# Get Solved ACCT 346 Week 2 Homework Assignment (Question 1, 2, 3 and 4) Summer 2020

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## Get Solved ACCT 346 Week 2 Homework Assignment Question 1 2 3 and 4 Summer 2020

##### ACCT 346 Week 2 Homework Assignment: Question 1

Lounge Lizard Furniture started and finished Job 310 in December. The company’s records … that the … direct materials were … for Job 310:

Labor time records show the … employees (direct labor) worked on Job 310:

2(Click the icon to view the labor time records for Job 310.)

Lounge Lizard allocates manufacturing overhead at a rate of \$12 per direct labor hour. Read the requirements3.

Job costing is … by companies that produce unique, custom-ordered products, or relatively small batches of different products. Each unique product or batch of units is … a separate “job”. Different jobs can vary considerably in direct materials, direct labor, and manufacturing overhead costs, so job costing tracks these costs separately for each individual job. Once the job has been completed, the three manufacturing costs … on the job cost record are summed to find the total job cost.

Requirement 1. Compute the total amount of direct materials, direct labor, and manufacturing overhead that should … on Job 310’s job cost record.

A job cost record documents the direct materials, direct labor, and manufacturing overhead costs assigned to each individual job. Begin the job cost record by calculating the amount of each direct material … for the job………..

Continue with the job cost record by calculating the amount for each employee by multiplying the number of hours each employee worked on Job 310 by their respective hourly rate. Then, just as with the direct materials, the totals can … added together to obtain a total labor amount………….

Before we can complete the job cost record, we must determine the manufacturing overhead to be … to this job. We know Lounge Lizard allocates manufacturing overhead at a rate of \$12 per direct labor hour. The direct labor hours are the sum of the total hours worked on Job 310 by Alison Ibbitson, (11 hours) and Mark Frizzell, (14 hours). Compute the manufacturing overhead now……….

Requirement 2. Job 310 consists of six recliners. If each recliner sells for \$650, what is the gross profit per recliner?

In order to calculate the gross profit per recliner, the first step is to calculate the cost per recliner. Now calculate the unit cost of each recliner. The total job cost that we calculated above has been entered for you. (Round your answer to the nearest dollar.)

In order to calculate the gross profit per recliner, the first step is to calculate the cost per recliner. Now calculate the unit cost of each recliner. The total job cost that we calculated above has been entered for you. (Round your answer to the nearest dollar.)

3: Requirements

1. Compute the total amount of direct materials, direct labor, and manufacturing overhead that should … on Job 310’s job cost record.
2. Job 310 consists of six recliners. If each recliner sells for \$650, what is the gross profit per recliner?

##### ACCT 346 Week 2 Homework Assignment: Question 2

The … transactions were incurred by Rawley Fabricators during January, the first month of its fiscal year. 1(Click the icon to view the transactions.)

Requirements

1. Record the proper journal entry for each transaction.
2. By the end of January, was manufacturing overhead overallocated or under allocated? By how much?

Requirement 1. Record the proper journal entry for each transaction.

In a manufacturing environment, managers want to know the costs incurred for each job. There are several accounting steps that enable managers to obtain this information. First, the manufacturing costs for direct materials and direct labor incurred for the jobs are accumulated. Then the appropriate amounts of these costs are assigned to individual jobs. Finally, manufacturing overhead is … to the jobs. The manufacturing overhead is then measured against the actual overhead costs for the period to determine if the overhead has been overallocated or under allocated.

1. \$190,000 of materials was … on the account.

The raw materials … by a manufacturer are “stored” in the Raw Materials Inventory account when they are purchased. These materials cannot … to certain jobs until the materials are … on the jobs. Rawley Fabricators has purchased \$190,000 of materials on account. Therefore, this entry will increase both the assets and liabilities of the business. Record the entry. (Record debits first, then credits. Exclude explanations from any journal entries.)……….

