Question Managerial Accounting 1B

29 Jun Question Managerial Accounting 1B

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