Question: Fairfield Company’s payroll costs for the
Fairfield Company’s payroll costs for the most recent month are summarized here:
1. Calculate how much of the labor costs would be added to the following accounts:
a. Work in Process Inventory.
b. Manufacturing Overhead.
c. Selling, General, and Administrative Expenses.
2. Explain why some labor costs are recorded as work in process, some as manufacturing overhead, and some as period costs.
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> Use the following terms to complete the sentences that follow; terms may be used once, more than once, or not at all. Activity proportion Activity rate Activity-based management (ABM) Batch-level Cost driver Cost-plus pricing External failure costs First
> For each of the following activities, indicate the appropriate category (unit, batch, product, or facility level) and suggest a possible cost driver for each pool: 1. Factory utilities. 2. Machine setups. 3. Research and development for a new product. 4.
> Patterson makes electronic components for handheld games and has identified several activities as components of manufacturing overhead: factory rent, factory utilities, quality inspections, materials handling, machine setup, employee training, machine ma
> Aquazona Pool Company is a custom pool builder. The company recently completed a pool for the Drayna family (Job 1324) as summarized on the incomplete job cost sheet below. The company applies overhead to jobs at a rate of $15 per direct labor hour. Requ
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> Refer to the activities presented in M4–16. Classify each cost as facility, product, batch, or unit level. Data from M4-16: Canterbury Corp. has identified the following activities in its manufacturing process. Indicate whether each activity is value-ad
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> Refer to the information provided in M4–13. Using activity proportions, determine the amount of overhead assigned to Controller Services. Data from M4-13: Sunrise Accounting provides basic tax services and “rent-a-con
> Refer to the information provided in M4–13. Barry Gold, a tax client of Sunrise Accounting, requires 20 miles of transportation, 50 hours of processing time, and 3 hours of office support. Using the activity rates calculated in M4â
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> Refer to the information presented in M4–10. Suppose the Luxury boat requires 4,680 machine hours, 70 batches, and 208 inspections. Using activity proportions, determine the amount of overhead assigned to the Luxury product line. Data
> Refer to the information presented in M4–10. Suppose the Speedy boat requires 2,500 machine hours, 100 batches, and 300 inspections. Using the activity rates calculated in M4–10, determine the amount of overhead assign
> Lakeside Inc. manufactures four lines of remote-control boats and uses activity-based costing to calculate product cost. Compute the activity rates for each of the following activity cost pools:
> Catarina Company is considering a switch from its traditional costing system to an activity-based system. It has compiled the following information regarding its product lines: Explain why the overhead costs for each product could be so different between
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> Laser Resources produces and sells laser components and accessories. All materials are added at the beginning of the process. It has compiled the following information regarding its physical units for the month of November: Using the weighted-average met
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> Refer to M3-6 for information regarding Stone Company. Using the FIFO method, reconcile the number of physical units and calculate the number of equivalent units. Data from M3-6: Stone Company produces carrying cases for CDs. It has compiled the followi
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> Eagle Company had 1,150 units in work in process on January 1. During the month, Eagle completed 4,800 units and had 2,000 units in process on January 31. Determine how many units Eagle started during January.
> San Tan Company manufactures light bulbs. Once produced, the bulbs are packaged and sold to wholesalers for distribution to grocery stores and large retailers like Walmart. The following costs were incurred by San Tan Company during April: For the month
> Identify three manufacturing and one nonmanufacturing firms in which process costing is likely used. For each, explain the characteristics of that company that make it appropriate to use a process costing system.
