Youth Athletic Services (YAS)

Income Statement
For the Month Ended July 31

Dispute
Managing Officiating Training Total
resolution
Sales revenue 6,950 7,900 3,000 1,000 18,850
Cost of service
Direct labor 4,800 1,200 1,875 1,350 9,225
Direct overhead traceble to department
Equipment 950 875 700 10 2,535
Supplies 200 300 250 200 950
Transportation 375 1,000 150 50 1,575
Inrect overhead 384 96 150 108 738
Total expenses 6,709 3,471 3,125 1,718 15,023
Profit 241 4,429 (125) (718) 3,827
Less: Salary to employee 2,250
Less: Salary to William 3,000
Less: Unassigned indirect overhead 30
Less: Marketing costs 600
Less: Administrative costs 225
Net profit (2,278)
a.
Lake Lumber Marty's Marina State Prison System Unassigned costs
Revenue 320,000 96,000 160,000
Labor 120,000 36,000 60,000 24,000
Overhead 30,000 9,000 15,000 6,000
Margin 170,000 51,000 85,000

b.
Bay Accountants
Income Statement
For the Month End January 31

Revenue 576,000
Cost of service
Labor 216,000
Overhead 54,000
Gross Margin 306,000
Other cost
Labor (Unassigned) 24,000
Overhead (Unassigned) 6,000
Marketing 40,000
Profit 236,000
Total
576,000
240,000
60,000
276,000
 Materials Inventory WIP Inventory Finished Goods Inventory
11040 192 9510 7270 PP-24 6600
1392 3768 PP-24 4080 19616 PP-30 PP-24 7270
8472 PP-30 13296 PP-30 19616
New job 10890 26886
10890

a. DM + DL + Applied Overhead
= 2038 + 1280 + 768 + 3360 + ((768 + 3360)*50%))
= 9510
b. Job PP-24
= 2720 + (2720*50%)
= 4080
c. Finished goods: Job PP-24
= 3190 + 2720 + 2720*50%
= 7270
d. Job PP-30
= 1296 + 8000 + 4000
= 13296
e. Finished goods: Job PP-30
= (1280 + 3360 +( 3360*50%)) + (1296 + 8000 + (8000*50%))
= 19616
f. New job cost
= 3786 + 16320 + (16320*50%) - 4080 - 13296
= 10890
inished Goods Inventory

6600 Sold
a.
Dr Cr
1 Direct Materials Inventory 53,700
Accout Payable 53,700
2 Manufacruring Overhead Control 1,500
Materials Inventory 1,500
3 Accout Payable 53,700
Cash 53,700
4 WIP Inventory 25,500
Materials Inventory 25,500
5 Payroll 42,000
Payroll taxes 13,500
Cash 28,500
6 Payroll 21,000
Fringe Benefits Payable 21,000
7 WIP Inventory 37,800
Manufacruring Overhead Control 18,900
Administrative and Marketing 6,300
Payroll 63,000
8 Manufacruring Overhead Control 32,400
Cash 32,400
9 WIP Inventory 66,150
Applied Manufacturing Overhead Control 66,150
10 Manufacruring Overhead Control 17,250
Accumlated depreciation 17,250

b. Materials Inventory WIP

55,575 12,375
53,700 1,500 25,500 86,325
25,500 37,800
82,275 66,150
55,500

Account Payable Cash

53,700 53,700 53,700
28,500
32,400

Accumulated
Depreciation
17,250
 Finished goods Cost of good sold Manufacturing Overhead Control
62,250 98,775 1,500
86,325 98,775 18,900
32,400
49,800 17,250

Payroll Payroll Taxes Payable Fringe Benefit Payable

42,000 13,500 21,000
21,000 63,000
Overhead Control Applied Manufacturing Overhead
66,150

nefit Payable Administrative and Marketing Cost

6,300
a. Materials Inventory Wages Payable VMOH
137,200 490,000 62,000
93,000 312,400
94,000 197,600

b.
Total Direct Labor Costs = 4,000,000
Total Direct Labor hours = 200,000
VMOH = 312,000
Variable Overhead rate= 1.56
FMOH = 728,000
Fixed Overhead rate = 3.64

c.
Materials Inventory Wages Payable VMOH
137,200 490,000 62,000
93,000 312,400 16,000
94,000 197,600

Applied Overhead
27,200 16,000

d.
Brighton Services
Income Statement

Actual Nomal
Sales revenue 1,400,000 1,400,000
Less: Cost of good sold (1,282,200) (1,241,224)
Gross margin 117,800 158,776
Less: Cost of good sold
Applied Overhead (11,200)
Marketing and Administrative cost (112,000) (112,000)
Operating profit 5,800 35,576
VMOH FMOH WIP Inventoty FG Inventory
29,900 209,200 104,000 324,200 761,100 761,100
27,500 88,200 1,000,000 521,100 521,100 1,282,200
4,600 17,000 62,000
209,200

