Assignment
1. Prepare general journal entries for the following transactions of a manufacturing company for the month of January 2016.
a. In January, 400 hours of direct labor were worked at $42.00 per hour
b. In January, $600,000 of raw materials were requisitioned (used) for production.
c. In January, the total cost of all jobs completed was $1,500,000.
2. JoyPetro Company refines a variety of petrochemical products. The following data are from the firm's Amarillo plant.
Required: Compute the equivalent units of direct material and conversion for the month of July. Use the weighted-average method of process costing.
3. A hotel pays the phone company $200 per month plus $.30 for each call made. During January 10, 000 calls were made. In February 8,000 calls were made.
Required:
a. Calculate the hotel's phone bills for January and February.
b. Calculate the cost per phone call in January and in February.
c. Separate the January phone bill into its fixed and variable components
4. The following selected data were taken from the accounting records of the Joy Manufacturing Company. The company uses direct-labor hours as its cost driver for manufacturing overhead costs. Required: Using the high-low method, determine the monthly fixed portion and the variable.