Cost Accounting Questions and Answers

During FY 2016, Bravo Manufacturing had a beginning finished goods inventory of $250 & ending finished goods inventory of $1,000. Work-in-process decreased by $500 during FY 2016 and factory overhead was $2,000. The total manufacturing costs amounted to $48,000. Use this information to determine the FY 2016 dollar amount of: (Round dollar values & enter as whole dollars only.)

1. Cost of Goods Manufactured

2. Cost of Goods Sold

During FY 2016 Bravo Manufacturing had total manufacturing costs are $520,000. Their cost of goods manufactured for the year was $475,000.  The January 1, 2017 balance of Work-in-Process Inventory is $60,000. Use this information to determine the dollar amount of the FY 2016 beginning Work-in-Process Inventory. (Round dollar values & enter as whole dollars only.)

Bravo Company's January 1, 2016 finished goods inventory was $100,000. The January 1, 2017 finished goods inventory is $80,000.  Cost of goods manufactured for the FY 2016 was $250,000. Use this information to determine the dollar amount of the FY 2016 cost of goods sold. (Round dollar values & enter as whole dollars only.)

Bravo Company manufactures quality gentlemen's clothing.  The following selected financial information for the fiscal year 2016 is provided:

Use this information to determine the dollar amount of Bravo's Direct Labor Costs for the fiscal year 2016. (Round dollar values & enter as whole dollars only.)

Bravo Manufacturing Company began operations on January 1, 2016.  Depreciation for the year amounted to $200,000: 35% relates to sales, 25% relates to administrative facilities, and 40% to the factory.  Of the total units produced during FY 2016: 75% were sold in 2016 & 25% were in the finished good inventory. Use this information to determine the dollar amount of the total depreciation that will be in the: (Round dollar values & enter as whole dollars only.)

FY 2016 Product Costs

FY 2016 Period Costs

FY 2016 Cost of Goods Sold

FY 2016 Balance Sheet

Bravo Company's January 1, 2016 finished goods inventory was $100,000. The January 1, 2017 finished goods inventory is $80,000.  Cost of goods manufactured for the FY 2016 was $260,000. Use this information to determine the dollar amount of the FY 2016 cost of goods sold. (Round dollar values & enter as whole dollars only.)

Alpha Company purchased, on account, 3,500 pounds of raw materials at $10 per pound on January 2, 2017. The production manager requisitioned and received 2,500 pounds of raw material into production on January 15. Use this information to prepare the General Journal entries (without explanation) for January 2 and January 15. If no entry is required then write "No Entry Required."

Question 2

During FY 2016, Alpha Company recorded total of factory overhead costs of $250,000. Additionally, Alpha applied a total of $245,000 of factory overhead to various job orders during FY 2016. Use this information to prepare the adjusting General Journal entry (without explanation) to close any over or under application of factory overhead. If no entry is required then write "No Entry Required."

Bravo Company uses a job order cost system and applies overhead based on estimated rates.  The overhead application rate is based on total estimated overhead costs of $250,000 and direct labor hours of 50,000. During the month of February 2017, Job A-1 incurred direct labor of 800 hours. Use this information to prepare the end of the month application General Journal entry (without explanation) of factory overhead for Job A-1 for the month. If no entry is required then write "No Entry Required."

Bravo Company uses a job order cost system and applies overhead based on estimated rates.  The overhead application rate is based on total estimated overhead costs of $270,000 and direct labor hours of 30,000. During the month of February 2017, Job A-1 incurred direct labor of 800 hours. Use this information to prepare the end of the month application General Journal entry (without explanation) of factory overhead for Job A-1 for the month. If no entry is required then write "No Entry Required."

On March 31, 2017, Alpha Corporation recorded the following factory overhead costs incurred:

Factory Manager Salary               $7,000

Factory Utilities                            2,000

Machinery Deprecation               11,000

Machinery Repairs                        2,500

Factory Insurance (prepaid)          1,000

The overhead application rate is based on direct labor hours.  The preset formula for overhead application estimated that $21,000 would be incurred, and 10,000 direct labor hours would be worked. During March, 7,100 hours were actually worked on Job Order A-2 and 3,000 hours were actually worked on Job Order A-3. Use this information to prepare the March 31 General Journal entry to record the factory overhead costs. (round any final dollar answers to the nearest whole dollar):

On March 31, 2017, Alpha Corporation recorded the following factory overhead costs incurred:

Factory Manager Salary               $6,000

Factory Utilities                                2,500

Machinery Deprecation                 10,000

Machinery Repairs                          2,000

Factory Insurance (prepaid)           1,000

The overhead application rate is based on direct labor hours.  The preset formula for overhead application estimated that $21,000 would be incurred, and 10,000 direct labor hours would be worked. During March, 7,100 hours were actually worked on Job Order A-2 and 3,000 hours were actually worked on Job Order A-3. Use this information to prepare the March 31 General Journal entries for the: (round any final dollar answers to the nearest whole dollar):

1. Allocation of factory overhead to Job Order A-2

2. Allocation of factory overhead to Job Order A-3

On March 31, 2017, Alpha Corporation recorded the following factory overhead costs incurred:

Factory Manager Salary               $6,000

Factory Utilities                                2,500

Machinery Deprecation                 10,000

Machinery Repairs                          2,000

Factory Insurance (prepaid)           1,000

The overhead application rate is based on direct labor hours.  The preset formula for overhead application estimated that $21,000 would be incurred, and 10,000 direct labor hours would be worked. During March, 7,100 hours were actually worked on Job Order A-2 and 3,000 hours were actually worked on Job Order A-3. Use this information to prepare the March 31 General Journal entry for the adjusting entry to dispose of any over or under application of factory overhead. (round any final dollar answers to the nearest whole dollar):