VMOH FMOH WIP Inventoty FG Inventory

38,220 209,200 89,180 324,200 754,600 754,600
24,367 56,857 1,000,000 486,624 486,624 1,241,224
15,413 35,963 78,000
27,200 182,000
 COGS
1,282,200

COGS
1,241,224
a. Dr Cr
1 Cash 12,500
Receivable 12,500
2 Materials Inventory 9,400
Payable 9,400
3 Receivable 130,000
Sales revenue 13,000
Cash 75,000
Receivable 7,500
4 Manufacturing overhead 650
Wages payable 650
5 Manufacturing overhead 155
Materials Inventory 155
6 Manufacturing overhead 2,520
Selling cost 600
Cash 2,670
Accumulated Depreciation 450
7 WIP Inventory 39,675
Materials Inventory 15,300
Wages payable 18,750
Applied Overhead 5,625
8 COGS 100,200
Materials 57,300
Direct labor 33,000
Applied Overhead 9,900

b. Overapplied overhead= 2300

c. Materials Inventory WIP Inventory

36,000 15,300 119,550
9,400 155 39,675 100,200
29,945 59,025
 WIP
172,400
140,628 107,000
135,400 408,028
66,600
0

Purchase = 100,200 +75,800 - 43,200

= 132,800

Direct materials = 98,000 + 132,800 - 86,000 - 4,172

= 140,628

Direct labor = 164,800 - 29,400

= 135,400

FG Inventory = 75,000 + (793,200 - 697,200) - 64,000

= 107,000

Applied Overhead = 434,000 - 369,800 + 2,400

= 66,600

Loss = 172,400 + 140,628 + 135,400 + 66,600 - 107,000

= 408,028
a. FG Inventory June 1 = 3,000 + 45,000 - 37,000
= 11,000
b. Manufacturing Overhead = 400/5%
= 8,000
c. Manufacturing Overhead rate = 8,000/10,000
= 0.8
d. Overhead incurred = 8,000 + 400
= 8,400
e. BG. WIP Inventory = (15,000 + 7,000) + 10,000 + 8,000 - 37,000
= 3,000
f. ED. WIP Inventory = 3,000 * 2
= 6,000
a. FG Inventory = 148,000 + 1,520,000 - 1,460,000
= 208,000
b. Applied Overhead = 10,000/2%
= 500,000
c. Manufacturing Overhead rate = 500,000/80,000
= 625%
d. Overhead incurred = 500,000 - 10,000
= 490,000
e. BG. WIP Inventory = (1,057,000 + 25,000 + 80,000 + 500,000 - 1,520,000)/0.25
= 568,000
f. ED. WIP Inventory = 568,000 * 1.25
= 710,000
a. Payable WIP (Job 61) COGS (Job 61)
18,400 8,000 8,000 8,000
38,400 76,800 76,800
19,200 38,400 38,400
6/1 65,600 123,200
38,400
19,200
6/30 0

b. Wages Payable WIP (Job 62) COGS (Job 62)

128,000 12,000 12,000 12,000
48,000 48,000 48,000
24,000 24,000 24,000
6/30 0 84,000

c. Overhead WIP (Job 63) Underapplied Overhead

80,000 64,000 6,400 16,000
41,600
20,800
68,800
a.
Olde Town Newton
Overhead cost 20,000,000 80,000,000
Direct labor-hours 200,000 200,000
Overhead rate 100 400

b.
Beacause the overhead rate at Newton higher than Olde Town.
a.
Chuck should refuse to charge the U.S Department of Defense for work for General Motors

b.
The consulting firm is being reimbursed for the government job and not the General Motors job gives the manger an incentive
b gives the manger an incentive to try.
a.
Because it is between direct labor hours and direct labor cost, the circumstance would cause a difference if different employee

b.
If employees are radomly assigned to jobs, hour is probaly the better choice. If different skill sets are required, allocating based
 difference if different employees were paid different amount.

ets are required, allocating based on direct labor cost is better.

