Chapter 19 Working Papers

8/3/2019 Chapter 19 Working Papers

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Ch19 SE1 to SE2

Chapter 19Working Papers

COST CONCEPTS ANDCOST ALLOCATION

Chapter 19, SE 1.

1.

2.

3.

Chapter 19, SE 2.


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Ch19 SE3 to SE4

Chapter 19, SE 3.

Materials Inventory, ending balance:

Work in Process Inventory, ending balance:

Finished Goods Inventory, ending balance:

Chapter 19, SE 4.

1.

2.

3.

4.

5.

6.

7.


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Ch19 SE5 to SE7

Chapter 19, SE 5.

1.

2.

3.

4.

5.

6.

7.

Chapter 19, SE 6.

Product unit cost computed:

Prime costs and conversion costs per unit computed:

Prime Conversion

Costs Costs

Chapter 19, SE 7.


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Ch19 SE8 to SE9

Chapter 19, SE 8.

=Total Estimated Overhead Costs

Total Estimated Service Requests

=

service requests

= per service request

Chapter 19, SE 9.

Overhead Costs Applied =

x

Predetermined OverheadRate per Service Request


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Ch19 E1 to E3

Chapter 19, E 1.

1.

2.

3.

4.

Chapter 19, E 2.

Cost Classification

Product Variable Value-adding or Direct

or Period or Fixed Nonvalue-adding or Indirect

Example: Bicycle tire Product Variable Value-adding Direct

1.

2.

3.

4.

5.

Chapter 19, E 3.

1.

2.

3.


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Ch19 E4

Chapter 19, E 4.

Radio Company

Statement of Cost of Goods Manufactured

For the Month of August


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Ch19 E5 to E7

Chapter 19, E 5.

Oak Loblolly Maple Spruce

Division Division Division Division

Direct materials used $ 3 $ 7 (g) $ 8

Direct labor (a) 6 4 4

Overhead 1 3 2 (j)

Total manufacturing costs $ 4 (d) (h) $14

Beginning work in process inventory 2 (e) 3 (k)

Ending work in process inventory (b) ( 3) ( 2) ( 5)

Cost of goods manufactured $ 6 ($3) $1 (l)

Beginning finished goods inventory 3 (f) 5 7

Ending finished goods inventory ( 2) ( 6) (i) ( 9)

Cost of goods sold (c) ($9) $6 ($ 2)

Chapter 19, E 6.

1.

2.

3.

4.

5.

6.

7.

8.

9.

Chapter 19, E 7.

1.

2.

3.


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Ch19 E8

Chapter 19, E 8.

1. Missing data for the retail organization calculated.

First Quarter:

Second Quarter:


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Ch19 E8 (2)

Chapter 19, E 8.

Third Quarter:

Fourth Quarter:


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Ch19 E8 (3)

Chapter 19, E 8.

2. Missing data for the manufacturing organization calculated.

First Quarter:

Second Quarter:


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Ch19 E8 (4)

Chapter 19, E 8.

Third Quarter:

Fourth Quarter:


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Ch19 E9 to E10

Chapter 19, E 9.

Memo

Date:

To: Iggy Paulo

From: Reza Seca

Topic: Purpose of Source Documents

Chapter 19, E 10.

1.

2.

3.

4.

5.

6.

7.


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Ch19 E11

Chapter 19, E 11.

1. Unit cost computed.

Total Unit Cost

Cost Items Cost 10,550 )

2. Recommendation made.

3. Prime costs and conversion costs per unit computed.

Prime Conversion

Costs Costs

( Total


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Ch19 E12

Chapter 19, E 12.


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Ch19 E13

Chapter 19, E 13.

1 and 2. Past year's and next year's predetermined overhead rates computed.

(1) (2) (3)

Next Year's Next Year

Past Year Percentage (1 2)


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Ch19 E14 to E15

Chapter 19, E 14.

1. Anticipated overhead determined.

2. Overhead rate computed.

3. Overhead applied.

Chapter 19, E 15.

