Work shown

Georgia Pacific, a manufacturer, incurs the following costs.

1. Indicate each cost as either a product or a period cost. If a product cost, identify it as a prime and/or conversion cost. (Select “X” if a category applies and “NA” if it does not apply.)

Office supplies used
Bad debts expense
Small tools used
Factory utilities
Advertising
Amortization of patents on factory machine
Payroll taxes for production supervisor
Accident insurance on factory workers
Depreciation—Factory building
State and federal income taxes
Wages to assembly workers
Direct materials used

2. Indicate each product cost as either a direct cost or an indirect cost using the product as the cost object. (Select “None” if none of the categories and “both” if both the categories applied for the particular item.)

Cost
Office supplies used
Bad debts expense
Small tools used
Factory utilities
Advertising
Amortization of patents on factory machine
Payroll taxes for production supervisor
Accident insurance on factory workers
Depreciation—Factory building
State and federal income taxes
Wages to assembly workers
Direct materials used

Listed here are product costs for the production of soccer balls.

1. Identify each cost (a) as either fixed or variable and (b) as either direct or indirect by selecting the appropriate dropdown. (Select “None” if none of the categories applied for the particular item.)

(a) Fixed or Variable

Product Cost
Taxes on factory
Machinery depreciation
Coolants for machinery
Wages of assembly workers
Lace to hold leather together
Leather covers for soccer balls
Annual flat fee paid for office security

(b)
Direct or Indirect
Product Cost
Taxes on factory
Machinery depreciation
Coolants for machinery
Wages of assembly workers
Lace to hold leather together
Leather covers for soccer balls
Annual flat fee paid for office security

Select the descriptions below with their terms.

a. The expected selling price of a job minus its desired profit.
b. Production activities for a customized product.
c. A system that records manufacturing costs using a perpetual inventory system.
d. Production of products in response to customer orders.
e. Production of more than one unit of a custom product.
f. A system that records manufacturing costs using a periodic inventory system.

The titles of documents and accounts used in job order cost accounting are given in dropdown. The short descriptions of the purposes of the documents is also given. Match each short description with the document.

Short description
1. Communicates the need for materials to complete a job.
2. Shows only total time an employee works each day.
3. Shows amount approved for payment of an overhead or other cost.
4. Shows amount of time an employee works on a job.
5. Temporarily accumulates the cost of incurred overhead until the cost is assigned to specific jobs.
6. Temporarily accumulates incurred labor costs until they are assigned to specific jobs or to overhead.
7. Perpetual inventory record of raw materials received, used, and available for use.

As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs.

Job 102 Job 103 Job 104
Direct materials $ 44,000 $ 68,000 $ 62,000
Direct labor 11,000 29,200 41,000
Overhead 5,390 14,308 20,090
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Job 102 was started in production in May and the following costs were assigned to it in May: direct materials, $10,000; direct labor, $3,800; and overhead, $1,862. Jobs 103 and 104 are started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 102 and 103 are finished in June, and Job 104 is expected to be finished in July. No raw materials are used indirectly in June. Using this information, answer the following questions. (Assume this company’s predetermined overhead rate did not change across these months).

1. What is the cost of the raw materials requisitioned in June for each of the three jobs? (Omit the “$” sign in your response.)
2.
How much direct labor cost is incurred during June for each of the three jobs? (Omit the “$” sign in your response.)
3.
What predetermined overhead rate is used during June? (Omit the “%” sign in your response.)
4.
How much total cost is transferred to finished goods during June? (Omit the “$” sign in your response.)
During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 32,000 were in process in the production department at the beginning of April and 260,000 were started and completed in April. April’s beginning inventory units were 40% complete with respect to materials and 60% complete with respect to labor. At the end of April, 63,000 additional units were in process in the production department and were 70% complete with respect to materials and 50% complete with respect to labor.
1.
Compute the number of units transferred to finished goods.
2.
Compute the number of equivalent units with respect to both materials used and labor used in the production department for April using the weighted-average method.
For each of the following products and services, indicate whether it is most likely produced in a process operation or in a job order operation

Door hardware
Cut flower arrangements
House paints
Concrete swimming pools
Custom tailored dresses
Grand pianos
Table lamps
Beach towels
Bolts and nuts
Lawn chairs
Headphones
Designed patio

Indicate each item a through h below as a feature of either a job order or process operation.

Routine, repetitive procedures
Custom orders
Low production volume
Heterogeneous products and services
Low product flexibility
Low product standardization
Focus on individual batch
Focus on standardized units
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