Assignment 1 -
Consider the places of employment of the team members or businesses with which the team is familiar and the industries in which they operate.
Create a 12-slide presentation, including detailed speaker notes that act as the script of the presentation or a voiceover, of an analysis of cost accounting systems. Include the following in the presentation:
1. Describe the purpose and elements of an effective cost accounting system.
2. Differentiate the 3 types of cost accounting systems (job order, process, and hybrid). Include detailed descriptions of each.
3. Determine when and why it is appropriate to use each type of system and include an explanation.
4. Recommend the best accounting system for the team members' respective places of employment or a business where they are interested in pursuing employment. Provide a rationale for the recommendations. If not enough information is available for all companies, provide suggested considerations needed to make the determination.
Assignment 2 -
Q1. Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $300,000 for the year, and machine usage is estimated at 125,000 hours. For the year, $322,000 of overhead costs is incurred and 130,000 hours are used.
Compute the manufacturing overhead rate for the year.
What is the amount of under or overapplied overhead at December 31?
Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold.
Q2. The ledger of American Company has the following work in process account.
|
Work in Process- Painting
|
|
5/1 Balance 3,590
|
5/31 Transferred out ?
|
|
5/31 Materials 5,160
|
|
|
5/31 Labor 2,530
|
|
|
5/31 Overhead 1,380
|
|
|
5/31 Balance ?
|
|
Production records show that there were 400 units in the beginning inventory, 30% complete, 1,600 units started, and 1,700 units transferred out. The beginning work in process had materials cost of $2,040 and conversion costs of $1,550. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.
How many units are in process at May 31?
What Is the unit materials cost for May?
Q3. Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations.
|
|
Standard
|
Custom
|
|
Direct labor costs
|
$50,000
|
$100,000
|
|
Machine hours
|
1,000
|
1,000
|
|
Setup hours
|
100
|
400
|
Total estimated overhead costs are $240,000. Overhead cost allocated to the machining activity cost pool is $140,000, and $100,000 is allocated to the machine setup activity cost pool.
Compute the overhead rate using the traditional (plantwide) approach.
Compute the overhead rates using the activity-based costing approach.