Accounting 321, Cost Accounting Quiz 2 Part B Student Name: Either type directly in this file or you can handwrite very neatly if you prefer on the...

Accounting 321, Cost Accounting                        Quiz 2 Part B

Student Name:

Either type directly in this file or you can handwrite very neatly if you prefer on the paper and post a Word document. If you would like, you can also use an Excel file and post that as well, but in any case you must show all your work where appropriate to get full credit. Please save your file with your first and last name at the beginning of the file name. When completed, please post in the Assignment tab. Please highlight or bold your final answer.

 (10 points) For 2010, Jake's Dog Supply Manufacturing uses machine-hours as the only overhead cost-allocation base. The accounting records contain the following information:

                                                                     Estimated          Actual

            Manufacturing overhead costs         $200,000         $240,000

            Machine-hours                                     40,000             50,000

Using job costing, the 2010 budgeted manufacturing overhead rate is:

Using normal costing, the amount of manufacturing overhead costs allocated to jobs during 2010 is:

(15 points) The Morgan Models company manufacturers replica plastic airplane and motorized vehicle models. During October, the firm's Assembly Department started production of 60,000 models. During the month, the firm completed 66,000 models, and transferred them to the Finishing Department. The firm ended the month with 22,000 models in ending inventory. There were 28,000 models in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing is used by Morgan. Beginning work in process was 25% complete as to conversion costs, while ending work in process was 50% complete as to conversion costs.

Beginning inventory:

      Direct materials costs      $39,200

      Conversion costs             $30,800

Manufacturing costs added during the accounting period:

      Direct materials costs      $90,000

      Conversion costs           $280,000

How many of the units that were started during October were completed during October?

What were the equivalent units for conversion costs during October?

What is the amount of direct materials cost assigned to ending work-in-process inventory at the end of October?

(25 points) The following information pertains to the January operating budget for Ken’s Corporation.

      ∙     Budgeted sales for January $200,000 and February $100,000.

      ∙     Collections for sales are 60% in the month of sale and 40% the next month.

      ∙     Gross margin is 30% of sales.

      ∙     Administrative costs are $10,000 each month.

      ∙     Beginning accounts receivable is $20,000.

      ∙     Beginning inventory is $14,000.

      ∙     Beginning accounts payable is $65,000. (All from inventory purchases.)

      ∙     Purchases are paid in full the following month.

      ∙     Desired ending inventory is 20% of next month's cost of goods sold (COGS).

For January, budgeted cash collections are ________.

At the end of January, budgeted accounts receivable is ________.

For January, budgeted cost of goods sold is ________.

For January, budgeted net income is ________.

At the end of January, budgeted ending inventory is ________.