OTHER SETS BY THIS CREATOR. 28 terms. Problem ... We offer sample solutions for Managerial Accounting homework problems. Name two principal types of cost accounting systems. manufacturing overhead is as follows: The estimated total amount of the Personal computers go through several departments where sub assemblies are unpacked and checked, the circuit board is attached, the product is tested and repaired if defective, and the computers are packed carefully for shipping. The month’s costs were allocated on the number of units processed during the month as follows: The $12 per unit cost was assigned in a way that resulted in the following costs: Ring realized that this per unit cost is incorrect and asks you to develop a better method of computing these costs for the month ended July 31. Change the estimated total amount of the allocation base back to 50,000 machine-hours so that the data look exactly like they did in part (2). charged to the departments and not per each job done. Work in process, August 1 (30,000 pints): Units started in production during the month, 72,000; units completed and transferred, 52,800; and units in process at the end of the month (100% complete as to materials; 60% complete as to conversion), 19,200. At the end of the month, the department’s work in process included 3,600 units that were 100% complete as to materials and 30% complete as to conversion. The department handled 30,000 units during the month, including the 6,000 units in beginning inventory on July 1. and determining the costs of finished and partially finished Information contained in the memo should include: Using the Internet—A view of the real world. The beginning and ending Finished Goods Inventory amounts are correct. Managerial accounting chapter 2. See examples below: Show more sample solutions. The other 600 pairs are complete now, and have been transferred out. (There was no beginning inventory.). Karol Ring, the production manager, has been concerned with cost overruns during July in the frames department, which produces the bicycle frames. How would you recommend that July’s costs be assigned to the units produced?How would this differ from the present method? of overhead is as follows: Hence, manufacturing overhead is under applied by. “We set those aside, and we will fix them when we have some free time. 101 was exactly one-half finished in direct labor-hours and machine-hours at the beginning of April, and Job No. Bobkim's overhead variance would be? Would a lumber mill use process or job costing? Assume that Mahoney uses separate departmental overhead rates based upon direct labor hours for assembly and machine hours for finishing. Get step-by-step explanations, verified by experts. complete. Managerial Accounting. Show the transactions in journal entry form. base. from under applied $10,000 (in step 2) because of the increase of “Company policy is to send all defective products to the Rework Department. Exercise C In Department D, materials are added uniformly throughout processing. The estimated total amount of the Direct labor costs charged to jobs in April were $32,000. Our solutions are written by Chegg experts so you can be assured of the highest quality! Exercise A Using the average cost method, compute the equivalent units of production in each of the following cases: Exercise B In Department C, materials are added at the beginning of the process. Chapter 3: Process Cost System. The heading of the memorandum should contain the date, to whom it is written, from whom, and the subject matter. 10,000 machine hours in estimated total amount of the allocation JavaScript is required to view textbook solutions. Assume the beginning inventory on June 1 was 100% complete as to materials and 25% complete as to conversion. Your description should include examples of raw materials used as inputs, production activities required to convert inputs into products, and resulting outputs (finished goods).