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Cma 1 Assignt

Financial accounting

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3 views

Cma 1 Assignt

Financial accounting

Uploaded by

newaybeyene5
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Hawassa University

Department of Cooperatives
Assignment I- for the course cost and management accounting I
Assignment type: group
Maximum number of group mates: 4
Maximum marks allotted: 20%
Submission date: November 12/2024

Note: Each group mate should actively participate in the assignment

Q#1
Canseco Company Beginning of 2011 End of 2011
Direct materials inventory $25,000 $35,000
Work-in-process inventory 31,000 20,000
Finished goods inventory 18,000 23,000
Purchases of direct materials 95,000
Direct manufacturing labor 35,000
Indirect manufacturing labor 25,000
Plant insurance 9,000
Depreciation—plant, building, and equipment 21,000
Repairs and maintenance—plant 5,000
Marketing, distribution, and customer-service costs 100,000
General and administrative costs 39,000

Required:
1. Prepare a schedule for the cost of goods manufactured for 2011. Required
2. Revenues for 2011 were $300 million. Prepare the income statement for 2011.
Q#2
Ron Williams recently took over as the controller of Johnson Brothers Manufacturing. Last
month, the previous controller left the company with little notice and left the accounting
records in disarray. Ron needs the ending inventory balances to report first quarter numbers.
For the previous month (March 2011) Ron was able to piece together the following
information:

Direct materials purchased $ 300,000


Work-in-process inventory, 3/1/2011 $ 40,000
Direct materials inventory, 3/1/2011 $ 100,000
Finished goods inventory, 3/1/2011 $ 320,000
Conversion Costs $ 660,000
Total manufacturing costs added during the period $ 960,000
Cost of goods manufactured 3 times direct materials used
Gross margin as a percentage of revenues 30%
Revenues $1,200,000

Calculate the cost of:


A. Direct materials inventory, 3/31/2011
B. Work-in-process inventory, 3/31/2011
C. Finished goods inventory, 3/31/2011

1
3. The administrators of San Diego County’s Memorial Hospital are interested in
identifying the various costs and expenses that are incurred in producing a patient’s
X-ray. A list of such costs and expenses in presented below:

No. Costs Direct Direct Service


Material labour overhead
1 Salaries for the X-ray machine technicians.
2 Wages for the hospital janitorial personnel.
3 Film costs for the X-ray machines.
4 Property taxes on the hospital building.
5 Salary of the X-ray technicians’ supervisor.
6 Electricity costs for the X-ray department.
7 Maintenance and repairs on the X-ray machines.
8 X-ray department supplies.
9 Depreciation on the X-ray department equipment.
10 Depreciation on the hospital building.
Required:
The administrators want these costs and expenses to be classified as: (a) direct materials, (b)
direct labour, or (c) service overhead. Therefore classify the costs by marking on the
appropriate column of costs

4. The John Equipment Company estimates its carrying cost at 10% of


inventory price and it’s ordering cost at $10 per order. The estimated
annual requirement is 50,000 units at a price of $5 per unit.
Required:
A. What is the most economical number of units to order?
B. How many orders should be placed in a year?
C. How often should an order be placed?

5. Distinguish between product and period costs

6. Explain the major similarities and differences between financial accounting


and Managerial accounting

7. Explain the major similarities and differences between Job order costing and
Process costing systems

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