> During its first month of operation, Portia Company purchased $90,000 of materials on account and requisitioned $64,000 of materials for use in production. The company recorded $30,000 of unpaid direct labor cost and applied $20,000 of manufacturing over
> Crayons Forever uses a three-department production process to produce its crayons. The Molding Department, Labeling Department and Packaging Department. During the month of May, the Molding Department completed and transferred 4,800,000 molded crayons, w
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> Determine whether each the following statements describes the weighted-average method (WA), the FIFO method (FIFO), or both methods (Both). Is simpler and more frequently used in the real world. Assumes the units in beginning inventory were completed bef
> The Cutting Department of Sonora’s Textiles has the following information about production and costs for the month of July: ∙ Beginning work in process, 9,200 units that are 100 percent complete as to materials and 35 percent complete as to conversion co
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> Refer to the information for Roland Corp. in M3-13. Prepare the journal entry to transfer the cost of completed units to Finished Goods Inventory. Data from M3-13: Roland Corp. had the following production information for August: Rolandâ€
> Roland Corp. had the following production information for August: Roland’s ending work in process is 100 percent complete for materials and 30 percent complete for conversion. Roland uses the weighted-average costing method and has comp
> Pearl Company has the following production information for October: 60,000 units transferred out and 20,000 units in ending work in process that are 100 percent complete for materials and 60 percent complete for conversion costs. Materials cost is $12 pe
> Refer to M3-10 for information regarding Cliff Company. Using the FIFO method, calculate Cliff’s cost per equivalent unit for materials and conversion during December. Data from M3-10: Cliff Company manufactures file cabinets. The foll
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> Match each of the terms with the appropriate definition. Not all definitions will be used. Terms: 1. Conversion Costs 2 Equivalent Unit 3. First-in, First-Out 4. Production Report 5. Weighted-Average Method Definitions: A. Provides information about the
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> Refer to M2–6 for Carey Company. 1. Compute over- or underapplied overhead. 2. Explain how you would handle the over- or underapplied overhead at the end of the accounting period. Which accounts will be affected? Will the accounts be in
> Refer to M2–6 for Carey Company. 1. Determine how much overhead to apply to production. 2. Explain whether applied overhead was based on actual values, estimated values, or both. Data from M2-6: Carey Company applies manufacturing over
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> Job 31 has a direct materials cost of $300 and a total manufacturing cost of $900. Overhead is applied to jobs at a rate of 200 percent of direct labor cost. Use the relationships among total manufacturing costs, conversion cost, and prime cost to determ
> Match each term with the best definition. Terms: 1. Actual Manufacturing Overhead 2. Applied Manufacturing Overhead 3. Cost of Goods Manufactured 4. Cost of Goods Sold 5. Direct Materials 6. Finished Goods 7. Indirect Materials 8. Raw Materials Inventory
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> For each of the following items, indicate whether it would appear on a materials requisition form (MRF), a direct labor time ticket (DLTT), and/or a job cost sheet (JCS). Note: An item may appear on more than one document. 1. Employee name. 2. Quantity o
> Refer to M2–15. 1. Prepare the journal entry to record Fairfield Company’s payroll costs. 2. The company applies manufacturing overhead to products at a predetermined rate of $50 per direct labor hour. Prepare the jour
> Refer to the information in M2–13. 1. Prepare the journal entry to record the purchase of raw materials. 2. Prepare the journal entry to record the issuance of raw materials to production. Data from M2-13: Fairfield Companyâ€
> Jenkins Company uses a job order cost system with overhead applied to jobs on the basis of direct labor hours. The direct labor rate is $20 per hour, and the predetermined overhead rate is $15 per direct labor hour. The company worked on three jobs durin
> For each of the following sustainability initiatives, indicate whether it will impact social (S), environmental (En), or economic (Ec) factors in the triple bottom line. Include more than one factor as appropriate. 1. Implementing a health and wellness p
> Fairfield Company’s raw materials inventory transactions for the most recent month are summarized here: 1. How much of the raw materials cost would be added to the Work in Process Inventory account during the period? 2. How much of the
> Determine missing amounts to complete the following table:
> Cooper Billiards manufactures pool tables. Complete the following table to indicate which account increases or decreases as a result of each action. Note: An action may affect more than one account.
