# ACCT2242 Saint Mary's University Managerial Accouting Problems Paper

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ACCT2242

Saint Marys University

## Description

Use MS WORD or EXCEL or both

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ACCT 2242 Summer#1 2019 Dr. G. Ansong ASSIGNMENT # 3 DUE June 06, 2019 Use MS WORD or EXCEL or both Question #1 (20 marks) The following information has been taken from Pulchritude Company for last year: Selling expenses \$ 140,000 RM inventory, Jan 1 RM inventory, Dec 31 Utilities, factory 60,000 \$ 36,000 DL, cost 150,000 Depreciation, factory 162,000 Purchases of RM 750,000 Sales Insurance, factory Supplies, factory \$2,500,000 \$40,000 15,000 Administrative expenses 270,000 Indirect labour 300,000 Maintenance, factory 87,000 WIP Inventory, Jan 1 \$180,000 WIP Inventory, Dec 31 FG Inventory, Jan 1 FG Inventory, Dec 31 a. 90,000 100,000 \$260,000 210,000 Calculate CGM (9 marks) and CGS (3 marks) b. Assuming production of FG and semi-FG amounted to 412,500 completed units for the past year, calculate the cost components of the ending FG inventory of 55,176 units. (Hint: The categories of costs in the ending inventory are the same as the total manufacturing costs, only the amounts are different) (8 marks) Question # 2 (20 marks) INSOUCIANCE Company has two departments, Milling and Assembly. The company uses a joborder cost system and computes a predetermined overhead rate in each department. The Milling Department bases its rate on machine-hours, and the Assembly department bases its rate on DL cost. At the beginning of the year, the company made the following estimates: Department Milling DL hours Machine-hours 8,000 75,000 60,000 MOH cost DL cost Assembly 5,000 \$510,000 \$72,000 \$800,000 \$640,000 Required: a. Compute the predetermined rate for each department. (4 marks) b. Assume that the MOH rates you computed in (a) above are in effect. The Job cost sheet for Job 600, which was started and completed during the year, showed the following: (9 marks) Department Milling Assembly DL hours 5 20 Machine-hours 90 4 Materials requisitioned \$800 \$370 DL cost \$45 \$160 Compute the total overhead (MOH) cost applied to Job 600. c. Would you expect substantially different amount different amounts of MOH cost to be charged to some jobs if the company used a plant-wide MOH rate based on DL cost instead of using departmental rates? Explain. (No computations are necessary). (3 marks) Question #3 (40 marks) a. E8-24A (20 marks) b. E8-26A (20 marks)
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Find the solution sheet attached herewith.. Question 1 - part b is not completed in this, remaining all is done..

Selling expenses
RM inventory, Jan 1
RM inventory, Dec 31

\$140,000
90,000
60,000

Utilities, factory
DL, cost
Depreciation, factory
Purchases of RM
Sales

\$36,000
150,000
162,000
750,000
\$2,500,000

Insurance, factory
Supplies, factory
Indirect labour
Maintenance, factory

40,000
15,000
270,000
300,000
87,000

WIP Inventory, Jan 1
WIP Inventory, Dec 31

\$180,000
100,000

FG Inventory, Jan 1
FG Inventory, Dec 31

\$260,000
210,000

a)

Raw Material Inventory, beginning
Raw Material avialble for use
Less: Raw Material Inventory, ending
Raw Material Used

90,000
750,000
840,000
60,000
780,000

Manufacturing OH
Utilities Factory
Depreciation Factory
Insurance Factory
Supplies, Factory
Indirect Labor
Maintenance Factory
Total MOH

36,...

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