Entries and Schedules for Unfinished Jobs and Completed Jobs

Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations:

1. Materials purchased on account, $3,180.
2. Materials requisitioned and factory labor used:
   

   Job No.	Materials		Factory Labor
   101	$2,610		$2,520
   102	3,180		3,400
   103	2,110		1,660
   104	7,150		6,250
   105	4,540		4,760
   106	3,310		3,020
   For general factory use	890		3,730

3. Factory overhead costs incurred on account, $4,990.
4. Depreciation of machinery and equipment, $1,790.
5. The factory overhead rate is $50 per machine hour. Machine hours used:
   

   Job No.	Machine Hours
   101		24
   102		18
   103		27
   104		73
   105		21
   106		22
   Total		185

6. Jobs completed: 101, 102, 103, and 105.
7. Jobs were shipped and customers were billed as follows: Job 101, $7,600; Job 102, $8,980; Job 105, $14,850.

Required:

1. Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.

2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month.

3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.

4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.

Entries and Schedules for Unfinished Jobs and Completed Jobs

Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations:

1. Materials purchased on account, $2,080.
2. Materials requisitioned and factory labor used:
   

   Job No.	Materials		Factory Labor
   101	$1,800		$2,940
   102	2,200		3,970
   103	1,460		1,940
   104	4,930		7,290
   105	3,130		5,560
   106	2,290		3,530
   For general factory use	610		4,350

3. Factory overhead costs incurred on account, $3,440.
4. Depreciation of machinery and equipment, $2,090.
5. The factory overhead rate is $40 per machine hour. Machine hours used:
   

   Job No.	Machine Hours
   101		43
   102		18
   103		27
   104		70
   105		45
   106		29
   Total		232

6. Jobs completed: 101, 102, 103, and 105.
7. Jobs were shipped and customers were billed as follows: Job 101, $7,750; Job 102, $8,270; Job 105, $12,990.

Required:

1. Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.

2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month.

3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.

4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.

Cholesterol levels are a major concern to health insurance providers. Cholesterol levels in U.S. adults average 215 with a standard deviation of 30. If the cholesterol levels of a sample of 42 U.S. adults is taken, what is the probability that the mean cholesterol level of the sample 1) Will be less than 200? 2) Will be between 205 and 225? 3) Will be greater than 220?

2. Suppose that 36% of the clients of a company use smart phones. Draw a random sample of 200 clients, what is the probability that the sample proportion is 1) Less than 0.28? 2) Greater than 0.42?

3. A bottler wishes to ensure that the average of 16 ounces of fruit juice is used to fill each bottle. In order to analyze the accuracy of the bottling process, he takes a random sample of 48 bottles. The mean weight of the juice in the sample is 15.8 ounces. Assume the population standard deviation is 0.8 ounce. Test his concern at the 5% significance level.

4. In a sample of 1022 U.S. adults, 73% say that they are not happy with the current investment climate. Is there evidence that the percentage has significantly decreased from the 74% reported previously? Do the test at the 1% level.

5. The percentage of bills being paid by Medicare has been 31%. An examination of 8368 recent bills reveals that 32% of these bills are being paid by Medicare. Is this evidence of a change in the percentage of bills being paid by Medicare? Do the test at the 10% level.

Companies sometimes offer their customers a discount on their purchase if they pay early. What is the benefit for the company to take a reduced amount on these purchases and from the customer’s point of view is it beneficial for them to take the discount. What factors does the customer have to consider when deciding to take the discount?

Explain in technical details why the Lagrange multiplier is crucially used in analysing the theory of the consumer .Further as a managerial economics student ,show how you can apply this technique to advise your company to make sales without making loses and affecting your customers negatively

1. Under absorption costing, a company had the following unit costs when 8,000 units were

             produced.        

Compute the total production cost per unit under variable costing if 25,000 units had been produced.

A) $31.75

B) $27.25

C) $26.25

D) $24.25

E) $17.50

2.         When evaluating a special order, management should:

A) Only accept the order if the incremental revenue exceeds all product costs.

B) Only accept the order if the incremental revenue exceeds fixed product costs.

C) Only accept the order if the incremental revenue exceeds total variable product costs.

D) Only accept the order if the incremental revenue exceeds full absorption product costs.

E) Only accept the order if the incremental revenue exceeds regular sales revenue.

3.       Which of the following best describes costs assigned to the product under the absorption

             costing method?

Direct labor (DL)

Direct materials (DM)

Variable selling and administrative (VSA)

Variable manufacturing overhead (VOH)

Fixed selling and administrative (FSA)

Fixed manufacturing overhead (FOH)

A) DL, DM, VSA, and VOH.

B) DL, DM, and VOH.

C) DL, DM, VOH, and FOH.

D) DL and DM.

E) DL, DM, FSA, and FOH.

4.       Which of the following best describes costs assigned to the product under the variable

             costing method?

Direct labor (DL)

Direct materials (DM)

Variable selling and administrative (VSA)

Variable manufacturing overhead (VOH)

Fixed selling and administrative (FSA)

Fixed manufacturing overhead (FOH)

A) DL, DM, VSA, and VOH.

B) DL, DM, and VOH.

C) DL, DM, VOH, and FOH.

D) DL and DM.

E) DL, DM, FSA, and FOH.

12.       Howley Company has the following information for April:

                        Sales                            $912,000

                        VC of goods sold           474,000

                        FC – mfg.                          82,000

                        VC – selling & adm.       238,000

                        FC – selling & adm.          54,700

a, Operating Income for Howley during the month of April.

Create the 2018 budget for Buy-Right Bike Store (BRBS). Add a worksheet to your Project Excel workbook for BRBC Budgeted Income Statement and create the 2018 budget using the following information.

Budgeted Sales of Bike C: Online 75,000 bikes; instore 5,000 bikes.

Bike C is purchased from Built-Right Bike Company, a sister company in the Biltmore Bicycle Corporation (BMBC), for $52 and is sold for $104.

Inventory:

Beginning inventory:      $    52,000

Purchases                            4,108,000

Sales                                                  ?

Ending Inventory             $     52,000

Employees:

Managerial Staff:

Manager: 1 FTE, $45,000 annual salary plus 20% benefits

Bookkeeper: 1 FTE, $40,000 annual salary plus 20% benefits

Purchasing & Receiving Supervisor: 1 FTE, $35,000 annual salary plus 20% benefits

Other staff:

Warehouse: 2.5 FTEs make $15 per hour plus 17% benefits

Online sales staff: 2 FTEs, $15 per hour plus 17% benefits (no commission)

Store Hours:

Monday – Saturday 10:00 am – 6:00 pm

2 sales clerks work from 10-3 M-F

3 sales clerks work from 3-6 M-F

4 sales clerks work 10-6 on Saturdays

Sales clerks earn $15 per hour plus 17% benefits

Instore sales staff share commission equal to 10% of instore sales.

Budgeted Utility cost: $13,200

Budgeted Marketing Cost: $175,000

Contributions & community service: 10% of instore revenue

Other costs (includes depreciation, insurance, etc): $1,300,000

Income tax 29% of Net Revenue