Act 305 Module 2 Assignment Choice 1: Classification of Costs

In: Film and Music

Submitted By EmmaStone
Words 432
Pages 2
ACT 305 Module 2 Assignment Choice 1: Classification of Costs

http://homeworklance.com/downloads/act-305-module-2-assignment-choice-1-classification-of-costs/

ACT 305 Module 2 Assignment Choice 1: Classification of Costs Critical Thinking Assignment Choice #1: Classification of Costs
Hoover, Inc., uses a job-order coding system. The company’s inventory balances on February 1, the start of its fiscal year, were as follows:
Raw Materials Inventory $69,325
Work in Process Inventory $55,100
Finished Goods Inventory $81,256

During the year, the following transactions were completed:
221. Raw materials were purchased on account, $215,221.
222. Raw materials were issued from the storeroom for use in production, $198,000 (70% direct and
223. indirect).
224. Employee salaries and wages were accrued as follows: direct labor, $243,300; indirect labor,
$98,750; and selling and administrative salaries, $72,340.
233. Utility costs were incurred in the factory, $79,233.
234. Advertising costs were incurred, $110,600.
235. Prepaid insurance expired during the year, $35,000 (80% related to factory operations, and 20% related to selling and administrative activities).
1. Depreciation was recorded, $192,100 (75% related to factory assets, and 25% related to selling and administrative assets).
1. Manufacturing overhead was applied to jobs at the rate of 160% of direct labor cost.
2. Goods that cost $720,200 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.
1. Sales for the year totaled $1,293,300 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $725,825. Instructions:
Submit your assignment as an Excel spreadsheet with each tab labeled by item number. Demonstrate the following:
1. Prepare the journal entries to record the…...

Similar Documents

Module 1: Chapter 2: Cost Flow

...Module 1: Chapter 2: Cost Flow (To be posted as a group assignment in your group discussion area) The following information for Transcontinental Inc. is provided. Use this information to answer the succeeding eight questions: Materials Inventory (Jan. 1) $33,500 Work-in-process Inventory (Jan. 1) $28,100 Finished Goods Inventory (Jan. 1) $36,700 Cost of materials purchased $192,000 Total direct labor costs $168,300 Depreciation – factory machinery $36,200 Small tools expense $8,100 Office supplies $13,400 Machine helpers wages $48,500 Miscellaneous factory expenses $19,600 Presidents salary $125,000 Power - factory $27,100 Factory insurance expense $10,600 Factory supervisors salary $39,500 Sales and advertisement $18,000 Power-office $11,200 Depreciation – office equipment $8,500 Materials inventory (Dec. 31) $28,200 Work-in-process inventory (Dec. 31) $34,700 Finished Goods Inventory (Dec. 31) $13,900 The sales for Transcontinental Inc. during this year were $1,050,000 and a total of 4,800 units were completed during the year. Compute the following for the year: 1. Cost of materials used? _$197,300____ [Cost of Material Purchased + (Difference between Material Inventory Jan 1 - Material Inventory Dec 31)] 2. Factory overhead? ___$189,600____ [Depreciation – factory machinery + Small tools expense + Machine helpers wages + Miscellaneous factory expenses + Power...

Words: 336 - Pages: 2

Act 305 Module 2 Choice 1: Classification of Costs

...ACT 305 Module 2 Choice 1: Classification of Costs http://homeworkfy.com/downloads/act-305-module-2-choice-1-classification-of-costs/ To Get this Tutorial Copy & Paste above URL Into Your Browser Hit Us Email for Any Inquiry at: Homeworkfy@gmail.com Visit our Site for More Tutorials: (http://homeworkfy.com/ ) Hoover, Inc., uses a job-order coding system. The company’s inventory balances on February 1, the start of its fiscal year, were as follows: Raw Materials Inventory $69,325 Work in Process Inventory $55,100 Finished Goods Inventory $81,256 During the year, the following transactions were completed: 221. Raw materials were purchased on account, $215,221. 222. Raw materials were issued from the storeroom for use in production, $198,000 (70% direct and 223. indirect). 224. Employee salaries and wages were accrued as follows: direct labor, $243,300; indirect labor, $98,750; and selling and administrative salaries, $72,340. 233. Utility costs were incurred in the factory, $79,233. 234. Advertising costs were incurred, $110,600. 235. Prepaid insurance expired during the year, $35,000 (80% related to factory operations, and 20% related to selling and administrative activities). 1. Depreciation was recorded, $192,100 (75% related to factory assets, and 25% related to selling and administrative assets). 1. Manufacturing overhead was applied to jobs at the rate of 160% of direct labor cost. 2. Goods that cost $720,200 to manufacture according......

