ACCT2242 SMU Managerial Accouting Goods Cost Calculation Assignment Use MS WORD or EXCEL or both Question #1 (20 marks) E2-43B E2-44B Question # 2 (20

ACCT2242 SMU Managerial Accouting Goods Cost Calculation Assignment Use MS WORD or EXCEL or both

Question #1 (20 marks)

E2-43B

E2-44B

Question # 2 (20 marks)

Indirect labour(IDL)$10,600$11,500

Indirect materials (IDM) 4,400 5,000

Total (MOH)$15,000$16,500

DL(direct labour)$12,000$15,000

MOH = a + b*DL cost

Required:

Determine parameters a and b. (6 marks)

If DL cost is$13,200, how much would be allowed for IDL and IDM, individually?

Hint: Find the linear relationship between MOH and IDM (14 marks)

That is estimate MOH = c + d*IDM

Question #3 (40 marks)

Year 1Year 2

Units produced1,0001,000

Units sold 7001,300

Total sales$7,000$13,000

Total costs

Production:

Variable$2,000$2,000

Fixed 1,800 1,800

Selling and administration:

Variable$ 700$1,300

Fixed 2,800 2,800

(For Year 1)

Required:

Prepare income statement using variable costing. (8 marks)

Prepare income statement using absorption costing (8 marks)

Reconcile the differences in income. (4 marks)

(For Year 2)

Required:

Prepare income statement using variable costing. (8 marks)

Prepare income statement using absorption costing (8 marks)

Reconcile the differences in income. (4 marks)

Question #4 (20 marks)

P3-72B ACCT 2242 Summer#1 2019
ASSIGNMENT # 1
DUE
May 16, 2019
Use MS WORD or EXCEL or both
Question #1 (20 marks)
•
E2-43B
•
E2-44B
Question # 2 (20 marks)
Indirect labour(IDL)
$10,600
$11,500
4,400
5,000
Total (MOH)
$15,000
$16,500
DL(direct labour)
$12,000
$15,000
Indirect materials (IDM)
MOH = a + b*DL cost
Required:
Determine parameters a
and
b. (6 marks)
If DL cost is$13,200, how much would be allowed for IDL and IDM, individually?
Hint: Find the linear relationship between MOH and IDM (14 marks)
That is estimate MOH = c + d*IDM
Question #3 (40 marks)
Year 1
Year 2
1,000
1,000
Units sold
700
1,300
Total sales
$7,000
Units produced
Total costs
Production:
$13,000
Variable
Fixed
$2,000
$2,000
1,800
1,800
$ 700
$1,300
2,800
2,800
Selling and administration:
Variable
Fixed
•
(For Year 1)
Required:
•
•
•
Prepare income statement using variable costing. (8 marks)
Prepare income statement using absorption costing (8 marks)
Reconcile the differences in income. (4 marks)
•
(For Year 2)
Required:
•
•
•
Prepare income statement using variable costing. (8 marks)
Prepare income statement using absorption costing (8 marks)
Reconcile the differences in income. (4 marks)
Question #4 (20 marks)
P3-72B
company star
$12.800 of Inventory. Prepa
year,
learning Objective 5
E2-42B Compute direct materials used am
Lawrences Die Cuts is preparing its cost of goods manufactured schedule at year end.
had a beginning balance of $18,000 and an ending balance of $14,000. During the
$135,000 while manufacturing overhead amounted to $155,000. The work in process
Lawrence purchased $66,000 of direct materials. Direct labour for the year totalled
inventory account had a beginning balance of $27,000 and an ending balance of $21.00
Compute the cost of goods manufactured for the year. (Hint: The first step is to calculate
the direct materials used during the year.)
E2-43B Compute cost of goods manufactured and cost of goods sold
(Learning Objective 5)
Company for the most recent year using the amounts described below. Assume that raw
Compute the cost of goods manufactured and cost of goods sold for South Marine
materials inventory contains only direct materials.
End
of Year
Beginning
of Year
$28,000
44,000
13,000
End
of Year
$30,000
Raw materials inventory
Work in process
Finished goods inventory
Purchases of direct materials
Direct labour
Indirect labour..
37,000
29,000
76,000
81,000
…. $10,500
Insurance on plant
Depreciation–plant building
and equipment …….
13,400
Repairs and maintenance-plant…
Marketing expenses………
General and administrative expenses……… 26,500
4,300
78,500
41,000
Building Blocks of Manag
E2-44B Continues E2-43B: prepare income statement (Learning Objective 5)
Prepare the income statement for South Marine Company for the most recent year, using
the information in E2-43B. Assume that the company sold 37,000 units of its product at a
price of $14 each during the year.
E2-45B Work backward to find missing amounts (Learning Objective 5)
Great Sounds manufactures and sells a new line of radios. Unfortunately, Great Sounds
suffered serious fire damage at its home office. As a result, the accounting records for
October were partially destroyed and completely jumbled. Great Sounds has hired you to
help figure out the missing pieces of the accounting puzzle. Assume that Great Sounds
raw materials inventory contains only direct materials.
Cost Behaviour
3
P6-72B Prepare absorption and variable costing income statements
(Learning Objective 7)
Marty’s Entrees produces frozen meals, which it sells for $9 each. The company uses the
overhead rate based on the actual number of meals produced that month. All costs and
FIFO inventory costing method, and it computes a new monthly fixed manufacturing
production levels are exactly as planned. The following data are from Marty’s Entrees’ first
2 months in business:
Sales ..
Production ……
January
February
1,400 meals 1,800 meals
2,000 meals 1,400 meals
$ 5
$ 5
$ 1
$ i 1
$ 700
$ 700
$ 500
$ 500
Variable manufacturing expense per meal.
Sales commission expense per meal……….
Total fixed manufacturing overhead
Total fixed marketing and administrative expenses.
Requirements
1. Compute the product cost per meal produced under absorption costing and under
variable costing. Do this first for January and then for February.
2. Prepare separate monthly income statements for January and for February, using (a)
absorption costing and (b) variable costing.
3. Is operating income higher under absorption costing or variable costing in January? In
February? Explain the pattern of differences in operating income based on absorption
costing versus variable costing.

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