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Requirements: how to solve it? whats the answer ? Managerial Project (Job Costing) Western Slope Beach Manufacturing Company (Part 2) The Western Slope Beach Manufacturing

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Managerial Project (Job Costing) Western Slope Beach Manufacturing Company (Part 2) The Western Slope Beach Manufacturing Company in part I used a traditional costing! system with a single overhead pool applied using direct labor hours. Management is questioning the results and has asked the Cost Accounting Department to provide more accurate cost data. The first change was to pull robotic cost out of overhead and make it a direct cost as shown in the tables below. This change was justified because new technology would allow the tracking of this cost. The second change was to install an extensive Activity Based Costing System for manufacturing overhead with ten cost pools as shown below. The activity rates are predetermined (Normal Costing) at the beginning of the year. The following manufacturing data was used to determine the activity rates for the current year: Cost Total Cost Estimated Activity Hierarchy Costs Driver Use of Driver Design Product $370,000 Parts 74,000 parts Engineering Product 212,000 Engineering Hrs. 4,240 hours Purchasing Batch 24,000 Purchase Orders 1200 orders Material Handling Batch 76,000 Batches Moved 152 batches Machine Set-up Batch 102,000 Set-ups 680 set-ups Machining Activities Unit 980,000 Turns 1,960,000 turns. Assembly Unit 125,000 Direct Labor Hrs. 125,000 hrs. Inspection Batch 340,000 Tests 170,000 tests Power Usage(Machines) Unit 300,000 Machine Hours 100,000 hours Facilities & Management Facility 1,500,000 Units Produced 50,000 units Total Est. Overhead $4,029,000 0 The following data is available for the third quarter of the current year: Job 12 Job 13 Job 14 Job 15 Job 16 Beg. Work in Prog. $169,000 0 0 0 Direct Material Cost $312.000 $1,000,000 $890,000 $484,000 $458,000 Direct Labor Cost $165,000 $298,000 $190,000 $144,000 $165,000 Direct Robotics Cost $274,000 $261,000 $287,000 $100,000 $78,000 # Parts in Design 0 4 ,000 5,000 6,000 1,000 Engineering Hours 20 500 600 400 300 Purchase Orders 100 100 200 300 400 Batches Handled 20 100120 18 16 Set-ups | 20 40 60 100 Machining Turns 90.000 100.000 120,000 110,000 Direct Labor Hours 2,000 11,000 10,000 3000 5,000 6.000 Inspection Tests 6.000 10.000 12.000 11.000 4,000 Machine Hours 9,000 14,000 18,000 15,000 7,000 Units Produced 3,000 2,000 4,000 1,000 5,000 20 All design cost and most engineering cost comes at the very beginning of the process. Job 12 was in process at the beginning of the quarter. Additional Information: 1. Jobs 12 - 15 were completed this quarter. Job 16 was started but not completed this quarter. Jobs 12 - 14 have been delivered to the customers. Job 12 was in process at the beginning of the quarter and was included in last year's inventory at a cost of $169,000 as shown above. 2. Round to the nearest dollar on Financial Statements and to the nearest cent on per unit calculations. Requirements: 1. Complete a Job Costing Sheet for each job showing the detailed amount of direct and indirect costs in each job. Show the cost per unit within each job. 2. Complete a Cost of Goods Manufactured Statement for the period

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