Words: 442 - Pages: 2

Act 305 Module 4 Critical Thinking Assignment Cost of Operation Exercise

...ACT 305 Module 4 Critical Thinking Assignment Cost of Operation Exercise http://homeworkfy.com/downloads/act-305-module-4-critical-thinking-assignment-cost-of-operation-exercise/ To Get this Tutorial Copy & Paste above URL Into Your Browser Hit Us Email for Any Inquiry at: Homeworkfy@gmail.com Visit our Site for More Tutorials: (http://homeworkfy.com/ ) Toy Box, Inc., is contemplating expanding sales of their children’s toys. The have an opportunity to stock and sell the X toy that has been a big hit with children everywhere. They must order the X toys from the manufacturer in a minimum order of 100 at a cost of $12 each. They could resell the X toy in their store for $22 each. Due to anticipated demand, Toy Box, Inc., will need to hire an additional part-time cashier at $600 a month, which will be classified as a fixed-cost attributable to the X toy. In addition, they have offered a $1 sales commission per toy to their floor sales representative. Finally, they will include a package of trading cards with every purchase of an X toy, which will cost them an additional $2 each. Instructions: In a well-written paper, answer the questions and perform the calculations described below: 1. To make the project worthwhile, Toy Box, Inc., would require a $5,000 profit per month. What level of sales, in units and in dollars, would be required to reach this target profit? Show all computations completely, in a table inserted into your document. 2. Assume that the......

Words: 377 - Pages: 2

Act 305 Module 6 Critical Thinking Assignment Cost of Production

...ACT 305 Module 6 Critical Thinking Assignment Cost of Production http://homeworkfy.com/downloads/act-305-module-6-critical-thinking-assignment-cost-of-production/ To Get this Tutorial Copy & Paste above URL Into Your Browser Hit Us Email for Any Inquiry at: Homeworkfy@gmail.com Visit our Site for More Tutorials: (http://homeworkfy.com/ ) Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: As of December 31, (the end of the prior quarter), the company’s general ledger showed the following account balances: Cash $48,000 (debit) Accounts receivable $224,000 (debit) Inventory $60,000 (debit) Buildings and equipment, net $370,000 (debit) Accounts payable $93,000 (credit) Capital stock $500,000 (credit) Retained earnings $109,000 (credit) 1. Actual sales for December and budgeted sales for the next four months are as follows: December $280,000, January $400,000, February $600,000, March $300,000 and April $200,000. 1. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales. 1. The company’s gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.) 2. Monthly expenses are budgeted as follows: salaries and wages, $27,000 per month;......

Words: 579 - Pages: 3

Act 305 Module 2 Assignment Choice 1: Classification of Costs

...ACT 305 Module 2 Assignment Choice 1: Classification of Costs http://homeworklance.com/downloads/act-305-module-2-assignment-choice-1-classification-of-costs/ ACT 305 Module 2 Assignment Choice 1: Classification of Costs Critical Thinking Assignment Choice #1: Classification of Costs Hoover, Inc., uses a job-order coding system. The company’s inventory balances on February 1, the start of its fiscal year, were as follows: Raw Materials Inventory $69,325 Work in Process Inventory $55,100 Finished Goods Inventory $81,256 During the year, the following transactions were completed: 221. Raw materials were purchased on account, $215,221. 222. Raw materials were issued from the storeroom for use in production, $198,000 (70% direct and 223. indirect). 224. Employee salaries and wages were accrued as follows: direct labor, $243,300; indirect labor, $98,750; and selling and administrative salaries, $72,340. 233. Utility costs were incurred in the factory, $79,233. 234. Advertising costs were incurred, $110,600. 235. Prepaid insurance expired during the year, $35,000 (80% related to factory operations, and 20% related to selling and administrative activities). 1. Depreciation was recorded, $192,100 (75% related to factory assets, and 25% related to selling and administrative assets). 1. Manufacturing overhead was applied to jobs at the rate of 160% of direct labor cost. 2. Goods that cost $720,200 to manufacture according to their job cost......