1. Overhead applied to operations computed.

2. Overapplied overhead computed.

3. Effect of overapplied overhead on Cost of Goods Sold determined.


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Ch19 P1

Chapter 19, C 6.

1. Accounts in manufacturing and retail organizations identified.

a.

b.

2. Key figures calculated.

a.

Gross Margin = +

= +

=

b.

=

=

=

c.

= +

= +

=

d.

=

=

=

3. Manager insight: Use of inventory method discussed.

Cost ofGoods Sold

Cost of GoodsAvailable for Sale

Cost of GoodsManufactured


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Ch19 P2

Chapter 19, P 2.

1 and 2.

Department 60:

Department 61:

Total unit cost

3. Manager insight: Analysis of the Milo Company order.


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Ch19 P2 (2)

Chapter 19, P 2.

4. Prime costs and conversion costs per unit computed.

Department 60 Department 61

Prime Conversion Prime Conversion

Costs Costs Costs Costs


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Ch19 P3

Chapter 19, P 3.

1. Predetermined overhead rate computed.

Natural Cosmetics Company

Overhead Rate Computation Schedule

For this Year

(1) (2) (3)Projected Projection

Percentage This Year

Overhead Cost Item Last Year Increase

Predetermined overhead rate for this year:

per machine hour

*Rounded.

(1 2)

*


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Ch19 P3 (2)

Chapter 19, P 3.

2. Amount of applied overhead determined

Machine Predetermined Overhead

Job No. Hours Overhead Rate Applied*

* Rounded.

3. Computation and adjustment of overapplied overhead.


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Ch19 P4

Chapter 19, P 4.

1. Total costs assigned to the Grater order.

Traditional

Costing

Method


23/38

Ch19 P4 (2)

Chapter 19, P 4.

2. Manager insight: Cost difference discussed.


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Ch19 P5

Chapter 19, P 5.

*


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Ch19 P6

Chapter 19, P 6.

1. Cost per patient day computed.

2 and 3. Billing per patient day computed.

2. Normal 3. Industry Average

Cost Billing Billing Approach

4. Billing procedure recommended.

*


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Ch19 P7

Chapter 19, P 7.

1. Predetermined overhead rate computed.


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Ch19 P7(2)

Chapter 19, P 7.

2. Amount of applied overhead determined.

Actual

Overhead

Job No. Machine Hours Rate Applied*

*Rounded.

3. Computation and adjustment of underapplied overhead.

4. Overhead rate discussed.


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Ch19 P8

Chapter 19, P 8.

1. Total costs assigned to the Kent order.

Traditional

Costing

Method


29/38

Ch19 P8 (2)

Chapter 19, P 8.

2. Manager insight: Cost differences discussed.


30/38

Ch19 C1

Chapter 19, C 1.

Traceability Cost

Sample Costs to Product Behavior Value Attribute


31/38


32/38

Ch19 C2 (2)

Chapter 19, C 2.

3.

a.

b.c.

d.

e.


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Ch19 C3

Chapter 19, C 3.

1. Ratios computed.

a. Ratios of cost of direct materials used, direct labor, and total overhead to total

manufacturing costs.

This Year Last Year

Amount Ratio Amount Ratio

b. Ratios of sales salaries and commission expense, advertising expense, other

selling expenses, administrative expenses, and total selling and administrative

expenses to sales.

This Year Last Year


c. Ratios of gross margin and net income to sales.

This Year Last Year



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Ch19 C3 (2)

Chapter 19, C 3.

2. Comments on ratios.

a.

b.

c.

3. Other factors and ratios suggested.


35/38

Ch19 C4

Chapter 19, C 4.

1. Statement of cost of goods manufactured and income statement prepared.


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Ch19 C4 (2)

Chapter 19, C 5.

2.

3.

a.

b.

c.

d.

4. a.

b.

c.

d.

e.


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Ch19 C5

Chapter 19, C 5.


38/38

Chapter 19, C 6.