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Quinnipiac Padfolio Club makes two products (Padfolios and Business Cards) for students to use during interview season. The company uses a normal costing system with

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Quinnipiac Padfolio Club makes two products (Padfolios and Business Cards) for students to use during interview season. The company uses a normal costing system with a single manufacturing overhead cost pool (allocated based on direct labor costs), and operates at capacity (i.e. all overhead is allocated to units produced in the year). Direct Material and Direct Labor is incurred in the factory and is directly traced to the two product lines (Padfolios & Business Cards). Overhead costs (like plant supervision, maintenance and utilities are incurred in the factory but cannot be directly traced to the two product lines. Budgeted information for the year ended December 31, 2017 is as follows: Budgeted Factory Figures Units to be produced Direct Materials Direct Manufacturing Labor Manufacturing Overhead Costs TOTAL MANUFACTURING COSTS $ $ Padfolios Business Cards 5,000 20,000 24,500 $ 25,500 $ 41,200 $ 16,800 $ ? ? $ 65,700$ 42,300 $ Total 25,000 50,000 58,000 23,000 131,000 $ Actual information for the year ended December 31, 2017 is as follows: Actual Factory Figures Padfolios Business Cards Total Units Produced 4,500 23,000 27,500 Direct Materials $ 23,000 $ 26,500 $ 49,500 Direct Manufacturing Labor $ 38,000 $ 17,500 $ 55,500 Manufacturing Overhead Costs ? ? $ 21,500 TOTAL MANUFACTURING COSTS $ 61,000 $ 44,000 $ 126,500 Answer cells must remain in the same location so do not insert/delete columns or rows in the file. Numeric answers must include a formula or reference so 1 Assuming Normal Costing, calculate the budgeted manufacturing overhead rate for 2017 that will be used to allocate overhead into the inventory cost of the products. Budgeted M.OH Rate 2 Using Normal Costing, calculate (1) the total cost of each product line (Padfolios vs. Business Cards) and (2) the cost of a single unit of each product based on the plant-wide overhead rate calculated above. (Actual Direct costs should be traced to the products as identified above. Indirect costs should be allocated to the products based on the Budgeted Overhead Allocation Rate and the Actual Allocation Base.) Padfolios Business Cards Total Direct Material + Direct Labor + Allocated Manufacturing Overhead = Total Manufacturing Costs / Units Produced Cost per Unit 3 3 Assuming Normal Costing, complete these tables describing how the company's inventory accounts changed during the year. For COGM, assume that all Padfolios produced in the month were completed and moved out of WIP but that only half of the Business Cards were completed (all units are reported at the per unit cost calculated in #3). None of the items in Beginning WIP were completed. 65,500 Direct Materials Beginning DM $ +Purchases $ -DM Used =Ending DM Work-in-Process 30,000 Beginning WIP $ 75,000 +Total Mfg Cost -COGM =Ending WIP Finished Goods 32,750 Beginning FG $ +COGM -COGS $ =Ending FG 135,000 4 4 Assuming Normal Costing, calculate the total amount of under-or over-allocated overhead for the year. Over/(Under)-allocated OH 5 Calculate the ending inventory balances and COGS if over/under)-allocated manufacturing overhead is written off to COGS. Total Work-in-Process Unadjusted WIP + Adjust M.OH =Adjusted WIP Finished Goods Unadjusted FG + Adjust M.OH =Adjusted FG Cost of Goods Sold Unadjusted COGS + Adjust M.OH =Adjusted COGS $ $ $ 10 Calculate the ending inventory balances if over/under)-allocated manufacturing overhead is pro-rated based on the accounts' unadjusted balances. Total $ Work-in-Process Unadjusted WIP Unadjusted % + Adjust M.OH =Adjusted WIP Finished Goods Unadjusted FG Unadjusted % + Adjust M.OH =Adjusted FG Cost of Goods Sold Unadjusted COGS Unadjusted % + Adjust M.OH =Adjusted COGS 0% $ $ Quinnipiac Padfolio Club makes two products (Padfolios and Business Cards) for students to use during interview season. The company uses a normal costing system with a single manufacturing overhead cost pool (allocated based on direct labor costs), and operates at capacity (i.e. all overhead is allocated to units produced in the year). Direct Material and Direct Labor is incurred in the factory and is directly traced to the two product lines (Padfolios & Business Cards). Overhead costs (like plant supervision, maintenance and utilities are incurred in the factory but cannot be directly traced to the two product lines. Budgeted information for the year ended December 31, 2017 is as follows: Budgeted Factory Figures Units to be produced Direct Materials Direct Manufacturing Labor Manufacturing Overhead Costs TOTAL MANUFACTURING COSTS $ $ Padfolios Business Cards 5,000 20,000 24,500 $ 25,500 $ 41,200 $ 16,800 $ ? ? $ 65,700$ 42,300 $ Total 25,000 50,000 58,000 23,000 131,000 $ Actual information for the year ended December 31, 2017 is as follows: Actual Factory Figures Padfolios Business Cards Total Units Produced 4,500 23,000 27,500 Direct Materials $ 23,000 $ 26,500 $ 49,500 Direct Manufacturing Labor $ 38,000 $ 17,500 $ 55,500 Manufacturing Overhead Costs ? ? $ 21,500 TOTAL MANUFACTURING COSTS $ 61,000 $ 44,000 $ 126,500 Answer cells must remain in the same location so do not insert/delete columns or rows in the file. Numeric answers must include a formula or reference so 1 Assuming Normal Costing, calculate the budgeted manufacturing overhead rate for 2017 that will be used to allocate overhead into the inventory cost of the products. Budgeted M.OH Rate 2 Using Normal Costing, calculate (1) the total cost of each product line (Padfolios vs. Business Cards) and (2) the cost of a single unit of each product based on the plant-wide overhead rate calculated above. (Actual Direct costs should be traced to the products as identified above. Indirect costs should be allocated to the products based on the Budgeted Overhead Allocation Rate and the Actual Allocation Base.) Padfolios Business Cards Total Direct Material + Direct Labor + Allocated Manufacturing Overhead = Total Manufacturing Costs / Units Produced Cost per Unit 3 3 Assuming Normal Costing, complete these tables describing how the company's inventory accounts changed during the year. For COGM, assume that all Padfolios produced in the month were completed and moved out of WIP but that only half of the Business Cards were completed (all units are reported at the per unit cost calculated in #3). None of the items in Beginning WIP were completed. 65,500 Direct Materials Beginning DM $ +Purchases $ -DM Used =Ending DM Work-in-Process 30,000 Beginning WIP $ 75,000 +Total Mfg Cost -COGM =Ending WIP Finished Goods 32,750 Beginning FG $ +COGM -COGS $ =Ending FG 135,000 4 4 Assuming Normal Costing, calculate the total amount of under-or over-allocated overhead for the year. Over/(Under)-allocated OH 5 Calculate the ending inventory balances and COGS if over/under)-allocated manufacturing overhead is written off to COGS. Total Work-in-Process Unadjusted WIP + Adjust M.OH =Adjusted WIP Finished Goods Unadjusted FG + Adjust M.OH =Adjusted FG Cost of Goods Sold Unadjusted COGS + Adjust M.OH =Adjusted COGS $ $ $ 10 Calculate the ending inventory balances if over/under)-allocated manufacturing overhead is pro-rated based on the accounts' unadjusted balances. Total $ Work-in-Process Unadjusted WIP Unadjusted % + Adjust M.OH =Adjusted WIP Finished Goods Unadjusted FG Unadjusted % + Adjust M.OH =Adjusted FG Cost of Goods Sold Unadjusted COGS Unadjusted % + Adjust M.OH =Adjusted COGS 0% $ $

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