Q1:

Garcin Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost category (manufacturing overhead). The following information is obtained for 2020 o (Click the icon to view the data.) Requirements 1. Use information in the first two bullet points to calculate (a) direct manufacturing laber costs in 2020 and (b) cost of direct materials used in 2020 2. Calculate the ending work-in-process inventery on December 31, 2020 Requirement 1. Use information in the first two bullet points to calculate (a) direct manufacturing labor costs in 2020 and (b} cost of direct materials used in 2020. (Abbreviation used: Manuf. = Manufacturing.) (a) First identify the formula to calculate the direct manufacturing labor costs o = Direct manufacturing laber costs More info The direct manufacturing labor costs in 2020 is + Total manufacturing costs, $8,100,000 + Manufacturing overhead allocated, $4,050,000 {allocated at a rate of 200% of direct manufacturing labor costs) + Work-in-process inventory on January 1. 2020, 5420000 (b) First identify the formula to calculate the cost of direct materials used in 2020. (Abbreviation used: Manuf. = Manufacturing ) Direct B + )= materials used + Cost of finished goods manufaciured, 8,040,000 The cost of direct materials used in 2020 is Requirement 2. Calculate the ending work-in-process inventory on December 31, 2020. Begin by identifying the correct formula to calculate the ending work-in-process inventory on December 31, 2020. (Abbreviation used: Manuf. = Manufacturing ) Work-in-process, + - = 12/31/2020 The ending work-in-process inventory on December 31, 2020 is Cramer Solutions designs Web pages for clients in the education sector. The company's job-costing system has a single direct cost category (Web-designing labor) and a single indirect cost pool composed of all overhead costs. Overhead costs are allocated to individual jobs based on direct labor-hours. The company employs six Web designers. Budgeted and actual information regarding Cramer Solutions follows: :(Click the icon to view the data.) Read the requirements. Compute the direct-cost rate and the indirect-cost rate per labor hour under: (a) (b) (c) Actual Normal Variation of costing costing normal costing Direct-cost rate Indirect-cost rate Requirement 2. Which method would you suggest Cramer Solutions use? Explain. Cramer Solutions should choose a job-costing system based on the information available to them. If Cramer Solutions knows as the jobs are being done, I would recommend Cramer Solutions use by calculating a to cost jobs. enables Cramer Solutions to use the to estimate the cost of a job as soon as the job is completed. If Cramer Solutions does not know as the jobs are being completed, I would recommend that Cramer Solutions use the This would allow Cramer Solutions to estimate costs on a more-timely basis. Requirement 3. Cramer Solutions' Web design for Greenville Day School was budgeted to take 105 direct labor-hours. The actual time spent on the project was 90 hours. Compute the cost of the Greenville Day School job using (a) actual costing, (b) normal costing. and (c) the variation from normal costing that uses budgeted rates for direct costs. Begin by identifying the formulas to calculate the direct and indirect-costs under actual costing. (a) Actual costing: Direct-costs X Indirect-costs Data table Identify the formulas to calculate the direct and indirect-costs under normal costing. (b) Normal costing: Budget for 2020: Direct-costs Direct labor costs 5 200,000 Indirect-costs Direct labor- hours 10,000 Identify the formulas to calculate the direct and indirect-costs under the variation of normal costing. Overhead costs 200,000 (c) Variation of normal costing: Actual results for 2020: 280,000 Direct-costs Direct labor costs Indirect-costs Direct labor-hours 10,000 Overhead costs S 140,000 What would the cost of this job be under each of the costing methods in requirement 1? (a) (b) (c) Actual Normal Variation of Print Done Cost of Cramer Solutions costing costing normal costing Direct-costs Indirect-costs Total job costs