost of Job 11. 2. Calculate the cost of Job 12. Problem 3 The Merker Manufacturing Company has the following job cost sheets on file. They represent jobs that have been worked on during April of the current year. This table summarizes information provided on each sheet: Number 544 545 546 547 548 549 550 551 552 553 Total Cost Incurred $15,050 $22,400 $ 7,500 $ 4,300 $33,000 $62,000 $14,600 $22,200 $ 3,600 $ 1,000 Status of Job Finished and delivered Finished and delivered Finished and unsold Finished and delivered Unfinished Finished and unsold Unfinished Finished and delivered Finished and unsold Unfinished Required: 1. What is the cost of goods sold for the month of April? 2. What is the cost of the Work in Process inventory on April 30? 3. What is the cost of the finished goods inventory on April 30? Problem 4 Chaplin Corporation produces a product that passes through two departments. For October, the following equivalent unit schedule was prepared for the first department: Units in Beginning Work in Process 15,000 Units Started 284,000 Units in Ending Work in Process 24,000 Materials 100% Conversion 35% 100% 30% Costs assigned to beginning work-in-process: Materials $77,490 Conversion 30,304 Manufacturing costs incurred during the month: Materials $75,000 Conversion 60,000 Required: 1. Compute the number of equivalent units for materials and for conversion. 2. Compute the unit cost for October using the weighted average method. (Round unit costs to 2 decimal places.) 3. Determine the cost of goods transferred out. 4. Determine the cost of ending work-in-process