MANAGERIAL ACCOUNITNG ASSIGNMENT
Must be done in APA format
Question 1
Roller Paint Co. reported the following data for the month of September. There were no beginning inventories and all units were completed (no work in process).
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?Total Cost
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Number of Units
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?Unit Cost
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Manufacturing costs:
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Variable
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$465,000
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30,000
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$15.50
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Fixed
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210,000
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30,000
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7.00
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Total
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$675,000
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$22.50
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Selling and administrative expenses:
Variable $2 per unit sold
Fixed $39,000
In the month of September, 28,000 of the 30,000 units manufactured were sold at a price of $80 per unit.
(a) Prepare a variable costing income statement.
(b) Prepare an absorption costing income statement.
(c) Briefly explain why there is a difference in income from operations between the two methods.
Question 2
On August 1, Jones Corporation's Packaging Department had work in process inventory of 8,000 units that were75% complete with respect to materials and 30% complete with respect to conversion costs. The cost of theseunits was $99,525 ($62,000 transferred-in from previous departments, $28,775 in materials, and $8,750 in labor andoverhead). During August, 125,000 units were transferred into the department. These units had accumulated costsin previous departments of $1,418,560. The packaging department incurred costs of $799,225 for materials and$498,010 for conversion costs in August and transferred 131,000 units out of the department. The 2,000 unitsremaining in ending inventory are 50% complete with respect to materials and 20% complete with respect toconversion costs. Jones uses the average cost method to cost its inventories.
(a) Calculate the cost per equivalent unit for transferred-in costs, materials, and conversion costs.
(b) Calculate the cost of the units transferred out of the department.
(c) Calculate the cost of the ending inventory.
Question 3
Discuss how job order cost information is used in decision making. What are some possible reasons that actualcost of materials would exceed expected costs for a job?
Question 4
Discuss the use of job order costing for professional services businesses. What are the similarities and differencesbetween service and manufacturing business job order costing?