a.
WIP Inventory (Job MC-275) Finished Goods (Job MC-270)
Direct materials 495,000 Direct materials
Direct labor 54,400 Direct labor
Manufacturing overhead 416,000 Manufacturing overhead
Total 965,400 Total

b.
The overhead rate in 3 year = 140
The total cost to job MC-275
BG. Cost 965,400
Add: Direct materials 57,000
Add: Direct labor 5,100
Manufacturing overhead 42,000
Total 1,069,500

c.
Overhead Applied 10,360,000
Overhead incurred 9,120,000
Overapplied overhead 1,240,000

d.
Year 3 in each account
Direct labor hours 74,000 Overhead applied
ED. WIP 7,400 WIP
ED. Finished good 4,440 Finished goods
11,840 Cost of sales
Cost of goods 62,160

e.
Applying the high-low method= 78

Total overhead 9,120,000 Direct materials

Total variable overhead 5,772,000 Direct labor
Total fixed overhead 3,348,000 VMOH
Total
Goods (Job MC-270)
270,000
42,500
325,000
637,500

1,240,000
124,000
74,400
1,041,600

92,500
85,000
390,000
567,500
 El Paso Coporation
Compounding Department
For the Month Ending Steptember 31
Equivalent units
Physical units Materials Conversion
Flow of units
Units to be accounted for:
Beginning WIP Inventory 7,500
Units started this period 17,500
Total units to account for 25,000

Units accounted for

Completed and tranferred out
From beginning WIP inventory 7,500
Prior department 0
Department B 6,000
Started and completed 15,000 15,000 15,000
Units in ending WIP inventory 2,500
Prior department 2,500
Department B 1,250
Total units accounted for 25,000 17,500 22,250

Flow of cost
Cost to be accounted for:
Cost in beginning WIP Inventory 36,675 29,000 7,675
Currenr period cost 219,075 70,000 149,075
Total costs tobe accounted for 255,750 99,000 156,750

Cost per quivalent unit

Prior department 4
Department B 6.7

Cost accounted for

Cost assigned to units tranferred out
Cost from beginning WIP inventory 36,675 29,000 7,675
Current cost to completed beginning
WIP Inventory
Prior department 0
Department B 40,200
Current cost of units started and completed 160,500
Prior department 60,000
Department B 100,500
Total cost transferred out 237,375 89,000 148,375
Cost of ending WIP inventory
Prior department 10,000
Department B 8,375
Total units accounted for 255,750 99,000 156,750
 El Paso Coporation
Compounding Department
For the Month Ending Steptember 31

Equivalent Units
Physical units Materials Conversion
Flow of units
Units to be accounted for:
Beginning WIP Inventory 7,500
Units started this period 17,500
Total units to account for 25,000

Units accounted for

Completed and tranferred out 22,500 22,500 22,500
Units in ending WIP inventory 2,500
Prior department 2,500
Department B 1,250
Total units accounted for 25,000 25,000 23,750
Total Materials Conversion
Flow of cost
Cost to be accounted for:
Cost in beginning WIP Inventory 36,675 29,000 7,675
Current period cost 219,075 70,000 149,075
Total costs tobe accounted for 255,750 99,000 156,750

Cost per quivalent unit

Prior department 4
Department B 6.6

Cost accounted for

Cost assigned to units tranferred out 237,600 89,100 148,500
Cost of ending WIP inventory 18,150 9,900 8,250
Total units accounted for 255,750 99,000 156,750

Under weighted-average, the ending WIP inventory less than FIFO (18,375 - 18,150 = 225)
 Calgary Coporation
Compounding Department
For the Month Ending November 30

Equivalent Units
Physical units Mixing Finishing
Flow of units
Units to be accounted for:
Beginning WIP Inventory 10,000
Units started this period 98,000
Total units to account for 108,000

Units accounted for

Completed and tranferred out 94,000 94,000 94,000
Units in ending WIP inventory 14,000
Prior department 14,000
Department B 8,400
Total units accounted for 108,000 108,000 102,400
Total Materials Conversion
Flow of cost
Cost to be accounted for:
Cost in beginning WIP Inventory 120,606 109,600 11,006
Current period cost 1,260,994 862,400 398,594
Total costs tobe accounted for 1,381,600 972,000 409,600

Cost per quivalent unit

Prior department 9
Department B 4.0

Cost accounted for

Cost assigned to units tranferred out 1,222,000 846,000 376,000
Cost of ending WIP inventory 159,600 126,000 33,600
Total units accounted for 1,381,600 972,000 409,600
 Calgary Corporation
Compounding Department
For the Month Ending November 30
Equivalent units
Physical units Mixing Finishing
Flow of units
Units to be accounted for:
Beginning WIP Inventory 10,000
Units started this period 98,000
Total units to account for 108,000

Units accounted for

Completed and tranferred out
From beginning WIP inventory 10,000
Prior department 0
Department B 7,000
Started and completed 84,000 84,000 84,000
Units in ending WIP inventory 14,000
Prior department 14,000
Department B 8,400
Total units accounted for 108,000 98,000 99,400

