Journalize production activities and compute the costs from production to sold goods. Introduction Note: Accounting requires specific steps that need to be executed in a sequence. T
Journalize production activities and compute the costs from production to sold goods.
Introduction
Note: Accounting requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order.
Manufacturing costs are separated out by department or function.
Instructions
Note: Accounting requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order.
Use the Production Process and Flow Costs Template [XLSX] to complete this assessment. Based on the data provided in the template, complete the financial problems on production cost flow and measurement.
Competencies Measured
By successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment scoring guide criteria:
- Competency 1: Analyze cost accounting systems.
- Compute the cost of products transferred from production to finished goods.
- Competency 2: Apply sound budgeting principles.
- Prepare journal entries to record production activities.
- Competency 4: Analyze financial statements.
- Compute the cost of products transferred from production to goods sold.
- Competency 5: Communicate in a manner that is professional and consistent with expectations for professionals in the field of accounting.
- Communicate quantitative information accurately and effectively.
Problem 1
| BUS-FPX4061 – Managerial Accounting Principles | ||||||||||||||||||||||||
| Assessment 4: Production Process and Flow Costs Worksheet | ||||||||||||||||||||||||
| Problem 1 | Input values | |||||||||||||||||||||||
| Solve the given problem based on the following information. | ||||||||||||||||||||||||
| Company name | Jordan | |||||||||||||||||||||||
| Jordan Company's inventory records indicate the following information: | Date | 31-May | ||||||||||||||||||||||
| Jordan Company Inventories (as of May 31) | Jordan Company Inventories (as of May 31) | |||||||||||||||||||||||
| Inventory | Beginning Inventory ($) | Ending Inventory ($) | Inventory | Beginning Inventory ($) | Ending Inventory ($) | |||||||||||||||||||
| Raw materials | 72,000 | 110,000 | Raw materials | 72,000 | 110,000 | |||||||||||||||||||
| Goods in process | 156,000 | 250,000 | Goods in process | 156,000 | 250,000 | |||||||||||||||||||
| Finished goods | 160,000 | 198,000 | Finished goods | 160,000 | 198,000 | |||||||||||||||||||
| Production activities for May (in $) | Production activities for May (in $) | |||||||||||||||||||||||
| Raw materials (credit purchases) | 200,000 | Raw materials (credit purchases) | 200,000 | TRUE | ||||||||||||||||||||
| Company payroll cost (cash) | 400,000 | Company payroll cost (cash) | 400,000 | TRUE | ||||||||||||||||||||
| Miscellaneous overhead cost (other accounts credited) | 170,500 | Miscellaneous overhead cost (other accounts credited) | 170,500 | |||||||||||||||||||||
| Materials | Direct | 21500 | 120,000 | Materials | Direct | 120,000 | ||||||||||||||||||
| Indirect | 46750 | 42,000 | Indirect | 42,000 | ||||||||||||||||||||
| Labor | Direct | 15500 | 350,000 | Labor | Direct | 350,000 | ||||||||||||||||||
| Indirect | 176000 | 50,000 | Indirect | 50,000 | ||||||||||||||||||||
| Overhead rate as a percent of direct labor | 75% | Overhead rate as a percent of direct labor | 75% | |||||||||||||||||||||
| Sales on credit | 0.55 | 1,000,000 | Sales on credit | 1,000,000 | ||||||||||||||||||||
| 750000 | ||||||||||||||||||||||||
| Compute the cost of goods transferred from production to finished goods, | ||||||||||||||||||||||||
| and compute the cost of goods sold. | ||||||||||||||||||||||||
| Cost of Goods Transferred and Cost of Goods Sold | ||||||||||||||||||||||||
Problem 2
| Problem 2 | Input values | |||||||||||||||||||||||
| Solve the given problem based on the following information. | ||||||||||||||||||||||||
| Company name | Jordan | |||||||||||||||||||||||
| Jordan Company's inventory records indicate the following information: | Date | 31-May | ||||||||||||||||||||||
| Jordan Company Inventories (as of May 31) | Jordan Company Inventories (as of May 31) | |||||||||||||||||||||||
| Inventory | Beginning Inventory ($) | Ending Inventory ($) | Inventory | Beginning Inventory ($) | Ending Inventory ($) | |||||||||||||||||||
| Raw materials | 57,600 | 88,000 | Raw materials | 57,600 | 88,000 | |||||||||||||||||||
| Goods in process | 124,800 | 200,000 | Goods in process | 124,800 | 200,000 | |||||||||||||||||||
| Finished goods | 128,000 | 158,400 | Finished goods | 128,000 | 158,400 | |||||||||||||||||||
| Production activities for May (in $) | Production activities for May (in $) | |||||||||||||||||||||||
| Raw materials (credit purchases) | 160,000 | Raw materials (credit purchases) | 160,000 | TRUE | ||||||||||||||||||||
| Company payroll cost (cash) | 320,000 | Company payroll cost (cash) | 320,000 | TRUE | ||||||||||||||||||||
| Miscellaneous overhead cost (other accounts credited) | 136,400 | Miscellaneous overhead cost (other accounts credited) | 136,400 | |||||||||||||||||||||
| Materials | Direct | 21500 | 96,000 | Materials | Direct | 96,000 | ||||||||||||||||||
| Indirect | 46750 | 33,600 | Indirect | 33,600 | ||||||||||||||||||||
| Labor | Direct | 15500 | 280,000 | Labor | Direct | 280,000 | ||||||||||||||||||
| Indirect | 176000 | 40,000 | Indirect | 40,000 | ||||||||||||||||||||
| Overhead rate as a percent of direct labor | 75% | Overhead rate as a percent of direct labor | 75% | |||||||||||||||||||||
| Sales on credit | 0.55 | 800,000 | Sales on credit | 800,000 | ||||||||||||||||||||
| 750000 | ||||||||||||||||||||||||
| Record production activities for May 31 in the Summary Journal Entries table below. | ||||||||||||||||||||||||
| Summary Journal Entries | ||||||||||||||||||||||||
| A. | ||||||||||||||||||||||||
| May 31 | Raw Materials Inventory | |||||||||||||||||||||||
| B. | ||||||||||||||||||||||||
| May 31 | Goods in Process Inventory | |||||||||||||||||||||||
| C. | ||||||||||||||||||||||||
| May 31 | Factory Overhead | |||||||||||||||||||||||
| D. | ||||||||||||||||||||||||
| May 31 | Factory Payroll | |||||||||||||||||||||||
| E. | ||||||||||||||||||||||||
| May 31 | Goods in Process Inventory | |||||||||||||||||||||||
| F. | ||||||||||||||||||||||||
| May 31 | Factory Overhead | |||||||||||||||||||||||
| G. | ||||||||||||||||||||||||
| May 31 | Factory Overhead | |||||||||||||||||||||||
| H. | ||||||||||||||||||||||||
| May 31 | Goods in Process Inventory | |||||||||||||||||||||||
| I. | ||||||||||||||||||||||||
| May 31 | Finished Goods Inventory | |||||||||||||||||||||||
| J. | ||||||||||||||||||||||||
| May 31 | Accounts Receivable | |||||||||||||||||||||||
| May 31 | ||||||||||||||||||||||||
| Finished Goods Inventory | ||||||||||||||||||||||||
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