2. \$166,000 of materials was … in production; of this amount, \$158,000 were … on specific jobs

When certain materials are needed on the production floor, the production team completes a materials requisition to request the transfer of the needed materials. Remember that direct material costs are recorded in one account and indirect material costs2 are recorded in a different account. Record the entry.

3. Manufacturing labor and salaries for the month totaled \$255,000. A total of \$170,000 of manufacturing labor and salaries was traced to specific jobs, and the remainder was indirect labor … in the factory.

A manufacturing company can have two types of labor costs, direct labor, and indirect labor4. Remember the direct and indirect labor5 will … recorded into separate accounts. The entry will also increase the liabilities of the business because the labor is … rather than paid. Record the entry………….

Requirement 2.  Was manufacturing overhead overallocated or under allocated? By how much?

At the end of the period, the Manufacturing Overhead account is analyzed. Remember that actual overhead costs are debited to the Manufacturing Overhead account while … overhead costs are credited to the account. Post the entries to the T-account and compute the preliminary balance in the account. (Post the entries in the order the journal entries were prepared using the next available line in the T-account.)

1. \$190,000 of materials was … on the account.
2. \$166,000 of materials was … in production; of this amount, \$158,000 was … on specific jobs.
3. Manufacturing labor and salaries for the month totaled \$255,000. A total of \$170,000 of manufacturing labor and salaries was traced to specific jobs, and the … was indirect labor … in the factory.
4. The company recorded \$16,000 of depreciation on the plant and plant equipment. The company also received a plant utility bill for \$14,000 which will … paid at a later date.
5. \$107,000 of manufacturing overhead was … to specific jobs.
6. The company received a bill for CAD design services for \$6,000.

2: Definition……………

3: Definition……………

4: Definition……………

5: Definition……………

##### ACCT 346 Week 2 Homework Assignment: Question 3

Frugal Tire manufactures tires for all-terrain vehicles. Frugal uses job costing and has a perpetual inventory system. On April 22, Frugal received an order for 180 TX tires from ATV Corporation at a price of \$50    each. The job, … number 298, was … for May 10. After purchasing the materials, Frugal began production on April 30 and incurred the … direct labor and direct materials costs in completing the order:

1(Click the icon to view the costs.)

Frugal allocates manufacturing overhead to jobs on the basis of the relation between expected overhead costs (\$418,000) and expected direct labor hours (22,000). Job 298 was completed on May 3 and shipped to ATV on May 5.

The job cost record accumulates the costs of each job’s direct materials, direct labor, and manufacturing overhead. A company starts the job cost record when work begins on the job.

You will notice from the information given in the problem that we know the start date, finish date, and date the product was sold. If a job has been started but not yet finished it is …. works in process. When a job has been started and finished it is .. finished goods. If that job has been sold by a specified date then the cost of the job is transferred to Cost of Goods Sold.

Requirement 1. Prepare a job cost record for Job 298.

Begin with the first portion of the job cost record, direct materials. Information on direct materials is … from the materials requisition. (List the dates in chronological order.)…….

Now complete the second portion of the job cost record, direct labor. The direct labor information comes from the labor time records. (Enter the labor time records in the correct row according to date………

Now complete the last portion of the job cost record, manufacturing overhead … and overall cost summary. Remember manufacturing overhead will … at the rate of \$19 per direct labor hour. By reviewing the labor time records, we know that there were a total of 42 direct labor hours on this job. The predetermined overhead rate, direct materials amount, and direct labor amount that we … previously have been entered for you………

Requirement 2. Calculate the total profit and the per-unit profit for Job 298

To determine the total profit we need to subtract the cost of the job from sales3. The cost of the job has been entered for you since it was … in the previous requirement. Let’s calculate the total profit for Job 298………..

Now calculate the per-unit profit for Job 298. The total cost … above is the cost of manufacturing 180 TX tires. Compute the unit cost of producing one tire by dividing the total profit by the number of tires. (Round your answer to two decimal places.)

