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  • Oct 7, 2014, 05:32 PM
    ROXY08
    Cost of goods manufactured and Job costing
    I am so lost and my teacher is of no use. I am wondering if someone would be able to guid e me through, or if you have a similar example email it to me to follow. It would be so appreciated.
    Cost of goods manufactured
    Original Data
    3 departments Cutting Assembly Finishing

    Material used 30,000ft 0 10,000 gallons
    material cost $2.00 per foot 0 $.20 per gallon
    Labor incurred 300 hrs 600 hrs 1,200 hours
    Labor cost $8.00/hour $10.00 per hour $5.00 per hour
    Machine Hours 150m hrs 100 m hours 0
    Overhead:
    Base Machine Hrs Labor Cost Labor Hours
    Budgeted 10,000 mach hrs $6,000 labor cost 1,000 labor cost
    Budgeted Overhead $20,000 $12,000 $6,000

    Profit Margin: 30% of cost
    Required: Total cost by department
    total cost by element
    total cost by job

    Test Data

    3 departments Cutting Assembly Finishing

    Material used 40,000ft 0 12,000 gallons
    material cost $1.40 per foot 0 $.15 per gallon
    Labor incurred 500 hrs 800 hrs 1,500 hours
    Labor cost $9.00/hour $12.00 per hour $6.00 per hour
    Machine Hours 2000m hrs 150 m hours 0
    Overhead:
    Base Machine Hrs Labor Cost Labor Hours
    Budgeted 20,000 mach hrs $10,000 labor cost 2,000 labor cost
    Budgeted Overhead $42,000 $30,000 $12,000

    Profit Margin: 35% of cost
    Required: Total cost by department
    total cost by element
    total cost by job

    JOB COSTING
    Cutting Assembly Finishing Total
    Material $60,000 0 $2,000 $62,000
    Direct Labor 2,400 $6,000 $6,000 14,400
    Factory Overhead 300 12,000 7,200 19,500

    Total cost $62,700 $18,000 $15,200 $95,900
    Profit Margin (30%) 28,770
    Selling Price $124,670

    Cutting $20,000/10,000 = $2 per machine hour *150 machine hours =$300
    Assembly $12,000/6,000 = 200% of labor cost*$6,000 =$12,000
    Finishing $6,000/1,000 =$6 per labor hour * 1,200 labor hours = $7,200

    TEST DATA

    Cutting Assembly Finishing Total
    Material $56,000 0 $1,800 $57,800
    Direct Labor 4,500 $9,600 $9,000 23,100
    Factory Overhead 420 28,800 9,000 38,220

    Total cost $60,920 $38,400 $19,800 $119,120
    Profit Margin (30%) 41,692
    Selling Price $160,812

    Cutting $42,000/10,000 = $2.10 per machine hour *200 machine hours =$420
    Assembly $30,000/10,000 = 300% of labor cost*$9,600 =$28,800
    Finishing $12,000/2,000 =$6 per labor hour * 1,500 labor hours = $9,000

    Prepare an Excel using formulas in all calculations. Schedule/statement is to be in one worksheet and data on another worksheet. Use IF statement to display Original or the Test Data in schedule/statement.

    I am so lost and in need of serous help. If anyone is able to help it will mean the world to me. It will also be greatly appreciated. As this is the only help I am able to get. As all tutoring hours are while I am at work. Thank you for your time and help.
    If you have an example of what I need to do that would be great to.
    Make it a super night! I believe the second part my be the solutions, if you find they are how would I put it in a spreadsheet and do the IF function. THANK YOU
  • Oct 8, 2014, 06:33 AM
    paraclete
    We cannot do your work for you. This is a large problem and surely your text has worked examples

    If you have problems constructing a spreadsheet you need to have tutoring to understand the functionality The question is really testing your ability to construct a spreadsheet

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