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ACC 349 Week 1 Connect Assignment

Access Connect.

Complete the Week 1 Problems

 1.

 

Which of the following are forms of detective internal control?

Relating data sets to one another to identify and resolve discrepancies.

 

Comparing actual performance to various benchmarks to identify unexpected results.

 

Maintaining written and/or electronic evidence to support transactions.

 

Putting passwords on a computer to restrict access.




 2.

 

The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed:

 

   

  Costs incurred:  

    Direct labor cost $ 81,000  

    Purchases of raw materials $ 138,000  

    Manufacturing overhead $ 210,000  

    Advertising expense $ 45,000  

    Sales salaries $ 101,000  

    Depreciation, office equipment $ 224,000  

________________________________________

   

  Beginning

of the Year End of

the Year

  Inventories:  

    Raw materials $ 8,800 $ 10,500  

    Work in process $ 5,700 $ 20,700  

    Finished goods $ 71,000 $ 25,900  

________________________________________

 

Required:


1. Prepare a schedule of cost of goods manufactured.

   

           

 

2. Prepare the cost of goods sold section of Mason Company’s income statement for the year.






3.

 

Arden Company reported the following costs and expenses for the most recent month:

 

   

  Direct materials $ 75,000  

  Direct labor $ 37,000  

  Manufacturing overhead $ 15,000  

  Selling expenses $ 18,000  

  Administrative expenses $ 30,000  

________________________________________

 

Required:


1. What is the total amount of product costs?

 

       

 

2. What is the total amount of period costs?

      

       

 

3. What is the total amount of conversion costs?

     

       

 

4. What is the total amount of prime costs?






4.

 

Mickley Company’s predetermined overhead rate is $23.00 per direct labor-hour and its direct labor wage rate is $13.00 per hour. The following information pertains to Job A-500:

  

     

  Direct materials $210  

  Direct labor $130  

________________________________________

  

Required:


1. What is the total manufacturing cost assigned to Job A-500?

   

         

 

2. If Job A-500 consists of 70 units, what is the average cost assigned to each unit included in the job? 


 




5.

 

Helix Corporation produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is added at the beginning of processing in that department. Data for May for the first production department follow:

    

 

  Percent Complete

  Units Materials Conversion

  Work in process inventory, May 1 55,000  75 % 40 %  

  Work in process inventory, May 31 35,000  50 % 25 %  

   

  Materials cost in work in process inventory, May 1 $ 47,100   

  Conversion cost in work in process inventory, May 1 $ 12,900   

  Units started into production 247,500   

  Units transferred to the next production department 267,500   

  Materials cost added during May $ 320,550   

  Conversion cost added during May $ 186,000   

________________________________________ 

    

 

Required:


1. Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units for May for the first process.

    


   

2. Compute the costs per equivalent unit for May for the first process. (Round your answers to 2 decimal places.)

    


   

3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in May. (Round your intermediate calculations to 2 decimal places.)




6.

Managerial Accounting helps managers perform

Planning

Controlling

Decision-making

All of the above






7.

Financial accounting focuses on decisions affecting the future.

True

False




8.

The IMA Statement of Ethical Professional Practice standards include all of the following EXCEPT:

Honesty

Credibility

Confidence

Competence





ACC 349 Week 2 Connect Assignment

Access Connect.

Complete the Week 2 Problems.

1.

 

The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event:

 

   

  Dinner (per person) $7  

  Favors and program (per person) $4  

  Band $300  

  Rental of ballroom $1,700  

  Professional entertainment during intermission $4,000  

  Tickets and advertising $600  

________________________________________

 

The committee members would like to charge $33 per person for the evening’s activities.

 

Required:

1. Compute the break-even point for the dinner-dance (in terms of the number of persons who must attend).

   

        

 

2. Assume that last year only 250 persons attended the dinner-dance. If the same number attend this year, what price per ticket must be charged in order to break even? (Round your answer to 2 decimal places.)

   

       


2.

 

Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:

  

   

  Variable costs per unit:  

    Manufacturing:  

        Direct materials $ 21  

        Direct labor $ 11  

        Variable manufacturing overhead $ 3  

    Variable selling and administrative $ 2  

  Fixed costs per year:  

    Fixed manufacturing overhead $ 320,000  

    Fixed selling and administrative expenses $ 90,000  

________________________________________ 

 

During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $57 per unit.

