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C of C - ACCT 204 - Class Notes - Week 1

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School: College of Charleston
Department: Accounting
Course: Managerial Accounting
Professor: Jeffrey Yost
Term: Spring 2019
Tags: Managerial and Accounting
Name: Managerial Acct week 1 notes
Description: This is all of chapter one and part of chapter 2
Uploaded: 01/16/2019
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School: College of Charleston
Department: Accounting
Course: Managerial Accounting
Professor: Jeffrey Yost
Term: Spring 2019
Tags: Managerial and Accounting
Name: Managerial Acct week 1 notes
Description: This is all of chapter one and part of chapter 2
Uploaded: 01/16/2019

Unformatted text preview: DL+DM DL+ MOH PRODUCT COSTS Direct Materials Direct Labor Mfg. Overhead Period Cost Prime Cost Conversion Cost Production supervisor salary Cost of fiberglass Wages of assembly person Sales commission Cost of high-grade wheels Screws Factory rent Wages of skateboard painter Factory utilities Utilities for corporate office E1-8 Classifying and Calculating Costs The following information is available for Wonderway, Inc., for 2015: could beon future Test Factory rent Company advertising Wages paid to laborers Depreciation for president's vehicle Indirect production labor Utilities for factory Production supervisor's salary President's salary Direct materials used Sales commissions Factory insurance Depreciation on factory equipment $40,000 20.000 82.000 8,000 1.800 36,000 30,000 60.000 34,500 12.000 DL= 82,000 MOH= 40,000+ 36,000+1,800 +12,000+ 30,000 + 26,000 $145,800 DL+ DM= 82,000 +34,500 = $116,500 7.500 DL + MOH = 82,000+ 145,800 = 26.000 227,800 Total man= 82,000 + 34,500 + 145,800 = 262,300 Period = 20,000 8,000 60,000 + 7,500 $ 95,500 Required: Calculate each of the following costs for Wonderway 1. Direct labor 2. Manufacturing overhead. 3. Prime cost 4. Conversion cost 5. Total manufacturing cost. 6. Period expensesACC+ 204 Chapter 2- Job order costing January 15/2019 Job order or process costing normal costing Actual cost tiem DM DL MOH Dm DL Job order costing is process costing Hom 9 90 20 . Process costing: - standardized or homogeneous prcoduct or service) Production is broken into basic stops and processes - costs are accumulctted by produkt and averages per unit -Production report for each process o Joo order costing: - Customized or unique product or service) - Each unit is unique or customized - costs are accumulated by job - Job cost sheet for each unit, customer or job Manufacturing costs and source Dowments = x Source Documents costs side Note! -material requisition form - Direct materials Cost drivere - Direct labor -Direct labor time ticket. the cost that - manufacturing overhead -No Source document desta - Specific jobcosts Summary -Job cost sheet costs, most common manufacturing Overhead (MOH) (laborhours) - cannot be oirectly traced to individual jobs Assign costs using a predetermined overhead rate(POR) and - based on estimated total overhead costs - Divided by the estimated total cost driver POR = Total Estimated Moh costs total Estimated cost Driver ex= $100,000 - $10/ hour 500 x 10 = $5,000 10,000 labor hours 500 L/H.continued.net Allocation based - cost driver or - fuences the amount of MOH Lonce the POR B determined calculate mol. 2 - MOH - POR X Actual cost driver Apply Mon to the job - Determine the difference between applied overhead and actual overhead (later in Chapter) DR MOH CR Actual costs Applied MOH True cost Applied manfaining overhead A MOH= POR X Actual cost Driver ex = $ 10 X 500 Labor bours Applied Moh = $5,000