accounting 202

; Please
complete the following five 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.

1. ; 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:

Find the unknowns for each of the
divisions.

2. ;
Computations using a job order
system

General
Corporation employs a job order cost system. On May 1 the following balances
were extracted from the general ledger;

Work
in process ; $ 35,200

Finished
goods ; 86,900

Cost
of goods sold ; 128,700

Work
in Process consisted of two jobs, no. 101 ($20,400) and no. 103 ($14,800).
During May, direct materials requisitioned from the storeroom amounted to
$96,500, and direct labor incurred totaled $114,500. These figures are
subdivided as follows:

Job
no. 115 was the only job in process at the end of the month. Job no. 101 and
three “other” jobs were sold during May at a profit of 20% of cost.
The “other” jobs contained material and labor charges of $21,000 and
$17,400, respectively.

General
applies overhead daily at the rate of 150% of direct labor cost as labor
summaries are posted to job orders. The firm’s fiscal year ends on May 31.

Instructions:

a. ;
Compute the total
overhead applied to production during May.

b. ;
Compute the cost of the
ending work in process inventory.

c. ;
Compute the cost of
jobs completed during May.

d. ;
Compute the cost of
goods sold for the year ended May 31.

3. ;
High-low
method

The following cost data pertain to 20X6 operations of Heritage Products:

The
company uses the high-low method to analyze costs.

a. ;
Determine the variable
cost per order shipped.

b. ;
Determine the fixed
shipping costs per quarter.

c. ;
If present cost
behavior patterns continue, determine total shipping costs for 20X7 if activity
amounts to 570 orders.

4. ;
Break-even
and other CVP relationships

Cedars Hospital has average
revenue of $180 per patient day. Variable costs are $45 per patient day; fixed
costs total $4,320,000 per year.

a. ;
How many patient days does the
hospital need to break even?

b. ;
What level of revenue is needed to
earn a target income of $540,000?

c. ;
If variable costs drop to $36 per
patient day, what increase in fixed costs can be tolerated without changing the
break-even point as determined in part (a)?

5. ;
Direct and absorption costing

The information that follows
pertains to Consumer Products for the year ended December 31, 20X6.

The unit selling price is $26.
Assume that costs have been stable in recent years.

Instructions:

a. ;
Compute the number of units in the
ending inventory.

b. ;
Calculate the cost of a unit
assuming use of:

1. ;
Direct costing.

2. ;
Absorption costing.

c. ;
Prepare an income statement for
the year ended December 31, 20X6, by using direct costing.

d. ;
Prepare an income statement for
the year ended December 31, 20X6, by using absorption costing.