Computations using a job order system
General Corporation employs a job order cost system. On May 1 the following balances were extracted from the general ledger;

Work in process $ 35,200
Finished goods 86,900
Cost of goods sold 128,700

Work in Process consisted of two jobs, no. 101 ($20,400) and no. 103 ($14,800). During May, direct materials requisitioned from the storeroom amounted to $96,500, and direct labor incurred totaled $114,500. These figures are subdivided as follows:


Direct Materials Direct Labor
Amount Job No. Amount
$5,000 101 $7,800
19,500 103 20,800
36,200 115 42,000
35,800 116 18,000
$96,500 Other 25,900
$114,500


Job no. 115 was the only job in process at the end of the month. Job no. 101 and three "other" jobs were sold during May at a profit of 20% of cost. The "other" jobs contained material and labor charges of $21,000 and $17,400, respectively.

General applies overhead daily at the rate of 150% of direct labor cost as labor summaries are posted to job orders. The firm's fiscal year ends on May 31.

Instructions:
a. Compute the total overhead applied to production during May.
b. Compute the cost of the ending work in process inventory.
c. Compute the cost of jobs completed during May.
d. Compute the cost of goods sold for the year ended May 31

High-low method
The following cost data pertain to 19X6 operations of Heritage Products:
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Shipping costs $58,200 $58,620 $60,125 $59,400
Orders shipped 120 140 175 150

The company uses the high-low method to analyze costs.
a. Determine the variable cost per order shipped.
b. Determine the fixed shipping costs per quarter.
c. If present cost behavior patterns continue, determine total shipping costs for 19X7 if activity amounts to 570 orders.

Direct and absorption costing
The information that follows pertains to Consumer Products for the year ended December 31, 19X6.
Inventory, 1/1/X6 24,000 units
Units manufactured 80,000
Units sold 82,000
Inventory, 12/31/X6 ? Units
Manufacturing costs:
Direct materials $3 per unit
Direct labor $5 per unit
Variable factory overhead $9 per unit
Fixed factory overhead $280,000
Selling & administrative expenses:
Variable $2 per unit
Fixed $136,000

The unit selling price is $26. Assume that costs have been stable in recent years.

Instructions:
a. Compute the number of units in the ending inventory.
b. Calculate the cost of a unit assuming use of:
1. Direct costing.
2. Absorption costing.
c. Prepare an income statement for the year ended December 31, 19X6, by using direct costing.
d. Prepare an income statement for the year ended December 31, 19X6, by using absorption costing

Kitty, you have asked three separate questions for accounting. We do not answer these questions when they are obviously homework assignments. If you work through these three questions and show us that you are willing to answer them properly yourself, we will tell you if they are correct or not.

Quote:

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Originally Posted by tickle

kitty, you have asked three separate questions for accounting. We do not answer these questions when they are obviously homework assignments. If you work through these three questions and show us that you are willing to answer them properly yourself, we will tell you if they are correct or not.

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Thank you for your reply, I was not looking for the answers I just wanted to know how to do the problems, because I am totally confused. Thanks anyway.