
ACCT 521 Connect Plus Homework 4 Solution (Liberty University)
ACCT 521 Connect Plus Homework 4
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Missouri Corporation shows the following information concerning the work in process at its plant: |
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Bears, Inc., adds materials at the beginning of the process in Department MO. |
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The following information on physical units for Department MO for the month of July is available: |
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The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. |
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The accounting records show the following information for a particular day: |
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Adams Company's production cycle starts in Department A. |
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The following information is available for July: |
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Department B is the second stage of Boswell Corporation's production cycle. |
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On November 1, beginning work in process contained 105,000 units, which were 20 percent complete as to conversion costs. |
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During November, 635,000 units were transferred in from the first stage of the production cycle. |
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On November 30, ending work in process contained 85,000 units, which were 65 percent complete as to conversion costs. |
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Materials are added at the end of the process. |
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Using the weighted-average method, what are the equivalent units of production for prior department costs, materials, and conversion costs for the month of November, respectively? |
Department C is the first stage of Cohen Corporation's production cycle. |
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The following equivalent unit information is available for conversion costs for the month of September: |
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Draper corporation computed the physical flow of units for Department D for the month of December as follows:
Munoz Sporting Equipment manufactures baseball bats and tennis rackets. |
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Department B produces the baseball bats, and Department T produces the tennis rackets. |
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Munoz currently uses plantwide allocation to allocate its overhead to all products. |
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Direct labor cost is the allocation base. |
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The rate used is 100 percent of direct labor cost. |
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Last year, revenue, materials, and direct labor were as follows: |
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Rodent Corporation produces two types of computer mice, wired and wireless. |
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The wired mice are designed as low-cost, reliable input devices. |
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The company only recently began producing the higher-quality wireless model. |
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Since the introduction of the new product, profits have been steadily declining. |
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Management believes that the accounting system is not accurately allocating costs to products, particularly because sales of the new product have been increasing. |
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Management has asked you to investigate the cost allocation problem. |
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You find that manufacturing overhead is currently assigned to products based on their direct labor costs. |
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For your investigation, you have data from last year. |
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Manufacturing overhead was $1,258,000 based on production of 350,000 wired mice and 94,000 wireless mice. |
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Direct labor and direct materials costs were as follows: |
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The Personnel Department at LastCall Enterprises handles many administrative tasks for the two divisions that make up LastCall: LaidBack and StressedOut. |
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LaidBack division manages the company’s traditional business line. |
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This business, although lucrative, is currently not growing. |
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StressedOut, on the other hand, is the company’s new business, which has experienced double-digit growth for each of the last three years. |
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The cost allocation system at LastCall allocates all corporate costs to the divisions based on a variety of cost allocation bases. Personnel costs are allocated based on the average number of employees in the two divisions. |
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There are two basic activities in the Personnel Department. |
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The first, which is called employee maintenance, manages employee records. |
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Virtually all of this activity occurs when employees are hired or leave the company. |
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The other activity is payroll, which is an ongoing activity and requires the same amount of work for each employee regardless of the employee’s salary. |
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Assorted data for LastCall for the last year follow: |
EZ-Seat, Inc., manufactures two types of reclining chairs, Standard and Ergo. |
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Ergo provides support for the body through a complex set of sensors and requires great care in manufacturing to avoid damage to the material and frame. |
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Standard is a conventional recliner, uses standard materials, and is simpler to manufacture. |
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EZ-Seat's results for the last fiscal year are shown in the following statement. |
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Huron Furniture is considering updating its cost system to an activity-based costing system and is interested in understanding the effects. |
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The company's cost accountant has identified three overhead cost pools along with appropriate cost drivers for each pool. |