ACCT 212 Connect Homework 1 Managerial Accounting Assignment solutions complete answers

ACCT 212 Connect Homework 1 Managerial Accounting Assignment solutions complete answers 

 

Listed below are costs of services provided by an airline company. Consider the cost object to be a flight. Flight attendants and pilots are paid based on hours of flight time.
 
Classify each cost as direct, indirect, selling, or general and administrative.

1. Depreciation on office equipment
2. Airport landing fee (per flight)
3. Human resources staff salaries
4. Salesperson commissions
5. Office headquarters rent
6. Office equipment insurance
7. Travel agent salaries
8. Co-pilot wages
 

Cost
Classification
1. Depreciation on office equipment
 
2. Airport landing fee (per flight)
 
3. Human resources staff salaries
 
4. Salesperson commissions
 
5. Office headquarters rent
 
6. Office equipment insurance
 
7. Travel agent salaries
 
8. Co-pilot wages
 
 

Selected costs related to Apple’s iPhone are listed below.
 
Classify each cost as either direct materials, direct labor, factory overhead, selling expenses, or general and administrative expenses.

1. Wages for factory equipment operators
2. Camera component
3. Office accountant salary
4. Display screen
5. Depreciation (straight-line) on robotic equipment used in assembly
6. Salary of chief executive officer
7. Depreciation on office equipment
8. Factory quality control supervisor salary
 

1. Uniforms provided for each factory worker
 
2. Wages for retail store salesperson
 
3. Glue to hold iPhone cases together
 
4. Wages for employees who maintain assembly equipment
 
5. Wages for assembly workers
 
6. Battery component
 
7. Microphone component
 
8. Wages for factory equipment operators
 
 

The following data is provided for Garcon Company and Pepper Company for the year ended December 31.
 

 
Garcon Company
Pepper Company
Finished goods inventory, beginning
$ 12,300
$ 16,900
Work in process inventory, beginning
18,100
22,500
Raw materials inventory, beginning
10,100
14,550
Rental cost on factory equipment
28,500
22,900
Direct labor
22,400
43,800
Finished goods inventory, ending
17,000
13,300
Work in process inventory, ending
23,500
17,400
Raw materials inventory, ending
5,500
8,200
Factory utilities
14,850
12,000
General and administrative expenses
24,500
51,500
Indirect labor
12,850
13,960
Repairs—Factory equipment
7,940
2,600
Raw materials purchases
44,000
63,000
Selling expenses
58,800
50,500
Sales
278,160
390,040
Cash
24,000
15,700
Accounts receivable, net
16,400
22,700
1. Complete the table to find the cost of goods manufactured for both Garcon Company and Pepper Company for the year ended December 31.
2. Complete the table to calculate the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31.

 

1. Prepare income statements for both Garcon Company and Pepper Company.
2. Prepare the current assets section of the balance sheet for each company.

 

1. Compute the total prime costs for both Garcon Company and Pepper Company.
2. Compute the total conversion costs for both Garcon Company and Pepper Company.

 

 
Unimart
Bare Manufacturing
Beginning inventory
 
 
Merchandise
$ 174,000
 
Finished goods
 
$ 348,000
Cost of merchandise purchased
450,000
 
Cost of goods manufactured
 
890,000
Ending inventory
 
 
Merchandise
74,000
 
Finished goods
 
68,000

Compute cost of goods sold for each of these two companies.

 

End-of-year current assets for two different companies follow. One is a manufacturer, Rayzer Skis Manufacturing, and the other, Sunrise Foods, is a merchandiser.
 

Account
Company 1
Company 2
Cash
$ 6,000
$ 4,000
Merchandise inventory
49,750
—
Raw materials inventory
—
46,750
Work in process inventory
—
34,000
Finished goods inventory
—
54,000
Accounts receivable, net
64,000
69,000
Prepaid expenses
3,000
600

1. Identify which set of numbers relates to the manufacturer and which to the merchandiser.
2a. & 2b. Prepare the current asset section of the balance sheet at December 31 for each company.

 

Use the following selected account balances of Delray Manufacturing for the year ended December 31.
 

Sales
$ 1,200,000
Raw materials inventory, beginning
52,000
Work in process inventory, beginning
68,000
Finished goods inventory, beginning
88,000
Raw materials purchases
239,000
Direct labor
287,000
Indirect labor
43,000
Repairs—Factory equipment
34,000
Rent cost of factory building
68,000
Selling expenses
109,000
General and administrative expenses
174,000
Raw materials inventory, ending
62,000
Work in process inventory, ending
82,000
Finished goods inventory, ending
106,000
Prepare its schedule of cost of goods manufactured for the year ended December 31.

 

Prepare an income statement for Delray Manufacturing (a manufacturer). Assume that its cost of goods manufactured is $647,000.

 

Beck Manufacturing reports the following information in T-accounts for the current year.
 

Raw Materials Inventory
Debit
Credit
Beginning
10,100
 
 
Purchases
56,500
 
 
Available for use
66,600
 
 
 
 
Direct materials used
49,500
Ending
17,100
 
 
 

Work in Process Inventory
Debit
Credit
Beginning
15,600
 
 
Direct materials used
49,500
 
 
Direct labor
29,100
 
 
Overhead
60,000
 
 
 
154,200
 
 
 
 
Cost of goods manufactured
141,900
Ending
12,300
 
 
 

Finished Goods Inventory
Debit
Credit
Beginning
19,600
 
 
Cost of goods manufactured
141,900
 
 
Available for sale
161,500
 
 
 
 
Cost of goods sold
143,000
Ending
18,500
 
 

1. Prepare the schedule of cost of goods manufactured for the year.
2. Compute cost of goods sold for the year.

 

The following year-end information is taken from the December 31 adjusted trial balance and other records of Leone Company.
 

Advertising expense
$ 48,000
Depreciation expense—Office equipment
27,000
Depreciation expense—Selling equipment
28,000
Depreciation expense—Factory equipment
70,000
Raw materials purchases (all direct materials)
800,000
Maintenance expense—Factory equipment
42,000
Factory utilities
37,000
Direct labor
480,000
Indirect labor
72,000
Office salaries expense
43,000
Rent expense—Office space
26,000
Rent expense—Selling space
62,000
Rent expense—Factory building
149,000
Sales salaries expense
358,000
Required:
Identify each cost as either a product cost or a period cost. If a product cost, classify it as direct materials, direct labor, or factory overhead. If a period cost, classify it as a selling expense or a general and administrative expense. (Leave no cell blank. Enter "NA - Not a product cost" or "NA - Not a period cost" for expenses that are not product cost or period cost.)

 

Using the following additional information for Leone Company, complete the requirements below.
 

Raw materials inventory, beginning
$ 160,000
Raw materials inventory, ending
165,000
Work in process inventory, beginning
48,000
Sales
2,670,000
Work in process inventory, ending
52,000
Finished goods inventory, beginning
67,000
Finished goods inventory, ending
75,000

Required:
1. Prepare the schedule of cost of goods manufactured for the current year.
2. Prepare the current year income statement.

 

Shown here are annual financial data for a merchandising company and a manufacturing company.
  

 
Music World Retail
Wave-Board Manufacturing
Beginning inventory
 
 
Merchandise
$ 145,000
 
Finished goods
 
$ 370,000
Cost of merchandise purchased
260,000
 
Cost of goods manufactured
 
592,000
Ending inventory
 
 
Merchandise
100,000
 
Finished goods
 
260,000
   
Required:
Prepare the cost of goods sold section of the income statement for each company.