Question 1 - Schulberg company, a job-order costing firm, worked on three jobs in July. Data are as follows:
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Job 94
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Job 95
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Job 96
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|
Balance, July 1
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$18,450
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$0
|
$0
|
|
Direct Materials
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$10,450
|
$12,300
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$16,150
|
|
Direct Labor
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$16,000
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$12,200
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$24,000
|
|
Machine Hours
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500
|
300
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1,000
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Overhead is applied to jobs at the rate of $20 per machine hour. By July 31, Jobs 94 and 96 were completed. Jobs 90 and 94 were sold. Job 95 remained in process. On July 1, the balance in Finished Goods was $49,000 (consisting of Job 90 for $25,600 and Job 92 for $23,400). Schulberg prices its jobs at cost plus 20 percent. During July, variable marketing expenses were 5 percent of sales, and fixed marketing expenses were $2,000; administrative expenses were $4,800.
Required:
1. Prepare job-order cost sheets for all jobs in process during July, showing all costs through July 31.
2. Calculate the balance in Work in Process on July 31.
3. Calculate the balance in Finished Goods on July 31.
4. Calculate Cost of Goods Sold for July.
5. Calculate operating income for Schulberg Company for the month of July.
Question 2 - Millie Company produces a product that passes through an assembly process and a finishing process. All manufacturing costs are added uniformity for both processes. The following information was obtained for the assembly department for June:
A. A. WIP, June 1, had 24,000 units (60 percent completed) and the following costs:
Direct Materials $186,256
Direct labor 64, 864
Overhead applied 34, 400
B. During June, 70,000 units were completed and transferred to the finishing department, and the following costs were added to production:
Direct materials $267,880
Direct labor 253,000
Overhead applied 117,600
C. On June 30, there were 10,000 partially completed units in process. These units were 70 percent complete.
Required - Prepare a production report for the assembly department for June using the weighted average method of costing. The report should disclose the physical flow of units, equivalent units, and unit costs and should track the disposition of manufacturing costs.
Question 3 - Using the Millie Company above, prepare a production report for the assembly department for June using the FIFO method of costing. The report should disclose the physical flow of units, equivalent units, and unit costs and should track the disposition of manufacturing costs. (Carry the unit cost computation to four decimal places.)