15 May 1. Exercise 22-1 Departmental expense allocations L.O. C1
Question
Managerial Accounting 1B
Financial and Managerial Accounting
Chapter 22
1. Exercise 22-1 Departmental expense allocations L.O. C1
| Won Han Co. has four departments: materials, personnel, manufacturing, and packaging. In a recent month, the four departments incurred three shared indirect expenses. The amounts of these indirect expenses and the bases used to allocate them follow. |
| Indirect Expense | Cost | Allocation Base | |
| Supervision | $ | 75,000 | Number of employees |
| Utilities | 60,000 | Square feet occupied | |
| Insurance | 16,500 | Value of assets in use | |
|
|
|
||
| Total | $ | 151,500 | |
|
|
|
||
|
|
| Departmental data for the company’s recent reporting period follow. |
| Department | Employees | Square Feet | Asset Values | ||||||
| Materials | 18 | 27,000 | $ | 6,000 | |||||
| Personnel | 6 | 4,500 | 1,200 | ||||||
| Manufacturing | 66 | 45,000 | 37,800 | ||||||
| Packaging | 30 | 13,500 | 15,000 | ||||||
|
|
|
|
|
||||||
| Total | 120 | 90,000 | $ | 60,000 | |||||
|
|
|
|
|
||||||
|
|
| (1) | Use this information to allocate each of the three indirect expenses across the four departments.(Omit the “$” & “%” signs in your response.) |
| (2) | Prepare a summary table that reports the indirect expenses assigned to each of the four departments.(Omit the “$” sign in your response.) |
2.
Exercise 22-12B Joint real estate costs assigned L.O. C4
| Tidy Home Properties is developing a subdivision that includes 300 home lots. The 225 lots in the Garden section are below a ridge and do not have views of the neighboring gardens and hills; the 75 lots in the Premier section offer unobstructed views. The expected selling price for each Garden lot is $50,000 and for each Premier lot is $100,000. The developer acquired the land for $2,500,000 and spent another $2,000,000 on street and utilities improvements. |
| Assign the joint land and improvement costs to the lots using the value basis of allocation and determine the average cost per lot. (Omit the “$” sign in your response.) |
Exercise 22-13B Joint product costs assigned L.O. C4
[The following information applies to the questions displayed below.]
| Pike Seafood Company purchases lobsters and processes them into tails and flakes. It sells the lobster tails for $20 per pound and the flakes for $15 per pound. On average, 100 pounds of lobster are processed into 57 pounds of tails and 24 pounds of flakes, with 19 pounds of waste. Assume that the company purchased 3,000 pounds of lobster for $6.00 per pound and processed the lobsters with an additional labor cost of $1,800. No materials or labor costs are assigned to the waste. The company sold 1,510 pounds of tails and 710 pounds of flakes. |
3.Exercise 22-13B Part 1
| (1) | What is the allocated cost of the sold items? The company allocates joint costs on a value basis.(Round your cost per pound to 2 decimal places. Omit the “$” sign in your response.) |
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.