1. Entries for Costs in a Job Order Cost System

   Munson Co. uses a job order cost system. The following data summarize the operations related to production for July:

   1. Materials purchased on account, $732,780
   2. Materials requisitioned, $615,540, of which $80,020 was for general factory use
   3. Factory labor used, $754,760, of which $143,400 was indirect
   4. Other costs incurred on account for factory overhead, $175,870; selling expenses, $271,130; and administrative expenses, $161,210
   5. Prepaid expenses expired for factory overhead, $33,710; for selling expenses, $28,580; and for administrative expenses, $20,520
   6. Depreciation of office building was $98,190; of office equipment, $49,830; and of factory equipment, $33,710
   7. Factory overhead costs applied to jobs, $417,680
   8. Jobs completed, $967,270
   9. Cost of goods sold, $937,960

   Required:

   Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank.

   a. Materials purchased on account, $732,780.

   Entry	Description	Debit	Credit
   a.

   b. Materials requisitioned, $615,540, of which $80,020 was for general factory use.

   Entry	Description	Debit	Credit
   b.

   c. Factory labor used, $754,760, of which $143,400 was indirect.

   Entry	Description	Debit	Credit
   c.

   d. Other costs incurred on account for factory overhead, $175,870; selling expenses, $271,130; and administrative expenses, $161,210.

   Entry	Description	Debit	Credit
   d.

   e. Prepaid expenses expired for factory overhead, $33,710; for selling expenses, $28,580; and for administrative expenses, $20,520.

   Entry	Description	Debit	Credit
   e.

   f. Depreciation of office building was $98,190; of office equipment, $49,830; and of factory equipment, $33,710.

   Entry	Description	Debit	Credit
   f.

   g. Factory overhead costs applied to jobs, $417,680.

   Entry	Description	Debit	Credit
   g.

   h. Jobs completed, $967,270.

   Entry	Description	Debit	Credit
   h.

   i. Cost of goods sold, $937,960.

   Entry	Description	Debit	Credit
   i.

​(Cost of trade credit​) Calculate the effective cost of the following trade credit terms when payment is made on the net due date. Use approximate​ cost-of-credit formula. Note​: Assume a​ 30-day month and​ 360-day year. a. 2​/5​, net 45 b. 3​/10​, net 30 c. 4​/10​, net 60 d. 2​/10​, net 60 a. When payment is made on the net due​ date, the APR of the credit terms of 2​/5​, net 45 is nothing​%. ​(Round to two decimal​ places.) b. When payment is made on the net due​ date, the APR of the credit terms of 3​/10​, net 30 is nothing​%. ​(Round to two decimal​ places.) c. When payment is made on the net due​ date, the APR of the credit terms of 4​/10​, net 60 is nothing​%. ​(Round to two decimal​ places.) d. When payment is made on the net due​ date, the APR of the credit terms of 2​/10​, net 60 is nothing​%. ​(Round to two decimal​ places.)

​(Cost of trade credit​) Calculate the effective cost of the following trade credit terms when payment is made on the net due date. Use approximate​ cost-of-credit formula. Note​: Assume a​ 30-day month and​ 360-day year. a. 2​/10​, net 30 b. 3​/15​, net 30 c. 3​/15​, net 45 d. 2​/15​, net 60 a. When payment is made on the net due​ date, the APR of the credit terms of 2​/10​, net 30 is nothing​%. ​(Round to two decimal​ places.) b. When payment is made on the net due​ date, the APR of the credit terms of 3​/15​, net 30 is nothing​%. ​(Round to two decimal​ places.) c. When payment is made on the net due​ date, the APR of the credit terms of 3​/15​, net 45 is nothing​%. ​(Round to two decimal​ places.) d. When payment is made on the net due​ date, the APR of the credit terms of 2​/15​, net 60 is nothing​%. ​(Round to two decimal​ places.) Enter your answer in each of the answer boxes.

Discuss the impact of depreciation cost in cost per unit generation. Provide FOUR (4) items in a coal power plant that incorporate the component of this cost.

Briefly describe the typical average cost curve and the marginal cost curves most often faced by monopolists.

Briefly explain how a natural monopoly arises.

X Company uses a plantwide overhead allocation system, with direct labor cost as the cost driver. Budgeted overhead for the year is $867,000. The following annual budgeted and actual information is available for the only three products that it produces - X, Y, Z:

How much overhead was allocated to Product Z [round the overhead rate to two decimal places]?

A plant manager considers that operational cost per hour of five alternative machines. The cost per hour is sensitive to three potential weather conditions: cold, mild, and warm. The following table represents the operational cost per hour for each alternative-state of nature combination.

The EVPI is .

Entries for Costs in a Job Order Cost System

Munson Co. uses a job order cost system. The following data summarize the operations related to production for July:

1. Materials purchased on account, $496,630
2. Materials requisitioned, $417,170, of which $54,230 was for general factory use
3. Factory labor used, $511,530, of which $97,190 was indirect
4. Other costs incurred on account for factory overhead, $119,190; selling expenses, $183,750; and administrative expenses, $109,260
5. Prepaid expenses expired for factory overhead, $22,840; for selling expenses, $19,370; and for administrative expenses, $13,910
6. Depreciation of office building was $66,550; of office equipment, $33,770; and of factory equipment, $22,840
7. Factory overhead costs applied to jobs, $283,080
8. Jobs completed, $655,550
9. Cost of goods sold, $635,690

Required:

Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank.

a. Materials purchased on account, $496,630.

b. Materials requisitioned, $417,170, of which $54,230 was for general factory use.

c. Factory labor used, $511,530, of which $97,190 was indirect.

d. Other costs incurred on account for factory overhead, $119,190; selling expenses, $183,750; and administrative expenses, $109,260.

e. Prepaid expenses expired for factory overhead, $22,840; for selling expenses, $19,370; and for administrative expenses, $13,910.

f. Depreciation of office building was $66,550; of office equipment, $33,770; and of factory equipment, $22,840.

g. Factory overhead costs applied to jobs, $283,080.

h. Jobs completed, $655,550.

i. Cost of goods sold, $635,690.

A company located on the sea has the following cost sheet:
Cost per unit GH₵
Raw Materials 60
Direct Labour 20
Overheads       40
Total Cost      120
Profit             20
Selling Price 140
The following is also made available
• Average raw material in stock is equivalent to 30days
• Average material in process is 15 days
• Credit all owned by suppliers is 30days
• Time lag in payment of wages is 10 days
• Time lag in payment of overheads is 30 days
• 25% of sales are on cash basis
• Credit allowed to debtors is 60 days
• The company wishes to keep cash amounting to GH₵120,000
• Average finished goods in stock is 30 days

Required:
As a management consultant, you have been contacted to prepare a statement to be presented to the Board of Directors showing the working capital required to finance 70,000 units of output. Assume 365 days in a year.