Managerial Accounting Problems

Managerial Accounting1. Flow of manufacturing costsThe following data are taken from the accounting records of Gregory Mfg. Co.:Compute the following for the current year:(a) Direct materials purchased: $____________(b) Total manufacturing costs charged to production (the Work in Process Inventory account):$____________(c) The cost of finished goods manufactured: $____________(d) The cost of goods sold: $____________2. Schedule of cost of finished goods manufacturedThe accounting records of Village Cleaning Co. include the following information about thecompany’s manufacturing costs and inventories in 2011:Complete the following Schedule of Cost of Finished Goods Manufactured for the year endedDecember 31, 2009:3. The following information is available for the LBB Company for the year 2011:Required(1) What are total manufacturing costs charged to work in process?(2) What are costs of finished goods manufactured?(3) What is the cost of goods sold?(4) What is gross profit?(5) What is operating income?4. Langdon Company manufactures custom designed toy sailboats. They use a job order costingsystem. Overhead is applied based on direct labor hours. Estimated overhead for 2012 is $11,840and the company estimates it will use 7,400 direct labor hours. The following events occurred inMarch.(a.) The company purchased materials for $800 on account.(b.) The production supervisor requisitioned 15 sheets of fiberglass for constructing the boats.The fiberglass was in stock and originally cost $3 a sheet.(c.) Direct labor on the boats cost $500.(d.) More materials were purchased for $350 on account.(e.) Indirect labor costs were $210.(f.) A utility bill for the boat factory was $230 and was paid in cash.(g.) A repair bill for the salesman’s car was $75 and will be paid next month.(h.) Additional materials were placed into production which cost $215.(i.) Manufacturing overhead was applied (direct labor during March totaled 500 hours).(j.) One sailboat was completed which cost $325.(k.) The completed sailboat was sold for $750. Record the sale and the cost of sale.Required:(1.) Determine the overhead application rate.(2.) Prepare journal entries for the above transactions.(3.) What is the cost of the remaining Work in Process?5. The Abrams Corporation incurred the following quality costs for the year ending December31, 2012:(a.) What are the total prevention costs for the Abrams Corporation?(b.) What are the total appraisal costs for the Abrams Corporation?(c.) What are the total internal failure costs for the Abrams Corporation?(d.) What are the total external failure costs for the Abrams Corporation?6. Just-in-time manufacturingCandycane Co. is trying to determine how long it takes for one of its products to pass through theproduction process. The following information was assembled regarding how many days theproduct spends in various production activities:(a) Which of the above activities are value-added activities?(b) What is Candycane’s total cycle time?(c) Determine Candycane’s manufacturing efficiency ratio.7. Process costing with equivalent units and beginning inventoryThe records of Westminster Manufacturing Company for the month of May show the followingcosts in Department A:The beginning inventory for May consisted of 10,000 units which were 80% complete as todirect materials and 60% complete as to labor and overhead. A total of 100,000 units werecompleted and transferred out during May, and 20,000 units remained in the work in processinventory. The ending inventory was 80% complete as to direct materials and 40% complete asto labor and overhead. Compute the following:(a) Direct materials cost per equivalent unit: $________________(b) Equivalent full units of production for direct labor and overhead: ________________(c) Total cost of 100,000 units completed: $_________________(d) Total cost of 20,000 units in process at the end of the month: $_________________