B/6021 B6021 B 6021 WEEK 1 ASSIGNMENT
- argosy-university / B 6021
- 25 May 2018
- Price: $20
- Other / Other
B 6021 WEEK 1 ASSIGNMENT
Instructions
Assignment 3: Calculating
Inventory
Finlon Upholstery Inc. uses a job-order
costing system to accumulate manufacturing costs. The company's work-in-process
on December 31, 2001, consisted of one job (no. 2077), which was carried on the
year-end balance sheet at $156,800. There was no finished-goods inventory on
this date.
Finlon applies manufacturing overhead to
production on the basis of direct-labor cost. (The budgeted direct-labor cost
is the company's practical capacity, in terms of direct-labor hours multiplied
by the budgeted direct-labor rate.) Budgeted totals for 2002 for direct labor
and manufacturing overhead are $4,200,000 and $5,460,000, respectively. Actual
results for the year are as follows:
|
Actual
Results |
|
|
Direct Materials Used |
$5,600,000.00 |
|
Direct Labor |
$4,350,000.00 |
|
Indirect Material Used |
$65,000.00 |
|
Indirect Labor |
$2,860,000.00 |
|
Factory Depreciation |
$1,740,000.00 |
|
Factory Insurance |
$59,000.00 |
|
Factory Utilities |
$830,000.00 |
|
Selling and Administrative
Expenses |
$2,160,000.00 |
|
Total |
$17,664,000.00 |
Job no. 2077 was completed in January 2002,
and there was no work in process at year-end. All jobs produced during 2002
were sold with the exception of Job no. 2143, which contained direct-material
costs of $156,000 and direct-labor charges of $85,000. The company charges any
under- or over-applied overhead to the cost of goods sold category.
Using the above information, do the
following:
·
Calculate
the company’s predetermined overhead application rate.
·
Calculate
the additions to the work-in-process inventory account for the direct material
used, direct labor, and manufacturing overhead.
·
Calculate
the finished-goods inventory for the 12/31/02 balance sheet.
·
Calculate
the over-applied or under-applied overhead at year-end.
·
Explain
if it is appropriate to include selling and administrative expenses in the cost
of goods sold category.
Perform your calculations in an Excel
spreadsheet and copy the calculations into a Word document.
Write a 1-page paper in Word format. Apply
APA standards to citation of sources. Use the following file naming convention:
LastnameFirstInitial_M1_A3.doc. For example, if your name is John Smith, your
document will be named SmithJ_M1_A3.doc.
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