Maliyet Muhasebesi COST ACCOUNTING FATD H UNIVERSITY FACULTY OF ECONOMIC AND ADMINISTRATIVE SCIENCES DEPARTMENT OF MANAGEMENT MAN 305 COST ACCOUNTING Instructor: Ali COSKUN Duration: 75 Minutes November 14, 2007 QUESTIONS Question 1. (25 points) Fountain Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted: Work-in-process inventory (January 1) ……… $ 140,400 Work-in-process inventory (March 31)………. 171,000 Finished goods inventory (January 1)………… 540,000 Finished goods inventory (March 31)………… 510,000 Depreciation of manufacturing equipment …… 264,000 Depreciation of office equipment ………….… 123,600 Direct manufacturing labor …………………... 480,000 Direct materials used ………………………… 378,000 General office expenses ……………………… 305,400 Indirect manufacturing labor ………………… 186,000 Indirect materials used ……………………….. 84,000 Marketing distribution costs …………………. 30,000 Miscellaneous plant overhead ……………….. 135,000 Plant utilities ……………………………….... 92,400 Property taxes on manufacturing plant building 28,800 Sales Revenue………………………………… 2,000,000 Salespersons' company vehicle costs ………… 12,000 a. Prepare a cost of goods manufactured schedule for the quarter. b. Prepare a cost of goods sold schedule for the quarter. c. Prepare an income statement for the quarter. Question 2. (25 points) Talent Company uses a job-order costing system for manufacturing parts of calculators. Summary of the transactions for the month January included: a. Materials purchased $30,000. b. Direct materials used $23,000 and indirect material used $2,500. c. Direct labor incurred, $22,000, wages will be paid in February. d. Factory utilities were $1,200, Indirect manufacturing labor costs were $7,500, and depreciation on the equipment was $1,500. Utilities expense was paid in January, wages will be paid in February. d. Indirect manufacturing cost applied 500 machine hours at $25 per machine hour. f. Costs of orders completed, $56,000. g. Costs of goods sold, $50,000. Prepare journal entries to summarize January transactions. Question 3. (25 points) Glavin Corporation manufactures two products, Ordinary and Complex. The company estimated manufacturing overhead would incur $305,000 in manufacturing overhead costs and produce 5,000 units of Ordinary and 20,000 units of Complex during the current year. Unit price and unit costs for materials and direct labor are: Ordinary Complex Direct material cost per unit $ 9 $ 20 Direct labor cost per unit $ 7 $ 15 Selling price per unit $ 35 $ 105 The company's overhead costs can be allocated to three major activities. These activities and the amount of overhead cost to be allocated to each activity for the current year are given below: Estimated Expected Activity Overhead Product Product Activity Cost Pools Costs A B Total Machine setups required $ 170,000 700 1,000 1,700 Purchase orders issued 37,000 300 200 500 Maintenance requests issued 98,000 400 600 1,000 $ 305,000 Using the data above and an activity-based costing approach, determine the unit manufacturing cost of each product for the current year. Question 4. (25 points) Tough Products Company manufactures pipes and applies manufacturing costs to production at a budgeted indirect-cost rate of $8 per direct labor- hour. The following data are obtained from the accounting records for June 2006: Direct materials $400,000 Direct labor (8,000 hours @ $11/hour) $ 88,000 Indirect labor $ 10,000 Plant facility rent $ 40,000 Depreciation on plant machinery $ 20,000 Sales salaries $ 30,000 Administrative expenses $ 40,000 a. What actual amount of manufacturing overhead costs was incurred during June 2006? b. What amount of manufacturing overhead was allocated to all jobs during June 2006? c. For June 2006, was manufacturing overhead underallocated or overallocated? d. Prepare a journal entry to write off the difference between allocated and actual overhead directly to Cost of Goods Sold.