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Assignment #1 − Job Order Costing
Question [Chapters 2 and 5 ] ( 20 marks) Analysis of Cost Flows and Inventories under Job-Order Costing Quickmix Ltd. manufactures electric mixers and chopping tools. A job-order costing system is used, since the products are manufactured in batches rather than on a continuous basis. The company started operations on January 1 , 2024. Operating activities during the first 11 months of the year (through November 30) resulted in the following balances in selected accounts: Raw Materials# Manufacturing Overhead
Balance 36,000 2,260,000 *?
Balance? Work-in-Process Cost of Goods Sold Balance 1,200,000 Balance 14,200, Finished Goods Balance 2,785, # The raw materials account includes (both) direct materials and indirect materials.
* This figure represents the debits to the manufacturing overhead account for the first eleven
months of the year. The following additional information is available on the company: a. The work-in-process inventory at November 30 consisted of two jobs : Total Cost as of Job No. Units Item November 30 5011 ............ 48,000 Professional mixers $700, 6011 ............ 39,000 Base mixers 500, $1,200, b. The finished goods inventory at November 30 consisted of five separate items in stock : Items Quantity and Unit Cost Total Cost Professional mixers ........ 4 ,000 units at $2 0 each $ 80 , Premium mixers ............. 115,000 units at $17 each 1,955, Brass choppers .............. 10,000 units at $14 each 140, Steel choppers ............... 5,000 units at $16 each 80, Mixer utensil set ............. 100,000 units at $5 each 500, $2,7 5 5,
j. Finished products were shipped to customers during December as follows : Items Quantity Professional mixers ........................................ 13 ,000 units Premium mixers ............................................. 32,000 units Base mixers ................................................... 20,000 units Costco mixers ................................................ 22,000 units Brass choppers ................................................ 5,000 units Steel choppers ............................................... 10,000 units Mixer utensil set ............................................. 26,000 units Required
- Determine the amount of under/over-applied manufacturing overhead for the year 2024 and indicate whether it is under-applied or over-applied. (6 marks)
- (i) In general, what is the appropriate accounting treatment (for management accounting purposes, not IFRS) for under / over-applied overhead (at December 31, 20 24 ). ( 2 marks) (ii) For Quickmix, discuss the appropriate accounting treatment (for management accounting purposes, not IFRS) for under / over-applied overhead (at December 31, 202 4 )? (2 marks)
- Determine the dollar balance in the work-in-process inventory account as of December 31, 2024. Show all computations. [Ignore any under / over-applied overhead.] ( 5 marks)
- For the Professional mixers, determine the dollar balance in the finished goods inventory account as of December 31, 2024. Assume a FIFO (first-in-first-out) flow of units. Show all computations. [Ignore any under / over-applied overhead.] ( 5 marks)
294 – ASSIGNMENT #1 NAME (Last, First): Student No.: Question [ 20 marks]
1. Determine the amount of under / over-applied manufacturing overhead for the year 2024 and
indicate whether it is under-applied or over-applied. (6 marks)
Type your answer here. [Delete “type your answer here…” and type your
answer in the space between the required parts.]
- (i) In general, what is the appropriate accounting treatment (for management accounting purposes, not IFRS) for under / over-applied overhead (at December 31, 20 24 ). ( 2 marks) (ii) For Quickmix, discuss the appropriate accounting treatment (for management accounting purposes, not IFRS) for under / over-applied overhead (at December 31, 202 4 )? ( 2 marks)
- Determine the dollar balance in the work-in-process inventory account as of December 31, 2024. Show all computations. [Ignore any under / over-applied overhead.] ( 5 marks)
- For the Professional mixers, determine the dollar balance in the finished goods inventory account as of December 31, 2024. Assume a FIFO (first-in-first-out) flow of units. Show all computations. [Ignore any under / over-applied overhead.] (5 marks)
