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The homework is attached and has three separate questions please respond by word and not excel. Thank You Week 3 written assignment pg1 Week3 written
The homework is attached and has three separate questions please respond by word and not excel. Thank You
Week 3 written assignment pg1 Week3 written assignment Andrew Townsend ACC206 Professor Rodisch October 25, 2011 Week 3 written assignment pg2 E16-17 Calculating income and cost per unit for a service company. Fido Grooming provides grooming services in the local community. In April, Kevin Oliver, the owner, incurred the following costs to groom 650 dogs: Wages.....................................$ 3,900 Grooming supplies expense............$1,625 Building rent expense...................$1,300 Utilities................................. $ 325 Depreciation on equipment.............$ 130 Fido Grooming earned $16,300 in revenues from grooming for the month of April. Req. 1 What is Fido's net operating income for April? Fido Grooming Income Statement Month of April Grooming revenue Expenses: Wages Grooming supplies expense Building rent expense Utilities Depreciation on equipment Total expenses Net income Req. 2 What is the Unit cost to groom one dog? = Total operating expenses total number of dogs groomed Second question P16 - 25A Preparing cost of goods manufactured scheduled and income statement for a manufacturing company. Charlie's Pets succeeded so well that Charlie decided to manufacture his own brand of chewing bone - Fido Treats. At the end of December 2012, his accounting records showed the following: Inventories: Materials Work in process Finished goods Beginning $13,400 0 0 Ending $9,500 2,000 5,300 Other information: Direct material purchases Plant janitorial services Sales salaries expense Delivery expense Sales Revenue $33,000 Utilities for plant $1,600 800 Rent of plant 13,000 5,000 Customer service hotline exp. $1,400 1,700 Direct Labor 22,000 $109,000 Question: 1. Prepare a schedule of costs of goods manufactured for Fido Treats for the year ended December 31, 2012. Fido Treats Schedule of Cost of Goods Manufactured Year Ended December 31, 2012 Beginning work in process inventory Direct materials used: Beginning direct materials inventory Purchases of direct materials Available for use Ending direct materials inventory Direct materials used Direct labor Manufacturing overhead: Rent on plant Utilities for plant Plant janitorial services Total manufacturing overhead Total manufacturing costs incurred during the year Total manufacturing costs to account for Ending work in process inventory Cost of goods manufactured 2. Prepare an income statement for Fido Treats for the year ended December 31, 2012. 3. How does the format of the income statement for Fido Treats differ from the income statement of a merchandiser? 4. Fido Treats manufactured 18,075 units of its product of 2012. Compute the company's unit product cost for the year? Question 3 P17 -26 A Lu Technology, Co. , manufactures CDs and DVDs for computer software and entertainment companies. Lu uses job order costing and has a perpetual inventory system. On April 2, Lu began production of 5,900 DVDs, Job 423, for Stick People Pictures for $1.30 sales price per DVD. Lu promised to deliver the DVDs to Stick People by April 5. Lu incurred the following costs: Date Labor Time Record No. 4/2 655 4/3 656 Date 4/2 4/2 4/3 Description 10hrs @ $14 20hrs @ $13 Amount $140 $260 Material Requisition No. Description Amount 63 31lbs polycarbonate @ $11 $341 64 25lbs acrylic plastic @ $27 $675 74 3lbs refined aluminum @$42 $126 Stick People provides the movie file for Lu to burn onto the DVDs at a cost of $0.50 per DVD. Lu Technology allocates manufacturing overhead to jobs based on the relation between estimated overhead of $540,000 and estimated direct labor costs of $432,000. Job 423 was completed and shipped on April 3. Questions 3. Requirements 1. Prepare a job cost record. Calculate the predetermined overhead rate: then allocate manufacturing overhead to the job.Req. 1 Job Cost Record JOB NO. 423 CUSTOMER NAME: Lu Technology, Co. JOB DESCRIPTION: 5,900 DVDs DATE PROMISED 4-5 DATE 42 42 43 DATE STARTED 4-2 DATE COMPLETED 4-3 MANUFACTURING OVERHEAD ALLOCATED DIRECT MATERIALS DIRECT LABOR REQUISITION LABOR TIME NO. AMOUNT RECORD NO. AMOUNT DATE RATE AMOUNT 63 655 4 3 125%* of direct 64 labor cost \\ 74 656 Overall Cost Summary Direct materials Direct labor Totals Manufacturing overhead allocated Total Job Cost Cost per DVD 2. Journalize in summary form the requisition of direct materials (including the movie files) and the assignment of direct labor and manufacturing overhead to job 423. 3. Journalize completion of the job and the sale of the 5,900 DVDsStep by Step Solution
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