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ACC561 Wiley Week 3 BE15-5 E16-1 E17-9

Price: $3.50


Question 1
In January, Reyes Tool & Die requisitions raw materials for production as follows:
Job 1 $900, Job 2 $1,200, Job 3 $700, and general factory use $600.

During January, time tickets show that the factory labor of $5,000 was used as follows: Job 1 $1,200,
Job 2 $1,600 Job 3 $1,400, and general factory use $800

Prepare the job cost sheets for each of the three jobs. (If answer is zero, please enter 0, do not leave any fields blank.)

Question 2
Doc Gibbs has prepared the following list of statements about process cost
accounting.

1. Process cost systems are used to apply costs to similar products that are mass produced
in a continuous fashion.
2. A process cost system is used when each finished unit is indistinguishable from another.
3. Companies that produce soft drinks, motion pictures, and computer chips would all
use process cost accounting.
4. In a process cost system, costs are tracked by individual jobs.
5. Job order costing and process costing track different manufacturing cost elements.
6. Both job order costing and process costing account for direct materials, direct labor,
and manufacturing overhead.
7. Costs flow through the accounts in the same basic way for both job order costing
and process costing.
8. In a process cost system, only one work in process account is used.
9. In a process cost system, costs are summarized in a job cost sheet.
10. In a process cost system, the unit cost is total manufacturing costs for the period divided
by the units produced during the period.

Question 3
Peter Catalano’s Verde Vineyards in Oakville, California produces three varieties
of wine: Merlot, Viognier, and Pinot Noir. His winemaster, Kyle Ward, has identified the
following activities as cost pools for accumulating overhead and assigning it to products.
1. Culling and replanting. Dead or overcrowded vines are culled, and new vines are
planted or relocated. (Separate vineyards by variety.)
2. Tying. The posts and wires are reset, and vines are tied to the wires for the dormant
season.
3. Trimming. At the end of the harvest the vines are cut and trimmed back in preparation
for the next season.
4. Spraying. The vines are sprayed with chemicals for protection against insects and fungi.
5. Harvesting. The grapes are hand-picked, placed in carts, and transported to the crushers.
6. Stemming and crushing. Cartfuls of bunches of grapes of each variety are separately
loaded into machines which remove stems and gently crush the grapes.
7. Pressing and filtering. The crushed grapes are transferred to presses which mechanically
remove the juices and filter out bulk and impurities.
8. Fermentation. The grape juice, by variety, is fermented in either stainless-steel tanks
or oak barrels.
9. Aging. The wines are aged in either stainless-steel tanks or oak barrels for one to
three years depending on variety.
10. Bottling and corking. Bottles are machine-filled and corked.
11. Labeling and boxing. Each bottle is labeled, as is each nine-bottle case, with the name
of the vintner, vintage, and variety.
12. Storing. Packaged and boxed bottles are stored awaiting shipment.
13. Shipping. The wine is shipped to distributors and private retailers.
14. Heating and air-conditioning of plant and offices.
15. Maintenance of buildings and equipment. Printing, repairs, replacements, and general
maintenance are performed in the off-season.

Instructions
For each of Verde’s fifteen activity cost pools, identify a probable cost driver that might
be used to assign overhead costs to its three wine varieties.

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