Costs and BalancesAt the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he's collected, but he was unable to figure out some ofthe amounts. Review the following data and fill in the mising amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use Taccounts to map the flow ofthe amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for detemining the cost of materials used,total manufacturing cost incured, and cost of goods manufactured.Data for FebruaryDecrease in materials inventory$3,300Materials inventory on Feb. 2850% of materials inventory on Jan. 31Direct materials purchased$12,600Direct materials used3 times the direct labor incurredTotal manufacturing costs incurred in period$29,400Total manufacturing costs incurred in period70% of Cost of Goods ManufacturedTotal manufacturing costs incurred in period$7,000 less than Cost of Goods SoldAccount BalancesAccountJan. 31Feb. 28Costs IncurredMaterials InventoryDirect Materials UsedWork in Process Inventory27,000Direct Labor IncurredFinished Goods InventoryFactory Overhead Incurred18,000Cost of Goods Sold

Cost accounting: A branch of accounting that is associated with the calculation of the total cost…

Account Balances Account Jan. 31 Feb. 28 Costs Incurred Materials Inventory Direct Materials Used Work in Procesa Inventory Finished Goods Inventery. 27,000 Direct Labor Incurred 18,000 Factory Overhead Incurred Cost of Goods Sold

Account Balances Account Jan. 31 Feb. 28 Costs Incurred Materials Inventory Direct Materials Used Work in Procesa Inventory Finished Goods Inventery. 27,000 Direct Labor Incurred 18,000 Factory Overhead Incurred Cost of Goods Sold

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter1: Introduction To Cost Accounting

Section: Chapter Questions

Problem 5P: The adjusted trial balance for Appleton Appliances, Ltd. on June 30, the end of its first month of...

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Costs and Balances At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he’s collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured. Data for February Decrease in materials inventory $3,300 Materials inventory on Feb. 28 50% of materials inventory on Jan. 31 Direct materials purchased $12,000 Direct materials used 3 times the direct labor incurred Total manufacturing costs incurred in period $29,400 Total manufacturing costs incurred in period 70% of Cost of Goods Manufactured Total manufacturing…
Costs and Balances At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he's collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured. Data for February Decrease in materials inventory $3,000 Materials inventory on Feb. 28 50% of materials inventory on Jan. 31 Direct materials purchased $12,300 Direct materials used 3 times the direct labor incurred Total manufacturing costs incurred in period $28,000 Total manufacturing costs incurred in period 70% of Cost of Goods Manufactured Total manufacturing costs incurred in…
Costs and Balances At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he’s collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured. Data for February Decrease in materials inventory $3,600 Materials inventory on Feb. 28 50% of materials inventory on Jan. 31 Direct materials purchased $12,600 Direct materials used 3 times the direct labor incurred Total manufacturing costs incurred in period $28,000 Total manufacturing costs incurred in period 70% of Cost of Goods Manufactured Total manufacturing…
Costs and Balances At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he’s collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured. Data for February Decrease in materials inventory $3,300 Materials inventory on Feb. 28 50% of materials inventory on Jan. 31 Direct materials purchased $12,000 Direct materials used 3 times the direct labor incurred Total manufacturing costs incurred in period $27,300 Total manufacturing costs incurred in period 70% of Cost of Goods Manufactured Total manufacturing…
Costs and Balances At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he's collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured. Data for February Decrease in materials inventory Materials inventory on Feb. 28 Direct materials purchased Direct materials used Total manufacturing costs incurred in period Total manufacturing costs incurred in period Total manufacturing costs incurred in period Account Materials Inventory Work in Process Inventory Finished Goods Inventory Account Balances Jan. 31 $2,700 50% of…
Costs and Balances At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he's collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured. Data for February Decrease in materials inventory Materials inventory on Feb. 28 Direct materials purchased Direct materials used Total manufacturing costs incurred in period Total manufacturing costs incurred in period Total manufacturing costs incurred in period $3,300 50% of materials inventory on Jan. 31 $11,700 3 times the direct labor incurred $28,000 70% of Cost of Goods…
The chief executive of Dabid's salon is interested in accumulating some information on the overhead costs incurred by the Company. You have been asked to analyze the following six months' worth of data: Month Overhead Cost No. of Appointments 867 P 48,128 April May June 45,200 624 47,120 689 July August September 50,800 974 47,460 49,920 730 901 Using the least squares regression method, give an estimate of the fixed cost for each month P34,371.72 P35,631.77 P36,804.09 O P37,545.70
The following table provides monthly revenue values for Tedstar, Inc., a company that sells valves to large industrial firms. The monthly revenue data have been graphed using a line chart in the following figure. a. What are the problems with the layout and display of this line chart? b. Create a new line chart for the monthly revenue data at Tedstar, Inc. Format the chart to make it easy to read and interpret.
Note that Barbaras Bistro in Figure 1-2 prepares monthly performance reports. Do you think that it would be a good idea for Barbara to switch to just an annual performance report in an effort to reduce its accounting costs?
Customers as a Cost Object Morrisom National Bank has requested an analysis of checking account profitability by customer type. Customers are categorized according to the size of their account: low balances, medium balances, and high balances. The activities associated with the three different customer categories and their associated annual costs are as follows: Additional data concerning the usage of the activities by the various customers are also provided: Required: (Note: Round answers to two decimal places.) 1. Calculate a cost per account per year by dividing the total cost of processing and maintaining checking accounts by the total number of accounts. What is the average fee per month that the bank should charge to cover the costs incurred because of checking accounts? 2. Calculate a cost per account by customer category by using activity rates. 3. Currently, the bank offers free checking to all of its customers. The interest revenues average 90 per account; however, the interest revenues earned per account by category are 80, 100, and 165 for the low-, medium-, and high-balance accounts, respectively. Calculate the average profit per account (average revenue minus average cost from Requirement 1). Then calculate the profit per account by using the revenue per customer type and the unit cost per customer type calculated in Requirement 2. 4. CONCEPTUAL CONNECTION After the analysis in Requirement 3, a vice president recommended eliminating the free checking feature for low-balance customers. The bank president expressed reluctance to do so, arguing that the low-balance customers more than made up for the loss through cross-sales. He presented a survey that showed that 50% of the customers would switch banks if a checking fee were imposed. Explain how you could verify the presidents argument by using ABC.
Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. Round your answers to the nearest dollar. Sorensen Manufacturing Company Income Statement For the Month Ended January 31 b. Determine the inventory balances at the end of the first mon operations. Round your answers to the nearest dollar. Sorensen Manufacturing Company Inventory Balances For the Month Ended January 31 Inventory balances on January 31 : Materials Work in process Finished goods $ $ $ The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digita video monitors: a. Purchased $236, 000 of materials. b. Used $169, 920 of direct materials in production. c. Incurred $424, 800 of direct labor wages. d. Incurred $169,900 of factory overhead. e. Transferred $ 717,400 of work in process to finished goods. f. Sold goods for $1,132,800. g. Sold goods with a cost of $637,200. h.…
A professional services firm has been analysing the cost of collecting management information by using its employees' hourly charge-out rates to estimate the costs of different activities. The firm has calculated that the following costs have been incurred during the last month: Staff completing timesheets Managers analysing costs incurred on assignments compared to fees agreed with clients Credit control team updating the receivables ledgers to write off bad debts 5,000 3,000 500 Using the information provided, what are the firm's direct data capture costs for the last month? - $500 $5,000 $8,000 $8,500