> Refer to M2–9 for Hamilton Company. 1. Compute over- or underapplied overhead. 2. Which accounts will be affected by the over- or underapplied manufacturing overhead? Will the accounts be increased or decreased to adjust for the over- or underapplied man
> Indicate whether each of the following companies is likely to use job order (J) or process costing (P). 1. Golf ball manufacturer. 2. Landscaping business. 3. Tile manufacturer. 4. Auto repair shop. 5. Pet food manufacturer. 6. Light bulb manufacturer. 7
> For each of the following independent cases A through D, compute the missing values:
> For each of the following independent cases A through D, compute the missing values:
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> The following information is available for Rodriguez Industries: Manufacturing overhead is applied to production at 200 percent of direct labor cost. Determine the amount of direct materials used in production.
> The following information is available for Baker Industries: Compute the cost of goods sold.
> Refer to the information presented in E2–9. Required: 1. Prepare a Cost of Goods Manufactured report. 2. Prepare a Partial Income Statement if sales revenue was $1,250,000 and operating expenses were $210,000 for 2018. Data from E2-9: Manufacturing cost
> The following information is available for Walker Industries: Compute total current manufacturing costs.
> Refer to M2–17 for Fairfield Company. 1. Prepare the journal entry to close the Manufacturing Overhead account balance to Cost of Goods Sold. 2. Explain whether the entry in requirement 1 will increase or decrease Cost of Goods Sold and
> Refer to M2–16 for Fairfield Company. Its actual manufacturing costs for the most recent period are summarized here: 1. Post the preceding information to Fairfield Company’s Manufacturing Overhead T-account. 2. Compute
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> Refer to M1-14. Choose one of the companies you classified as a service company. For that company, identify two direct costs and two indirect costs. What is the cost object? Data from M1-14: Indicate whether each of the following businesses would most l
> Indicate whether each of the following businesses would most likely be classified as a service company (S), merchandising company (Mer), or manufacturing company (Man). 1. Merry Maids. 2. Dell Computer. 3. Brinks Security. 4. Kmart. 5. PetSmart 6. Ford M
> For each of the following independent cases A through D, compute the missing values in the table below.
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> Randy Inc. produces and sells tablets. The company incurred the following costs for the May: Determine each of the following: 1. Direct material. 2. Direct labor. 3. Manufacturing overhead. 4. Total manufacturing cost. 5. Total period cost. 6. Total vari
> Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs: Source documents revealed the following during March:
> Refer to M1-8. Assume that you have the following information about Top Shelf’s costs for the most recent month: Determine each of the following costs for Top Shelf. 1. Direct materials used. 2. Direct labor. 3. Manufacturing overhead.
> Top Shelf Company builds oak bookcases. Determine whether each of the following is a direct material (DM), direct labor (DL), manufacturing overhead (MOH), or a period (P) cost for Top Shelf. 1. Depreciation on factory equipment. 2. Depreciation on deli
> Jackson Lamps manufactures and sells table lamps. Determine whether each of the following is fixed (F) or variable (V). 1. Lamp shades. 2. Glue and screws. 3. CEO’s salary. 4. Assembler’s wages. 5. Rent for the factory. 6. Plant supervisor’s salary. 7. D
> The following is a short list of scenarios. Write a brief statement about whether you believe the scenario is an ethical dilemma and, if so, who will be harmed by the unethical behavior. 1. You are a tax accounting professional and a client informs you
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> Use the information in E13–3 to complete the following requirement. Required: Compute the times interest earned ratios for 2016 and 2015. In your opinion, does Computer Tycoon generate sufficient net income (before taxes and interest) t
> Use the information in E13–3 to complete the following requirements. Required: 1. Compute the gross profit percentage for each year (rounded to one decimal place). Assuming that the change from 2015 to 2016 is the beginning of a sustain
> According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2016. Let’s see whether these changes are reflected in the
> Use the information for Chevron Corporation in E13–1 to complete the following requirements. Required: 1. Compute the gross profit percentage for each year (rounded to one decimal place). Assuming that the change from 2014 to 2015 is th
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> Dollar General Corporation operates general merchandise stores that feature quality merchandise at low prices to meet the needs of middle-, low-, and fixed-income families in southern, eastern, and midwestern states. For the year ended January 29, 2016,
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