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ACC 206: Management Accounting Problems � Cost Flows, Overhead Application, and Cost-Volume-Profit Analysis

A case study exploring management accounting issues such as cost flows, overhead, and CVP analysis.

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    ACC 206: Management Accounting Problems – Cost Flows, Overhead Application, and Cost - Volume - Profit Analysis Chapter 4 and 5 Problems Please complete the following 7 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button. Chapter 4 Exercise 3 3. Cost flows and overhead application Cleveland Metals uses a job cost system and applies factory overhead to production at a predetermined rate of 180% of direct labor cost. Data pertaining to recent operations follow. • Job no. 636 was the only job in process on January 1 of the current y ear. The Work in Process account contained a $24,600 balance on this date. • Jobs no. 637, 638, and 639 were started during January. • Total direct material requisitions and direct labor incurred during January amounted to $89,200 and $114,500, respectiv ely. • The only job that remained in process on January 31 was job no. 638, with costs of $15,000 for direct materials and $20,000 for direct labor. a. Compute the total cost of the work in process inventory on January 31. total cost of WIP = 15000+2000 0+1.8*20000= 71000 b. Compute the cost of jobs completed during January, and present the proper journal entry to reflect job completion. total = 89200 + 2.8*114500 + 24600= 434,400 Completed = 434400 - 71000 = 363,400 Job Completion = $363,400 Chapter 4 Exercise 7 7. Overhead application: Working backward The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional information is presented for your review: Division A Division B Actual machine hours 22,500 17,200 a=g/d

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