Words: 432 - Pages: 2

Act 305 Module 4 Critical Thinking Assignment Cost of Operation Exercise

...ACT 305 Module 4 Critical Thinking Assignment Cost of Operation Exercise http://homeworklance.com/downloads/act-305-module-4-critical-thinking-assignment-cost-of-operation-exercise/ ACT 305 Module 4 Critical Thinking Assignment Cost of Operation Exercise Critical Thinking Assignment Choice #1: Cost of Operation Exercise Toy Box, Inc., is contemplating expanding sales of their children’s toys. The have an opportunity to stock and sell the X toy that has been a big hit with children everywhere. They must order the X toys from the manufacturer in a minimum order of 100 at a cost of $12 each. They could resell the X toy in their store for $22 each. Due to anticipated demand, Toy Box, Inc., will need to hire an additional part-time cashier at $600 a month, which will be classified as a fixed-cost attributable to the X toy. In addition, they have offered a $1 sales commission per toy to their floor sales representative. Finally, they will include a package of trading cards with every purchase of an X toy, which will cost them an additional $2 each. Instructions: In a well-written paper, answer the questions and perform the calculations described below: 1. To make the project worthwhile, Toy Box, Inc., would require a $5,000 profit per month. What level of sales, in units and in dollars, would be required to reach this target profit? Show all computations completely, in a table inserted into your document. 2. Assume that the venture is undertaken and an......

Words: 367 - Pages: 2

Act 305 Module 8 Portfolio Project Budgeting

...ACT 305 Module 8 Portfolio Project Budgeting http://homeworklance.com/downloads/act-305-module-8-portfolio-project-budgeting/ ACT 305 Module 8 Portfolio Project Budgeting Portfolio Project Option #1: Budgeting Choose an item that you would like to manufacture. You do not actually need to manufacture something, but will proceed through the assignment as if you were planning on manufacturing the item you have selected. The product should require materials and labor and be something that you are familiar with in process from start to finish. The product must be useful and marketable. You can choose something as simple as making chocolate chip cookies, a type of craft, or something more complicated. Consider production as if you were making the product from beginning to end, and not as if using a kit. Perform the following steps: 1. Choose a product to manufacture and describe the manufacturing process. 2. Prepare the following budgets for 1 quarter, broken down monthly, regarding your chosen item: estimated sales budget• estimated direct materials budget• estimated direct labors budget• estimated manufacturing overhead budget• estimated selling and administrative expenses• estimated income statement.• 3. Classify all manufacturing costs and selling and administrative expenses as either variable or fixed. 4. Prepare a contribution margin income statement separating all variable and fixed costs into their own categories. 5. Determine the breakeven......

Words: 614 - Pages: 3

Act 305 Module 2 Assignment Choice 1: Classification of Costs

...ACT 305 Module 2 Assignment Choice 1: Classification of Costs http://homeworklance.com/downloads/act-305-module-2-assignment-choice-1-classification-of-costs/ ACT 305 Module 2 Assignment Choice 1: Classification of Costs Critical Thinking Assignment Choice #1: Classification of Costs Hoover, Inc., uses a job-order coding system. The company’s inventory balances on February 1, the start of its fiscal year, were as follows: Raw Materials Inventory $69,325 Work in Process Inventory $55,100 Finished Goods Inventory $81,256 During the year, the following transactions were completed: 221. Raw materials were purchased on account, $215,221. 222. Raw materials were issued from the storeroom for use in production, $198,000 (70% direct and 223. indirect). 224. Employee salaries and wages were accrued as follows: direct labor, $243,300; indirect labor, $98,750; and selling and administrative salaries, $72,340. 233. Utility costs were incurred in the factory, $79,233. 234. Advertising costs were incurred, $110,600. 235. Prepaid insurance expired during the year, $35,000 (80% related to factory operations, and 20% related to selling and administrative activities). 1. Depreciation was recorded, $192,100 (75% related to factory assets, and 25% related to selling and administrative assets). 1. Manufacturing overhead was applied to jobs at the rate of 160% of direct labor cost. 2. Goods that cost $720,200 to manufacture according to their job cost......

