Prepare a schedule of cost of goods manufactured

Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)
Subject
Business Finance

Course
MANAGERIAL ACCOUNTING

School
Campbellsville University

Question Description
PART A-2 of the uploaded document .( Case 1)
Part A-2: Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement. Please complete the required part for it.

ACC 601-Managerial Accounting Group Assignment 1 (80 points) Instructions: 1. As a group, complete the following activity in good form. Use excel or word only. Provide all supporting calculations to show how you arrived at your numbers 2. Add only the names of group members who participated in the completion of this assignment. If your teammate is present at the residency but did not participate, his/her name should not be included in your document. 3. Submit only one copy of your completed work via Moodle. Do not send it to me by email. 4. Due: Sunday, September 15 at 11:00 PM EST. Late submission will not be accepted. Part A-1: Application of Job Order Costing “Blast it!” said David Wilson, president of Teledex Company. “We’ve just lost the bid on the Koopers job by $3,000. It seems we’re either too high to get the job or too low to make any money on half the jobs we bid.” Teledex Company manufactures products to customers’ specifications and uses a joborder costing system. The company uses a plantwide predetermined overhead rate based on direct labor cost to apply its manufacturing overhead (assumed to be all fixed) to jobs. The following estimates were made at the beginning of the year: Manufacturing overhead Direct labor Department Fabricating Machining Assembly Total Plant $ 355,250 $ 406,000 $ 91,350 $ 852,600 $ 203,000 $ 101,500 $ 304,500 $ 609,000 Jobs require varying amounts of work in the three departments. The Koopers job, for example, would have required manufacturing costs in the three departments as follows: Direct materials Direct labor Manufacturing overhead Fabricating $3,300 $3,400 ? Department Machining $ 200 $ 500 ? Assembly $1,700 $6,500 ? Total Plant $ 5,200 $10,400 ? Required: 1. Using the company's plantwide approach: a. Compute the plantwide predetermined rate for the current year. b. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. 2. Suppose that instead of using a plantwide predetermined overhead rate, the company had used departmental predetermined overhead rates based on direct labor cost. Under these conditions: a.Compute the predetermined overhead rate for each department for the current year. b. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. 4. Assume that it is customary in the industry to bid jobs at 150% of total manufacturing cost (direct materials, direct labor, and applied overhead). a.What was the company’s bid price on the Koopers job using a plantwide predetermined overhead rate? b.What would the bid price have been if departmental predetermined overhead rates had been used to apply overhead cost? Part A-2: Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $216,000 Purchases of raw materials $264,000 Direct labor ? Administrative expenses $159,000 Manufacturing overhead applied to work in process $368,000 Actual manufacturing overhead cost $355,000 Inventory balances at the beginning and end of the year were as follows: Beginning of YearEnd of Year Raw materials $ 51,000 $ 33,000 Work in process ? $ 32,000 Finished goods $ 34,000 ? The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $735,000; the unadjusted cost of goods sold totaled $669,000; and the net operating income was $32,000. The company’s underapplied or overapplied overhead is closed to Cost of Goods Sold. Required: Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.) Part B-1: Process Costing using Weighted Average "I think we goofed when we hired that new assistant controller," said Ruth Scarpino, president of Provost Industries. "Just look at this report that he prepared for last month for the Finishing Department. I can’t understand it." Finishing Department costs: Work in process inventory, April 900 units; materials 100% complete; conversion 60% complete Costs transferred in during the month from the preceding department, 2,400 units Materials cost added during the month Conversion costs incurred during the month Total departmental costs Finishing Department costs assigned to: Units completed and transferred to finished goods, 2,700 units at $24.340 per unit Work in process inventory, April 30, 600 units; materials 0% complete; conversion 50% complete Total departmental costs assigned $ 8,561* 25,381 10,017 21,750 $65,709 $65,709 0 $65,709 *Consists of cost transferred in, $4,286; materials cost, $2,025; and conversion cost, $2,250. "He's struggling to learn our system," replied Frank Harrop, the operations manager. "The problem is that he's been away from process costing for a long time, and it's coming back slowly." "It's not just the format of his report that I'm concerned about.