2: Requirements

1. Prepare a job cost record for Job 298.
2. Calculate the total profit and the per-unit profit for Job 298.
3. Definition

##### ACCT 346 Week 2 Homework Assignment: Question 4

Several years after reengineering its production process, Zippy Corporation hired a new controller, Christine Erickson.

1(Click the icon to view additional information.)

For the upcoming year, Zippy’s budgeted ABC manufacturing overhead allocation rates are as follows:

2 (Click the icon to view the additional data.)

The number of parts is now a feasible allocation base because Zippy recently installed a plantwide computer system. Zippy produces two wheel models: Standard and Deluxe. Budgeted data for the upcoming year are as follows:

3(Click the icon to view the additional data.)

Zippy uses an activity-based costing system. Activity-based costing (ABC) focuses on activities. The costs of those activities become the building blocks for measuring the costs. In this situation, we are … information about each activity. We must use our understanding about the relationship between the cost allocation rates, and the quantity of allocation base to compute the … unit manufacturing costs for each product.

Requirement 1. Compute the total budgeted manufacturing overhead cost for the upcoming year.

Start by determining the budgeted quantity for each step of production. You will need the … data and the total units … in a year for these calculations. Materials handling and insertion of parts are two activities that are … on the number of parts. Let’s start by computing the total parts that Zippy uses in the year. To calculate the total parts we need to multiply the number of parts by the units produced.

Complete the table below……………..

The activity of machine setup is … on the number of setups for the year. We can compute the total setups per year by adding the number of setups for the standard and deluxe models together. Complete the table below………………..

The final activity we must compute is the total direct labor hours in the Finishing Department. We compute the total direct labor hours by multiplying the finishing department direct labor hours per wheel by the number of units produced. Complete the table below

Next we need to determine the activity cost for each step of production. Complete the table below. (Enter the rates to two decimal places.)……………

Finally, we need to determine the total budgeted indirect cost for each activity and the total cost for production. To determine the total budgeted indirect cost for each activity we must multiply the budgeted quantity of cost allocation base by the activity cost allocation rate for the activity. Complete the ………………

Requirement 2. Compute the manufacturing overhead cost per wheel of each model using ABC

The cost allocation rates that we previously … entered into the table for you. Next, we need to determine the quantity of cost allocation based… on the standard and deluxe wheels. Note that the setups are per 1,000 wheels for machine setups, so you will have to divide the units … produced by the number of setups per wheel. (Round the cost allocation base to three decimals.)…………..

Finally, we need to determine the… activity cost per wheel for each activity and a grand total for each wheel (standard and deluxe). To determine the … activity cost per wheel, we need to multiply the cost allocation rate by the quantity of cost allocation base … by standard/deluxe. Complete the … table. (Round your answers to the nearest cent.)…………

Requirement 3. Compute the company’s traditional plantwide overhead rate. Use this rate to determine the manufacturing overhead cost per wheel under the traditional system.

Complete the formula to determine the plantwide overhead rate. Recall that in Requirement 1 we calculated the total budgeted manufacturing overhead cost. The budgeted total direct labor hours are the sum of the direct labor hours per wheel for the standard and deluxe models multiplied by the units produced, 1,000. Complete the formula below. (Round your answer to the nearest cent.)………..

She developed an ABC system very similar to the one … by Zippy’s chief rival. Part of the reason Erickson developed the ABC system was that Zippy’s profits had been declining even though the company had shifted its product mix toward the product that had appeared most profitable under the old system. Before adopting the new ABC system, the company had … a plantwide overhead rate based on direct labor hours that were developed years ago.

2: Data Table………

3: Data Table………

4: Requirements

1. Compute the total budgeted manufacturing overhead cost for the upcoming year.
2. Compute the manufacturing overhead cost per wheel of each model using ABC.

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