Flow of cost
Cost to be accounted for:
Cost in beginning WIP Inventory 120,606 109,600 11,006
Currenr period cost 1,260,994 862,400 398,594
Total costs tobe accounted for 1,381,600 972,000 409,600

Cost per quivalent unit

Prior department 9
Department B 4.0

Cost accounted for

Cost assigned to units tranferred out
Cost from beginning WIP inventory 120,606 109,600 11,006
Current cost to completed beginning
WIP Inventory
Prior department 0
Department B 28,070
Current cost of units started and completed 1,076,040
Prior department 739,200
Department B 336,840
Total cost transferred out 1,224,716 848,800 375,916
Cost of ending WIP inventory
Prior department 123,200 156,884
Department B 33,684
Total units accounted for 1,381,600 972,000 409,600

Under FIFO, the ending WIP inventory less than weighted-average (159,600 - 156,884 = 2,716)
a.
Total Basic Photo Urlife
Materials 2,240,000 480,000 1,200,000 560,000

Conversion cost:
Assembly 2,100,000 1,050,000 787,500 262,500
Special Packaging 600,000 0 0 600,000
Total conversion 2,700,000 1,050,000 787,500 862,500
Total product cost 4,940,000 1,530,000 1,987,500 1,422,500
Number of units 80,000 40,000 30,000 10,000
Cost per unit 38.25 66.25 142.25

b.
Total Basic Photo Urlife
Materials 2,240,000 480,000 1,200,000 560,000

Conversion cost:
Assembly 2,100,000 450,000 1,125,000 525,000
Special Packaging 600,000 0 0 600,000
Total conversion 2,700,000 450,000 1,125,000 1,125,000
Total product cost 4,940,000 930,000 2,325,000 1,685,000
Number of units 40,000 30,000 10,000
Cost per unit 23.25 77.50 168.50
a.
Materials

Gag-Gif

Computer
Polishing
Sport Assembly

Special
Retirement Finishing

Conversion
Cost

b.

Total Gag-Gif Computer Sport Retirement

Materials 321,000 15,000 90,000 156,000 60,000

Conversion cost:
Assembly 120,000 20,000 40,000 52,000 8,000
Polishing 69,000 0 30,000 39,000 0
Special Packaging 20,000 0 0 0 20,000
Packaging 90,000 15,000 30,000 39,000 6,000
Total conversion 299,000 35,000 100,000 130,000 34,000
Total product cost 620,000 50,000 190,000 286,000 94,000
Number of units 30,000 5,000 10,000 13,000 2,000
Cost per unit 10 19 22 47
 Finshied
Packaging Googs
a. The answer is (2)
Materials Conversion cost
Units transferred out 790,000 790,000

Equivalent units ending inventory

Materials 80,000
Conversion costs 24,000
Equivalent units product this period 870,000 814,000

b. The answer is (4)

Prior Conversion
Department Materials Costs
Costs
Units transferred out 330,000 330,000 330,000

Equivalent units ending inventory

Prior department cost 40,000
Materials 0
Conversion costs 26,000
Equivalent units product this period 370,000 330,000 356,000

c. The answer is (1)

EU completed beginning inventory 14,000

Started and completed 300,000
EU in ending inventory 28,000
EU done this period 342,000

d.The answer is (4)

Materials Conversion cost
To complete beginning inventory
Materials 0
Conversion costs 12000
Started and completed during the period 140000 140000
Units still in ending inventory
Materials 32000
Conversion costs 16000
Work done in current period 172000 168000
 Cereal Division of McKenzie Coporation
Compounding Department
For the Month Ending July 31
Equivalent units
Physical units Conversion
Flow of units
Units to be accounted for:
Beginning WIP Inventory 100,000
Units started this period 540,000
Total units to account for 640,000

Units accounted for

Completed and tranferred out
From beginning WIP inventory 100,000
80,000
Started and completed 400,000 400,000
Units in ending WIP inventory 140,000
70,000
Total units accounted for 640,000 550,000

Conversion
Flow of cost
Cost to be accounted for:
Cost in beginning WIP Inventory 387,000
Currenr period cost 2,178,000
Total costs tobe accounted for 2,565,000

Cost per quivalent unit 4

Cost accounted for

Cost assigned to units tranferred out
Cost from beginning WIP inventory 387,000
Current cost to completed beginning 316,800
Current cost of units started and completed 1,584,000
Total cost transferred out 2,287,800
Cost of ending WIP inventory 277,200
Total units accounted for 2,565,000

b.
Cost per EU for last period = 19.4
cost per EU this period = 4
 Douglas Toys
Assembling Department
Production Cost Report - Weighted Average

