ACCT221 – Principles of Accounting II Team Assignment

ACCT221 – Principles of Accounting II Team Assignment

ACCT221 – Principles of Accounting II Team Assignment

Subject: Business / Accounting
Question
For all Short Exercises, assume the weighted-average method is to be used unless you are told
otherwise. S20-1 Comparing job order costing versus process costing
Identify each costing system characteristic as job order costing or process costing.
a. One Work-in-Process Inventory account
b. Production cost reports
c. Cost accumulated by process
d. Job cost sheets
e. Manufactures homogenous products through a series of uniform steps
f. Multiple Work-in-Process Inventory accounts g. Costs transferred at end of period
h. Manufactures batches of unique products or provides specialized services
a.
b.
c.
d.
e.
f.
g.
h. S20-3 Calculating conversion costs
Hamlin Orange manufactures orange juice. Last month’s total manufacturing costs for the
Jacksonville operation included: What was the conversion cost for Hamlin Orange’s Jacksonville operation last month?
Conversion Costs = Direct Labor + Manufacturing Overhead = $32,000 + $155,000 = $187,000 S20-5 Calculating conversion costs and unit cost
Russia Spring produces premium bottled water. Russia Spring purchases artesian water, stores the
water in large tanks, and then runs the water through two processes: filtration and bottling.
During February, the filtration process incurred the following costs in processing 150,000
liters: Russia Spring had no beginning Work-in-Process Inventory in the Filtration Department in
February.
Requirements
1. Compute the February conversion costs in the Filtration Department.
2. The Filtration Department completely processed 150,000 liters in February. What was the
filtration cost per liter? Requirement 1
Conversion Costs = + = + = Requirement 2
Total Costs = + = + = Cost per liter = / = / = S20-7 Computing costs transferred
The Finishing Department of Carter and Nelson, Inc., the last department in the manufacturing
process, incurred production costs of $310,000 during the month of June. If the June 1 balance in
Work-in-Process—Finishing is $0 and the June 30 balance is $70,000, what amount was
transferred to Finished Goods Inventory?
Work-in-Process Inventory, June 1 Transferred to Finished Goods Inventory S20-8 Computing EUP
The Mixing Department of Fresh Foods had 50,000 units to account for in October. Of the 50,000
units, 40,000 units were completed and transferred to the next department, and 10,000 units were
20% complete. All of the materials are added at the beginning of the process. Conversion costs
are added evenly throughout the mixing process.
Compute the total equivalent units of production for direct materials and conversion costs for
October.
Completed units:
In process units:
Total EUP for direct materials: Completed units:
In process units:
Total EUP for conversion costs: S20A-13 Calculating conversion costs and unit cost—FIFO method
Spring Rain produces premium bottled water. Spring Rain purchases artesian water, stores the
water in large tanks, and then runs the water through two processes: filtration and bottling.
During February, the filtration process incurred the following costs in processing 100,000 liters: Spring Rain had no beginning Work-in-Process Inventory in the Filtration Department in
February.
Requirements
1. Use the FIFO method to compute the February conversion costs in the Filtration
Department.
2. The Filtration Department completely processed 100,000 liters in February. Use the FIFO
method to determine the filtration cost per liter.
Requirement 1
Conversion Costs = + = + = Requirement 2 Beginning WIP units: = Started and completed units: = In process units: = Total EUP for direct materials: = Beginning WIP units: = Started and completed units: = In process units: = Total EUP for conversion costs: Cost per EUP for direct materials = = Total direct materials costs
Equivalent units of production for direct materials = = Cost per EUP for conversion costs = Total conversion costs
Equivalent units of production for conversion costs = = Costs per liter = + = + = Note: Short Exercise S20A-13 must be completed before attempting Short Exercise S20A-14.
S20A-14 Computing EUP—FIFO Method
Refer to Short Exercise S20A-13. At Spring Rain, water is added at the beginning of the filtration
process. Conversion costs are added evenly throughout the process. Now assume that in February,