 

Required:

1. Assume the company uses variable costing:

 

a. Compute the unit product cost for year 1 and year 2.

   

              

 

b. Prepare an income statement for year 1 and year 2.

   

             

 

2. Assume the company uses absorption costing:


 

a. Compute the unit product cost for year 1 and year 2. (Round your answer to 2 decimal places.)

   

              

 

b. Prepare an income statement for year 1 and year 2. (Round your intermediate calculations to 2 decimal places)

   

             

 

3. Reconcile the difference between variable costing and absorption costing net operating income in year 1 and year 2.

   





3.

Award: 6 out of 6.00 points

 


 

Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow:

  

  Product

  A B C

  Selling price $ 240 $ 350 $ 300  

  ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________

  Variable expenses:  

    Direct materials 32 80 40  

    Other variable expenses 136 130 185  

  ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________

  Total variable expenses 168 210 225  

  ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________

  Contribution margin $ 72 $ 140 $ 75  

  ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________

  Contribution margin ratio 30 % 40 % 25 %

  ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________

________________________________________

  

The same raw material is used in all three products. Barlow Company has only 4,000 pounds of raw material on hand and will not be able to obtain any more of it for several weeks due to a strike in its supplier’s plant. Management is trying to decide which product(s) to concentrate on next week in filling its backlog of orders. The material costs $8 per pound.

  

Required:

1. Compute the amount of contribution margin that will be obtained per pound of material used in each product.

   

       

2a. Compute the amount of contribution margin on each product.

   

       

 

2b. Which orders would you recommend that the company work on next week—the orders for product A, product B, or product C?

   

  

3. A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. If there is unfilled demand for all three products, what is the highest price that Barlow Company should be willing to pay for an additional pound of materials? 

   

     

 


4.

 

Imperial Jewelers is considering a special order for 11 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is $401.00 and its unit product cost is $268.00 as shown below:

 

   

  Direct materials $ 143    

  Direct labor 85    

  Manufacturing overhead 40    

  ________________________________________ ________________________________________

  Unit product cost $ 268    

  ________________________________________________________________________________ ________________________________________________________________________________

________________________________________

 

Most of the manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $7 of the overhead is variable with respect   to the number of bracelets produced. The customer who is interested in the special bracelet order would like special filigree applied to the bracelets. This filigree would require additional materials costing $6 per bracelet and would also require acquisition of a special tool costing $466 that would have no other use once the special order is completed. This order would have no effect on the company’s regular sales and the order could be fulfilled using the company’s existing capacity without affecting any other order.

 

Required:

What effect would accepting this order have on the company’s net operating income if a special price of $361.00 per bracelet is offered for this order? (Enter all amounts as positive values.)

 

  

Should the special order be accepted at this price?



ACC 349 Week 3 Team Assignment, Part 1

Read the following scenario below:

Leighton Beridon owns "Jeemp Farms", located near Weimar, TX. The farm produces pecan trees and sod. He has so many orders from the Houston metropolitan area that he is able to sell all his inventory each year, but he is not netting as much as he has in past years. His daughter, Liesl Beridon, came home from college over Thanksgiving and mentioned ABC costing, which she learned about in her cost accounting class. Mr. Beridon does not really know what ABC costing is and is skeptical as to whether it would be right for his business. He has hired your company to educate him about ABC and whether or not he should use an ABC system. Over the next few weeks, you will work towards helping Mr. Beridon decide what is the best route for his company to take. 

Shortly after you get started, Mr. Beridon sends you an email stating that he feels he needs to discontinue the sod portion of his business and focus on his tree sector, as he can charge more per tree than he can charge for a foot of sod. He sends you an email stating, "I can charge so much more for a tree than a foot of grass. Therefore, I am planning on discontinuing the sod portion of the business immediately as I make so much more on the trees! I am going to plant all my sod acres with trees".

Write a 700- to 1,050-word paper plan for your boss explaining how you will analyze Jeemp Farms.

Include the following:

Prepare an argument convincing him to hold off on his decision and see the results of your analysis first. As you have not had time to do any analysis yet, you need to convince Mr. Beridon to wait on whether to discontinue his sod business.

Project potential benefits Mr. Beridon could gain from using an ABC system.

Explain how ABC creates these benefits.

Your team is planning on conducting an analysis of whether ABC would be beneficial to Mr. Beridon. Create a process for conducting this analysis.