Equivalent Units
Physical units Prior Department cost Materials
Flow of units
Units to be accounted for:
Beginning WIP Inventory 100,000
Units started this period 500,000
Total units to account for 600,000

Units accounted for

Completed and tranferred out
From BG. Inventory 100,000
Started and completed currently 300,000
Total transferred out 400,000 400,000 400,000
Units in ending WIP inventory 200,000 200,000 180,000
Total units accounted for 600,000 600,000 580,000

Flow of cost
Cost to be accounted for:
Cost from beginning WIP Inventory 255,200 128,000 80,000
Current period cost 1,243,600 640,000 384,000
Total costs tobe accounted for 1,498,800 768,000 464,000

Cost per quivalent unit

Prior department costs 1.28
Materials 0.80
Labor
MOH

Cost accounted for

Cost assigned to units tranferred out
Prior department costs 512,000 512,000
Materials 320,000 320,000
Labor 128,000
MOH 80,000
Total cost of units transferred out 1,040,000

Cost assigned to ending WIP inventory

Prior department costs 256,000 256,000
Materials 144,000 144,000
Labor 44,800
MOH 14,000
Total ending WIPinventory 458,800
Total units accounted for 1,498,800 768,000 464,000
Labor MOH

400,000 400,000
140,000 70,000
540,000 470,000

28,800 18,400
144,000 75,600
172,800 94,000

0.32
0.20

128,000
80,000

44,800
14,000
172,800 94,000
 Douglas Toys
Assembling Department
Production Cost Report - FIFO

Equivalent Units
Physical units Prior Department cost Materials
Flow of units
Units to be accounted for:
Beginning WIP Inventory 100,000
Units started this period 500,000
Total units to account for 600,000

Units accounted for

Completed and tranferred out
From BG. Inventory 100,000
Started and completed currently 300,000 300,000 300,000
Units in ending WIP inventory 200,000 200,000 180,000
Total units accounted for 600,000 500,000 480,000

Flow of cost
Cost to be accounted for:
Cost from beginning WIP Inventory 255,200 128,000 80,000
Current period cost 1,243,600 640,000 384,000
Total costs to be accounted for 1,498,800 768,000 464,000

Cost per quivalent unit

Prior department costs 1.28
Materials 0.80
Labor
MOH

Cost accounted for

Cost assigned to units tranferred out
Cost from beginning WIP Inventory 255,200 128,000 80,000

Current costs added to completed BG. WIP Inventory

Prior department costs
Materials
Labor
MOH
Total cost of units transferred out 21,000

Current cost of units started and completed

Prior department costs 384,000 384,000
Materials 240,000 240,000
Labor 90,000
MOH 54,000
Total cost of units started and completed 768,000

Cost assigned to ending WIP Inventory

Prior department costs 256,000 256,000
Materials 144,000 144,000
Labor 42,000
MOH 12,600
Total ending WIPinventory 454,600
Total units accounted for 1,222,600
Labor MOH

40,000 50,000
300,000 300,000
140,000 70,000
480,000 420,000

28,800 18,400
144,000 75,600
172,800 94,000

0.30
0.18

28,800 18,400

12,000
9,000
90,000
54,000

42,000
12,600
 Elhurst Parts
Production Cost Report - Weighted Average

Equivalent Units
Physical units Materials Labor MOH
Flow of units
Units to be accounted for:
Beginning WIP Inventory 80,000
Units started this period 400,000
Total units to account for 480,000

Units accounted for

Completed and tranferred out
From BG. Inventory 80,000
Started and completed currently 280,000
Total transferred out 360,000 360,000 360,000 360,000
Units in ending WIP inventory 120,000 120,000 48,000 48,000
Total units accounted for 480,000 480,000 408,000 408,000

Flow of cost
Cost to be accounted for:
Cost from beginning WIP Inventory 1,222,800 240,000 546,000 436,800
Current period cost 5,534,400 1,560,000 2,208,000 1,766,400
Total costs tobe accounted for 6,757,200 1,800,000 2,754,000 2,203,200

Cost per quivalent unit

Materials 3.75
Labor 6.75
MOH 5.40

Cost accounted for

Cost assigned to units tranferred out
Materials 1,350,000 1,350,000
Labor 2,430,000 2,430,000
MOH 1,944,000 1,944,000
Total cost of units transferred out 5,724,000

Cost assigned to ending WIP inventory

Materials 450,000 450,000
Labor 324,000 324,000
MOH 259,200 259,200
Total ending WIPinventory 1,033,200
Total units accounted for 6,757,200