Words: 432 - Pages: 2

Act 305 Module 4 Critical Thinking Assignment Cost of Operation Exercise

...ACT 305 Module 4 Critical Thinking Assignment Cost of Operation Exercise http://homeworklance.com/downloads/act-305-module-4-critical-thinking-assignment-cost-of-operation-exercise/ ACT 305 Module 4 Critical Thinking Assignment Cost of Operation Exercise Critical Thinking Assignment Choice #1: Cost of Operation Exercise Toy Box, Inc., is contemplating expanding sales of their children’s toys. The have an opportunity to stock and sell the X toy that has been a big hit with children everywhere. They must order the X toys from the manufacturer in a minimum order of 100 at a cost of $12 each. They could resell the X toy in their store for $22 each. Due to anticipated demand, Toy Box, Inc., will need to hire an additional part-time cashier at $600 a month, which will be classified as a fixed-cost attributable to the X toy. In addition, they have offered a $1 sales commission per toy to their floor sales representative. Finally, they will include a package of trading cards with every purchase of an X toy, which will cost them an additional $2 each. Instructions: In a well-written paper, answer the questions and perform the calculations described below: 1. To make the project worthwhile, Toy Box, Inc., would require a $5,000 profit per month. What level of sales, in units and in dollars, would be required to reach this target profit? Show all computations completely, in a table inserted into your document. 2. Assume that the venture is undertaken and an......

Words: 367 - Pages: 2

Act 305 Module 8 Portfolio Project Budgeting

...ACT 305 Module 8 Portfolio Project Budgeting http://homeworklance.com/downloads/act-305-module-8-portfolio-project-budgeting/ ACT 305 Module 8 Portfolio Project Budgeting Portfolio Project Option #1: Budgeting Choose an item that you would like to manufacture. You do not actually need to manufacture something, but will proceed through the assignment as if you were planning on manufacturing the item you have selected. The product should require materials and labor and be something that you are familiar with in process from start to finish. The product must be useful and marketable. You can choose something as simple as making chocolate chip cookies, a type of craft, or something more complicated. Consider production as if you were making the product from beginning to end, and not as if using a kit. Perform the following steps: 1. Choose a product to manufacture and describe the manufacturing process. 2. Prepare the following budgets for 1 quarter, broken down monthly, regarding your chosen item: estimated sales budget• estimated direct materials budget• estimated direct labors budget• estimated manufacturing overhead budget• estimated selling and administrative expenses• estimated income statement.• 3. Classify all manufacturing costs and selling and administrative expenses as either variable or fixed. 4. Prepare a contribution margin income statement separating all variable and fixed costs into their own categories. 5. Determine the breakeven......

Words: 614 - Pages: 3

Act 305 Module 2 Assignment Choice 1: Classification of Costs

...ACT 305 Module 2 Assignment Choice 1: Classification of Costs http://homeworklance.com/downloads/act-305-module-2-assignment-choice-1-classification-of-costs/ ACT 305 Module 2 Assignment Choice 1: Classification of Costs Critical Thinking Assignment Choice #1: Classification of Costs Hoover, Inc., uses a job-order coding system. The company’s inventory balances on February 1, the start of its fiscal year, were as follows: Raw Materials Inventory $69,325 Work in Process Inventory $55,100 Finished Goods Inventory $81,256 During the year, the following transactions were completed: 221. Raw materials were purchased on account, $215,221. 222. Raw materials were issued from the storeroom for use in production, $198,000 (70% direct and 223. indirect). 224. Employee salaries and wages were accrued as follows: direct labor, $243,300; indirect labor, $98,750; and selling and administrative salaries, $72,340. 233. Utility costs were incurred in the factory, $79,233. 234. Advertising costs were incurred, $110,600. 235. Prepaid insurance expired during the year, $35,000 (80% related to factory operations, and 20% related to selling and administrative activities). 1. Depreciation was recorded, $192,100 (75% related to factory assets, and 25% related to selling and administrative assets). 1. Manufacturing overhead was applied to jobs at the rate of 160% of direct labor cost. 2. Goods that cost $720,200 to manufacture according to their job cost......

Words: 432 - Pages: 2

Act 305 Module 4 Critical Thinking Assignment Cost of Operation Exercise

...ACT 305 Module 4 Critical Thinking Assignment Cost of Operation Exercise http://homeworklance.com/downloads/act-305-module-4-critical-thinking-assignment-cost-of-operation-exercise/ ACT 305 Module 4 Critical Thinking Assignment Cost of Operation Exercise Critical Thinking Assignment Choice #1: Cost of Operation Exercise Toy Box, Inc., is contemplating expanding sales of their children’s toys. The have an opportunity to stock and sell the X toy that has been a big hit with children everywhere. They must order the X toys from the manufacturer in a minimum order of 100 at a cost of $12 each. They could resell the X toy in their store for $22 each. Due to anticipated demand, Toy Box, Inc., will need to hire an additional part-time cashier at $600 a month, which will be classified as a fixed-cost attributable to the X toy. In addition, they have offered a $1 sales commission per toy to their floor sales representative. Finally, they will include a package of trading cards with every purchase of an X toy, which will cost them an additional $2 each. Instructions: In a well-written paper, answer the questions and perform the calculations described below: 1. To make the project worthwhile, Toy Box, Inc., would require a $5,000 profit per month. What level of sales, in units and in dollars, would be required to reach this target profit? Show all computations completely, in a table inserted into your document. 2. Assume that the venture is undertaken and an......

