{"id":2812,"date":"2020-04-19T14:26:07","date_gmt":"2020-04-19T14:26:07","guid":{"rendered":"https:\/\/assignmenttask.com\/answers\/?p=2812"},"modified":"2020-04-19T14:27:29","modified_gmt":"2020-04-19T14:27:29","slug":"cost-accounting-assignment-question-and-answers","status":"publish","type":"post","link":"https:\/\/assignmenttask.com\/answers\/cost-accounting-assignment-question-and-answers\/","title":{"rendered":"Cost Accounting Assignment Question and Answers"},"content":{"rendered":"

Looking for Cost Accounting Assignment Question and Answers? Get cost accounting assignment help<\/strong><\/a> by PhD experts. Choose cost accounting assignment topics & get answers to cost accounting assignment questions. World’s No.1 Assignment Answers<\/strong><\/a> Provide in Australia, UK, USA and Many Countries at students friendly price.<\/p>\n

\"Cost

 <\/p>\n

15042020-105321PM Cost Accounting Assignment 1<\/strong><\/h2>\n

The following data is provided by Naseer Textile for the year<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/tr>\n
Inventories:<\/td>\nJan, 01<\/td>\nDec, 31<\/td>\n<\/tr>\n
Material<\/td>\nRs. 58,000<\/td>\nRs.33,000<\/td>\n<\/tr>\n
Work in process<\/td>\n69,000<\/td>\n38,000<\/td>\n<\/tr>\n
Finished goods<\/td>\n74,000<\/td>\n65,000<\/td>\n<\/tr>\n
Additional information:<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Building<\/td>\nRs.6,000,000<\/td>\n<\/tr>\n
Purchases<\/td>\n460,000<\/td>\n<\/tr>\n
Sales discounts<\/td>\n7,000<\/td>\n<\/tr>\n
Factory overheads paid<\/td>\n38,000<\/td>\n<\/tr>\n
Marketing and Admin Expense paid<\/td>\n345,000<\/td>\n<\/tr>\n
Depreciation 2% (90% manufacturing, 10% marketing & Admin)<\/td>\n<\/tr>\n
Sales<\/td>\n1,700,000<\/td>\n<\/tr>\n
Factory wages<\/td>\n400,000<\/td>\n<\/tr>\n
Factory supervisor salary<\/td>\n70,000<\/td>\n<\/tr>\n
Office payroll<\/td>\n125,000<\/td>\n<\/tr>\n
Carriage in<\/td>\n7,500<\/td>\n<\/tr>\n
Carriage out<\/td>\n4,000<\/td>\n<\/tr>\n
Mark up on long term loan<\/td>\n16,000<\/td>\n<\/tr>\n
Income tax<\/td>\n40%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Required: Prepare income statement for the year end.<\/p>\n

Q-2<\/strong><\/p>\n

Farhan Auto parts Company uses job order costing system. The estimated costs and other estimated data for 2018 year were estimated, follows:<\/p>\n

Indirect materials costs \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026. Rs 120,000<\/p>\n

Indirect labor costs \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026 Rs 100,000<\/p>\n

Energy consumption of plant \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026Rs 300,000<\/p>\n

Energy consumption of administration \u2026\u2026\u2026\u2026\u2026Rs 100,000<\/p>\n

Insurance expense of Plant Building \u2026\u2026\u2026\u2026\u2026\u2026Rs 70,000<\/p>\n

Insurance expense of Administration Building \u2026\u2026Rs 50,000<\/p>\n

Depreciation expense of Administration Building \u2026 Rs 55,000<\/p>\n

Depreciation expense of Plant Building \u2026\u2026\u2026\u2026\u2026Rs 160,000<\/p>\n

Rent expense of Administration Building \u2026\u2026\u2026\u2026Rs 140,000<\/p>\n

Repair and maintenance of plant \u2026\u2026\u2026\u2026\u2026\u2026\u2026..Rs 20,000<\/p>\n

Machine hours estimated \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026..Rs 20,000<\/p>\n

hours Direct labor hours estimated \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026.Rs 40,000 hours<\/p>\n

