Assign 2 Fall 2004 by yCtutf

VIEWS: 4 PAGES: 1

									 ACCT 202 PRINCIPLES OF MANAGERIAL ACCOUNTING SECTIONS 601 AND 602 -FALL 2004
                  -DR. FRED BARBEE HOMEWORK ASSIGNMENT #2

Due: September 15, 2004

Benson Company produces unique metal sculptures. On January 1, 2003, there were
three jobs in process with the following costs:

                                           JOB 435 JOB 436 JOB 437 Direct
         Materials $100 $340 $780 Direct Labor 350 700 1,050 Applied
         Overhead 420 840 1,260 Total $870 $1,880 $3,090

During the month of January, two more jobs were started, Jobs 438 and 439.
Materials and labor costs incurred by each job in January are as follows:

                                     MATERIALS DIRECT LABOR
                     Job 435 $400 $300 Job 436 150 200 Job
                     437 260 150 Job 438 800 650 Job 439 760
                     700

Jobs 437 and 438 were completed and sold by January 31, 2003.

REQUIRED:

1.     1.     If overhead is applied on the basis of direct labor dollars, what is the
overhead rate?
2.     2.     Prepare simple job-order cost sheets for each of the five jobs in process
during January.
3.     3.     What is the ending balance of Work in Process on January 31? What is
the Cost of Goods Sold in January?
4.     4.     Suppose that Benson Company prices its jobs at cost plus fifty percent.
In addition, during January, marketing and administrative costs of $1,200 were incurred.
Prepare an income statement for the month of January 2003.

								
To top