Words: 367 - Pages: 2

Act 305 Module 8 Portfolio Project Budgeting

...ACT 305 Module 8 Portfolio Project Budgeting http://homeworklance.com/downloads/act-305-module-8-portfolio-project-budgeting/ ACT 305 Module 8 Portfolio Project Budgeting Portfolio Project Option #1: Budgeting Choose an item that you would like to manufacture. You do not actually need to manufacture something, but will proceed through the assignment as if you were planning on manufacturing the item you have selected. The product should require materials and labor and be something that you are familiar with in process from start to finish. The product must be useful and marketable. You can choose something as simple as making chocolate chip cookies, a type of craft, or something more complicated. Consider production as if you were making the product from beginning to end, and not as if using a kit. Perform the following steps: 1. Choose a product to manufacture and describe the manufacturing process. 2. Prepare the following budgets for 1 quarter, broken down monthly, regarding your chosen item: estimated sales budget• estimated direct materials budget• estimated direct labors budget• estimated manufacturing overhead budget• estimated selling and administrative expenses• estimated income statement.• 3. Classify all manufacturing costs and selling and administrative expenses as either variable or fixed. 4. Prepare a contribution margin income statement separating all variable and fixed costs into their own categories. 5. Determine the breakeven......

Words: 614 - Pages: 3

Act 305 Module 4 Critical Thinking Assignment Cost of Operation Exercise

...ACT 305 Module 4 Critical Thinking Assignment Cost of Operation Exercise http://homeworklance.com/downloads/act-305-module-4-critical-thinking-assignment-cost-of-operation-exercise/ ACT 305 Module 4 Critical Thinking Assignment Cost of Operation Exercise Critical Thinking Assignment Choice #1: Cost of Operation Exercise Toy Box, Inc., is contemplating expanding sales of their children’s toys. The have an opportunity to stock and sell the X toy that has been a big hit with children everywhere. They must order the X toys from the manufacturer in a minimum order of 100 at a cost of $12 each. They could resell the X toy in their store for $22 each. Due to anticipated demand, Toy Box, Inc., will need to hire an additional part-time cashier at $600 a month, which will be classified as a fixed-cost attributable to the X toy. In addition, they have offered a $1 sales commission per toy to their floor sales representative. Finally, they will include a package of trading cards with every purchase of an X toy, which will cost them an additional $2 each. Instructions: In a well-written paper, answer the questions and perform the calculations described below: 1. To make the project worthwhile, Toy Box, Inc., would require a $5,000 profit per month. What level of sales, in units and in dollars, would be required to reach this target profit? Show all computations completely, in a table inserted into your document. 2. Assume that the venture is undertaken and an......

Words: 367 - Pages: 2

Act 305 Module 8 Portfolio Project Budgeting

...ACT 305 Module 8 Portfolio Project Budgeting http://homeworklance.com/downloads/act-305-module-8-portfolio-project-budgeting/ ACT 305 Module 8 Portfolio Project Budgeting Portfolio Project Option #1: Budgeting Choose an item that you would like to manufacture. You do not actually need to manufacture something, but will proceed through the assignment as if you were planning on manufacturing the item you have selected. The product should require materials and labor and be something that you are familiar with in process from start to finish. The product must be useful and marketable. You can choose something as simple as making chocolate chip cookies, a type of craft, or something more complicated. Consider production as if you were making the product from beginning to end, and not as if using a kit. Perform the following steps: 1. Choose a product to manufacture and describe the manufacturing process. 2. Prepare the following budgets for 1 quarter, broken down monthly, regarding your chosen item: estimated sales budget• estimated direct materials budget• estimated direct labors budget• estimated manufacturing overhead budget• estimated selling and administrative expenses• estimated income statement.• 3. Classify all manufacturing costs and selling and administrative expenses as either variable or fixed. 4. Prepare a contribution margin income statement separating all variable and fixed costs into their own categories. 5. Determine the breakeven...

Words: 614 - Pages: 3