ACC 212 Lecture Notes - Lecture 4: Ideal Standard, Outsourcing, Deutsche Luft Hansa

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silverchimpanzee364

30 Jun 2016

School

University of Miami

Department

Accounting Business Administration

Course

ACC 212

Professor

Nicole Nelson

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Document Summary

Management accounting: for internal decision makers, timely, no rules, for the present. Financial accounting: for external decision makers, follow gaap, in the past. Purchase order: document a company uses to order materials from vendors. Cost object: any activity or item for which a separate cost measurement is desired. Cost of materials used: = purchased materials + beginning raw materials ending raw materials. Overhead incurred: = factory supplies used + depreciation on factory machines + factory security. Cost of goods manufactured: = materials used + labor + manufacturing oh + beginning wip ending wip. Cost of goods sold for current period: = beginning finished goods + cost of goods manufactured ending finished. Work in process inventory is debited when the labor costs are incurred by workers who have produced the products. When finished goods are transferred, you debit the account finished goods inventory. For goods that are sold: you debit cost of goods sold and credit finished goods.

Related Questions

Required information

[The following information applies to the questions displayed below.]

Sierra Company manufactures woven blankets and accounts for product costs using process costing. Data below are for one of its processing departments. The following information is available regarding its May inventories

	Beginning Inventory		Ending Inventory
Raw materials inventory	$	65,000	$	77,000
Work in process inventory		441,500		555,000
Finished goods inventory		632,000		517,000

The following additional information describes the company's production activities for May.


Raw materials purchases (on credit)	$	250,000
Factory wages cost (paid in cash)		1,562,000
Other overhead cost (Other Accounts credited)		38,000
Materials used
Direct	$	158,000
Indirect		80,000
Labor used
Direct	$	800,000
Indirect		762,000
Overhead rate as a percent of direct labor		110	%
Sales (on credit)	$	3,500,000

The predetermined overhead rate was computed at the beginning of the year as 110% of direct labor cost.

1. Compute the cost of products transferred from production to finished goods and cost of goods sold.

Raw Materials (RM)	Work in Process (WIP)






Factory Wages Payable	Finished Goods (FG)





Factory Overhead	Income Statement (Partial)


		$0


	Cost of goods transferred
	Cost of goods sold

ceriseplatypus220

The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.

	April 30		May 31
Inventories
Raw materials	$	42,000	$	38,000
Work in process		9,800		18,200
Finished goods		63,000		33,000
Activities and information for May
Raw materials purchases (paid with cash)				194,000
Factory payroll (paid with cash)				330,000
Factory overhead
Indirect materials				13,000
Indirect labor				65,000
Other overhead costs				111,000
Sales (received in cash)				1,200,000
Predetermined overhead rate based on direct labor cost				55	%

Compute the following amounts for the month of May using T-accounts.

1.	Cost of direct materials used.
2.	Cost of direct labor used.
3.	Cost of goods manufactured.
4.	Cost of goods sold.*
5.	Gross profit.
6.	Overapplied or underapplied overhead.

*Do not consider any underapplied or overapplied overhead.

Raw Materials (RM)		Work in Process (WIP)




	0		0

Factory Payroll		Finished Goods (FG)



	0		0

Factory Overhead

Income statement (partial)


	$0

carminecamel80

Required information

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.]

The following data is provided for Garcon Company and Pepper Company.

	Garcon Company			Pepper Company
Beginning finished goods inventory		$	12,100	$	17,950
Beginning work in process inventory			19,000		23,100
Beginning raw materials inventory			11,700		10,050
Rental cost on factory equipment			28,750		25,900
Direct labor			20,600		37,400
Ending finished goods inventory			20,600		13,100
Ending work in process inventory			22,900		21,600
Ending raw materials inventory			6,800		9,200
Factory utilities			10,650		14,000
Factory supplies used			11,500		5,100
General and administrative expenses			31,500		56,000
Indirect labor			2,350		8,680
RepairsâFactory equipment			7,340		3,750
Raw materials purchases			37,000		63,500
Selling expenses			57,200		48,100
Sales			204,030		327,510
Cash			22,000		21,700
Factory equipment, net			232,500		148,825
Accounts receivable, net			15,800		24,950
Exercise 14-8 Cost of goods manufactured and cost of goods sold computation LO P1, P2 Required: 1. Complete the table to find the cost of goods manufactured for both Garcon Company and Pepper Company for the year ended December 31, 2017. 2. Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2017.

Required 1. Complete the table to find the cost of goods manufactured for both Garcon Company and Pepper Company for the year ended December 31, 2017.

	Garcon Company	Pepper Company
Direct materials


Raw materials available for use	0	0

Direct materials used	0	0

Factory overhead






Total factory overhead	0	0
Total manufacturing costs

Total cost of work in process	0	0

Cost of goods manufactured	$0	$0

Required 2:.

Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2017.

	Garcon Company	Pepper Company
Cost of goods available for sale
Cost of goods sold	$0	$0

ultramarinetrout400

ACC 212 Lecture Notes - Lecture 4: Ideal Standard, Outsourcing, Deutsche Luft Hansa

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