 <\/p>\n

A Company gets a particular job for manufacturing Products, called \u201cPiston Sleeves-Alto Car\u201d (Job number allotted: Job# 1011) in the month of January, 2018.<\/p>\n

The actual direct materials issued on this job, dated: 09\/01\/2018 and 15\/01\/2018: Rs85, 000 and Rs75, 800 respectively.<\/p>\n

The actual direct labor worked on this job, dated: 10\/01\/2018 and 17\/01\/2018: 200 direct labor hours and its amount: Rs50, 000 and 250 direct labor hours and its amount: Rs52,500 respectively. Company applies factory overhead cost on this Job \u201con basis of predetermined factory overhead rate per direct labor hour.<\/p>\n

Required:<\/u><\/strong><\/p>\n

i). Show the necessary calculations for determining predetermined factory overhead rate per direct labor hour and per Machine hour.<\/p>\n

 <\/p>\n

ii).What will be the cost of this particular Job? {i.e., Prepare Job order cost sheet}<\/p>\n

 <\/p>\n

ii).What should company quote sales price for this job, if company\u2019s practice is to take 25% markup on each Job\u2019s cost?<\/p>\n

 <\/p>\n

Q-3<\/strong><\/p>\n

Maple leaf Company is a manufacturing firm that uses job order costing system. On January 1, the beginning of its fiscal year, the company\u2019s inventory balances were as follows:<\/p>\n

Raw materials\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0$20,000<\/p>\n

Work in process \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0$15,000<\/p>\n

Finished Goods \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0$30,000<\/p>\n

 <\/p>\n

The company applies overhead cost to jobs on the basis of machine-hours worked. For the current year, the company estimated that it would work 75,000 machine-hours and incur $450,000 in manufacturing overhead cost. The following transactions were recorded for the year<\/p>\n

    \n
  1. Raw materials were purchased on account, $410,000.<\/li>\n
  2. Raw materials were requisitioned for use in production, $380,000 ($360,000 direct materials and $20,000 indirect materials).<\/li>\n
  3. The following costs were incurred for employee services: direct labor, $75,000; indirect labor, $110,000; sales commission, $90,000; and administrative salaries, $20,000.<\/li>\n
  4. Sales travel costs were $17,000.<\/li>\n
  5. Utility costs in the factory were $43,000.<\/li>\n
  6. Advertising costs were $180,000.<\/li>\n
  7. Depreciation was recorded for the year, 350,000 (80% relates to factory operations, and 20% relates to selling and administrative activities).<\/li>\n
  8. Insurance expired during the year, $10,000 (70% relates to factory operations, and 30% relates to selling and administrative activities).<\/li>\n
  9. Manufacturing overhead was applied to production. Due to greater than expected demand for its products, the company worked 80,000 machine-hours during the year.<\/li>\n
  10. Goods costing $9, 00,000 to manufacture according to their job cost sheets were completed during the year.<\/li>\n
  11. Goods were sold on account to customers during the year at a total selling price of $1,500,000. The goods cost $870,000 to manufacture according to their job cost sheets.<\/li>\n<\/ol>\n

    Required:<\/em><\/strong><\/p>\n

      \n
    1. Prepare journal entries to record the preceding transactions.<\/li>\n
    2. Post the entries in (1) above to T-accounts (don\u2019t forget to enter the beginning balances in the inventory accounts).<\/li>\n
    3. Is manufacturing overhead under applied or over applied for the year? Prepare journal entry to close any balance in the manufacturing overhead account to cost of goods sold.<\/li>\n<\/ol>\n

       <\/p>\n

      Q-4<\/strong><\/p>\n

      For each item listed, state whether a job order costing system or process costing system would be best.<\/p>\n

        \n
      1. television repair<\/li>\n
      2. cell phone charge cords<\/li>\n
      3. glassware with company logo<\/li>\n
      4. dog food<\/li>\n
      5. golf balls<\/li>\n
      6. hotel signs to welcome guests<\/li>\n
      7. highlighters and pens<\/li>\n<\/ol>\n

         <\/p>\n

        Q-5<\/strong><\/p>\n

        National tiles Company limited uses process costing system. For the month of January, 2020, the following production data is provided to you for Department -2:<\/p>\n

        Quantitative data:<\/strong><\/p>\n