Include the following:

1. How could you apply the data in the company's general ledger?

2. Determine questions to ask Mr. Beridon.

3. Determine other information to gather.

4. Explain how this additional information could help you in your analysis?

5. Explain how you would decide on a final recommendation.

Format your assignment to APA standards.

Click the Assignment Files tab to submit as a Microsoft® Word document.


ACC 349 Week 3 Connect Assignment

Access Connect.

Complete the Week 3 Problems.

 1.

Award: 20 out of 20.00 points

 

 

Lehner Corporation has provided the following data from its activity-based costing accounting system:

 

  Indirect factory wages $614,000  

  Factory equipment depreciation $350,000  

 

Distribution of Resource Consumption across Activity Cost Pools:

 

Activity Cost Pools

  Customer

Orders Product

Processing Other Total

  Indirect factory wages 60%      30%      10%  100%  

  Factory equipment depreciation 45%      50%      5%  100%  

 

The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.

 

How much indirect factory wages and factory equipment depreciation cost would NOT be assigned to products using the activity-based costing system?

$350,000

$614,000

$0

$78,900





2.

Award: 40 out of 40.00 points

 

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 6%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital $106 to purchase these supplies.

     For years, Worley believed that the 6% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown below:

  

  Activity Cost Pool (Activity Measure) Total Cost Total Activity

  Customer deliveries (Number of deliveries) $ 486,000 6,000 deliveries

  Manual order processing (Number of manual orders) 684,000 9,000 orders

  Electronic order processing (Number of electronic orders) 288,000 12,000 orders

  Line item picking (Number of line items picked) 559,000 430,000 line items

  Other organization-sustaining costs (None) 660,000  

  ________________________________________ ________________________________________  

  Total selling and administrative expenses $ 2,677,000  

  ________________________________________________________________________________ ________________________________________________________________________________  

________________________________________

  

  Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (both hospitals purchased a total quantity of medical supplies that had cost Worley $40,000 to buy from its manufacturers):

  

  Activity

________________________________________

  Activity Measure University Memorial

  Number of deliveries 13            25            

  Number of manual orders 0            48            

  Number of electronic orders 19            0            

  Number of line items picked 160            210            

________________________________________

  

Required:

1. Compute the total revenue that Worley would receive from University and Memorial.

   

       

2. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)

   

       

3. Compute the total activity costs that would be assigned to University and Memorial. (Round your intermediate calculations and final answers to 2 decimal places.)

   

          

4. Compute Worley’s customer margin for University and Memorial. (Hint: Do not overlook the $40,000 cost of goods sold that Worley incurred serving each hospital.) (Loss amount should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.)

   

       


Garrison 15e Recheck 2015-01-16

3.

Award: 20 out of 20.00 points

 

 

SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system:

  

   

  Driver and guard wages $ 1,180,000  

  Vehicle operating expense 610,000  

  Vehicle depreciation 490,000  

  Customer representative salaries and expenses 520,000  

  Office expenses 380,000  

  Administrative expenses 680,000  

  ________________________________________ ________________________________________

  Total cost $ 3,860,000  

  ________________________________________________________________________________ ________________________________________________________________________________

________________________________________

  

The distribution of resource consumption across the activity cost pools is as follows:

  

  Travel  Pickup

and

Delivery Customer

Service Other Totals  

  Driver and guard wages 50 % 35 % 10 % 5 % 100 %

  Vehicle operating expense 70 % 5 % 0 % 25 % 100 %

  Vehicle depreciation 60 % 15 % 0 % 25 % 100 %

  Customer representative salaries and expenses 0 % 0 % 90 % 10 % 100 %

  Office expenses 0 % 20 % 30 % 50 % 100 %

  Administrative expenses 0 % 5 % 60 % 35 % 100 %

________________________________________

  

Required:

Complete the first stage allocations of costs to activity cost pools.

 


4.

Award: 10 out of 10.00 points

 

 

In activity-based costing, nonmanufacturing costs are not assigned to products.

True

False




5.

Award: 10 out of 10.00 points

 

 

Which of the following would probably be the most accurate measure of activity to use for allocating the costs associated with a factory's purchasing department?

Machine-hours

Direct labor-hours

Number of orders processed

Cost of materials purchased





ACC 349 Week 4 Team Assignment, Part 2

Resource: Jeemp Template.

Mr. Beridon received your requests for information and returned data which you have compiled in an Microsoft® Excel® spr

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