Homework Sourse1 Sydneys Barbecue reported the following information Sydney
1. Sydney\'s Barbecue reported the following information:
Sydney\'s Barbecue
Period Ending December 31, 20XX
$5,400,000
$54,000
$ 0
Note: 45,600 units sold during year at $300 per unit
What is the amount of ending finished goods inventory for the period ending December 31, 20XX?
2.Net income reported under absorption costing will exceed net income reported under variable costing for a given period if
sales exceed production for that period.
3.
A company manufactures wallets. Last month\'s costs were as listed below:
$246,000
$175,000
$73,000
What were the conversion costs for the month?
$246,000
4. Which of the following are classified as manufacturing overhead?
All materials
5.Baxter Company produces Frisbees using a three-step sequential process that includes molding, coloring, and finishing. At what stage would the sets be allocated Manufacturing Overhead?
All of the above
6.Which method are managers using when they use their judgment to classify costs as variable, fixed, or mixed?
High-low method
7.Which of the following is not a way in which management can use job cost information?
Using the cost information in determining the bid price for custom orders
8.A factory janitor\'s wages would be classified as _________ when determining the cost of a manufactured product.
none of the above
9.
Tall Timbers reports the following data for its first year of operation:
Work in process inventory, beginning
$ 0
Work in process inventory, ending
$50,200
Manufacturing overhead
$25,400
Direct materials used
$7,700
Direct Labor
$60,000
Finished goods inventory, beginning
$ 0
Finished goods inventory, ending
$20,000
Cost of goods manufactured
$42,900
What is the cost of goods sold?
$42,900
10.
A deodorant manufacturer offers the following information:
0 units
33,600 units
11,200 units
22,400 units
$276,480
$585,000
$328,920
The units in ending WIP Inventory were 60% complete for materials and 40% complete for conversion costs.
On December 31, what are the total equivalent units for direct materials?
24,640
11. How is the cost of indirect materials used in the factory recorded?
Credit to Work-in-Process Inventory account
12. XYZ uses job costing. Actual manufacturing overhead for the period is $20,300 while allocated manufacturing overhead is $18,200. What entry will close the manufacturing overhead balance?
Debit the Manufacturing Overhead account and credit the Cost of Goods Sold account for $2,100.
| Manufacturing costs | $5,400,000 |
| Units manufactured | $54,000 |
| Beginning inventory in Units | $ 0 |
Solution
1.
Manufacturing cost per unit = Total cost / Units
= $5,400,000 / 54,000
= $100
Units of finished goods = Manufactured – Sold
= 54,000 – 45,600
= 8,400
Amount of finished goods = Units of finished goods × Manufacturing cost per unit
= 8,400 × $100
= $840,000 (Answer)
2.
Answer: If production exceeds sales
The absorption would be higher, since it includes both fixed cost and variable cost.
3.
Conversion cost = Labor + Overhead
= 175,000 + 73,000
= $248,000 (Answer)
4.
Answer: 1st option
All sorts of indirect costs, like material, labor, etc are overhead costs. These are indirect in nature because of non-attributed to production units.
