See attached file for clarity.
Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.
(a) Indicate the missing amount for each letter.
(b) Prepare a condensed cost of goods manufactured schedule for Case 1.
(c) Prepare an income statement and the current assets section of the balance sheet for Case 1. Assume that in Case 1 the other items in the current assets section are as follows: Cash $3,000, Receivables (net) $10,000, Raw Materials $700, and Prepaid Expenses $200.
Dooley Manufacturing uses a job order cost accounting system. On May 1, the company has a balance in Work in Process Inventory of $3,200 and two jobs in process: Job No. 429 $2,000, and Job No. 430 $1,200. During May, a summary of source documents reveals the following.
Dooley Manufacturing applies manufacturing overhead to jobs at an overhead rate of 90% of direct labor cost. Job No. 429 is completed during the month.
Prepare entries for factory labor.
(a) Prepare summary journal entries to record: (i) the requisition slips, (ii) the time tickets,(iii) the assignment of manufacturing overhead to jobs, and (iv) the completion of Job No. 429.
(b) Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets.
The Sanding Department of Han Furniture Company has the following production and manufacturing cost data for April 2005. Production: 12,000 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 40% complete as to conversion costs. Manufacturing costs: Materials $36,000; labor $30,000; overhead $37,320.
Prepare a production cost report. There is no beginning work in process.
Jacobson Electronics manufactures two large-screen television models: the Royale which sells for $1,600, and a new model, the Majestic, which sells for $1,300. The production cost computed per unit under traditional costing for each model in 2005 was as follows.
In 2005, Jacobson manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $38 per direct labor hour was determined by dividing total expected manufacturing overhead of $7,600,000 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was: Royale $552 or ($1,600 - $1,048), and Majestic $590 or ($1,300 - $710). Because of this difference, management is considering phasing out the Royale model and increasing the production of the Majestic model. Before finalizing its decision, management asks Jacobson's controller to prepare an analysis using activity-based costing (ABC). The controller accumulates the following information about overhead for the year ended December 31, 2005.
The cost drivers used for each product were:
(a) Assign the total 2005 manufacturing overhead costs to the two products using activity based costing (ABC).
(b) What was the cost per unit and gross profit of each model using ABC costing?
(c) Are management's future plans for the two models sound? Explain.
In the month of June, Angela's Beauty Salon gave 3,500 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $16,800 and variable costs were 80% of sales.
(a) Determine the contribution margin in dollars, per unit, and as a ratio.
(b) Using the contribution margin technique, compute the break-even point in dollars and in units.
(c) Compute the margin of safety in dollars and as a ratio.
The expert indicates the missing amounts and prepares a condensed cost of good manufactured.