80,000 liters were completed and transferred out of the Filtration Department into the Bottling
Department. The 20,000 liters remaining in Filtration’s ending Work-in-Process Inventory were
70% of the way through the filtration process. Recall that Spring Rain has no beginning
inventories.
Compute the equivalent units of production for direct materials and conversion costs for the
Filtration Department using the FIFO method.
Beginning WIP units: = Started and completed units: = In process units: = Total EUP for direct materials: = Beginning WIP units: = Started and completed units: = In process units: = Total EUP for conversion costs: = S21-7 Calculating required sales in units, contribution margin ratio given
Summer Company sells a product with a contribution margin ratio of 60%. Fixed costs
are $650 per month. What amount of sales (in dollars) must Summer Company have to
earn an operating income of $7,000? If each unit sells for $30, how many units must be
sold to achieve the desired operating income? Required sales in dollars =
= Required sales in units = =
= = OR
Required sales in units =
= = S21-8 Computing contribution margin, units to achieve target profit, and breakeven
point
Compute the missing amounts for the following table. A
Number of units
Sales price per unit
Variable costs per unit
Total fixed costs
Target profit
Calculate:
Contribution margin per unit
Contribution margin ratio
Required units to achieve target profit
Required units to breakeven
Required sales dollars to breakeven B C Use the following information to complete Short Exercises S21-15 and S21-16.
SoakNFun Swim Park sells individual and family tickets. With a ticket, each person
receives a meal, three beverages, and unlimited use of the swimming pools. SoakNFun
has the following ticket prices and variable costs for 2016: SoakNFun expects to sell one individual ticket for every four family tickets. SoakNFun’s
total fixed costs are $76,000. S21-15 Calculating breakeven point for two products
Using the SoakNFun Swim Park information presented, do the following tasks.
Requirements
1. Compute the weighted-average contribution margin per ticket.
2. Calculate the total number of tickets SoakNFun must sell to break even.
3. Calculate the number of individual tickets and the number of family tickets the
company must sell to break even.
Requirement 1
Individual
Sales price per unit
Variable cost per unit
Contribution margin per unit
Sales mix in units
Contribution margin
Weighted-average contribution margin per unit
($95 / 5 units) Requirement 2
Required sales in units = Family Total = = Requirement 3
Required sales of individual tickets
Required sales of family tickets =
= =
= S21-16 Calculating breakeven point for two products
For 2017, SoakNFun expects a sales mix of four individual tickets for every one family
ticket.
Requirements
1. Compute the new weighted-average contribution margin per ticket.
2. Calculate the total number of tickets SoakNFun must sell to break even.
3. Calculate the number of individual tickets and the number of family tickets the
company must sell to break even.
Requirement 1
Individua
l Family Total Sales price per unit
Variable cost per unit
Contribution margin per unit
Sales mix in units
Contribution margin
Weighted-average contribution margin per unit
($80 / 5 units) Requirement 2
Required sales in units =
= = Requirement 3 Required sales of individual tickets
Required sales of family tickets =
= =
= Use the following information for Short Exercises S21A-20 and S21A-21.
Matthew Company had the following costs: S21A-20 Computing unit product cost, absorption costing
Learning Objective 6
Appendix 21A Calculate the unit product cost using absorption costing. Round your answer to the
nearest cent. SOLUTION Absorption
Costing
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Total product cost per unit ($6,200 / 310 units) S21A-21 Computing unit product cost, variable costing
Calculate the unit product cost using variable costing. Round your answer to the nearest
cent.
Variable
Costing Total product cost per unit S21A-22 Computing absorption cost per unit
Learning Objective 7
Appendix 21A Abrey, Inc. has the following cost data for Product X: Calculate the unit product cost using absorption costing when production is 250 units,
500 units, and 2,500 units. Units Total product cost per unit Units Units

https://applewriters.com/place-order/
We can do it for you