Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 1, Problem 1.13E
Keisha Tombert, the bookkeeper for Washington Consulting, a political consulting firm, has recently completed a
Listed below are the costs her firm incurred for the month ended August 31, 2017.
| Supplies used on consulting contracts | $ 1,700 |
| Supplies used in the administrative offices | 1,500 |
| 900 | |
| Depreciation used on administrative office equipment | 1,050 |
| Salaries of professionals working on contracts | 15,600 |
| Salaries of administrative office personnel | 7,700 |
| Janitorial services for professional offices | 700 |
| Janitorial services for administrative offices | 500 |
| Insurance on contract operations | 800 |
| Insurance on administrative operations | 900 |
| Utilities for contract operations | 1,400 |
| Utilities for administrative offices | 1,300 |
Instructions
(a) Prepare a schedule of cost of contract services performed (similar to a cost of goods manufactured schedule) for the month.
(b) For those costs not included in (a), explain how they would be classified and reported in the financial statements.
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Case Construction Company, a three-year-old business, provides contracting and construction services to a variety of clients. Given
that each construction job is different from any other, company accountant Susan Kalagnanam decided that it was best to use a job-
order costing system to allocate costs to the different jobs. She decided to use construction labour-hours as the basis for overhead
allocation. In December 2020, she estimated the following amounts for the year 2021:
Direct materials
Construction labour.
Overhead
Construction labour-hours
Kalagnanam recorded the following for the first quarter of 2021 for the three jobs that the company started and completed during the
quarter:
Direct materials
$13,395,200
8,165,000
8,847,700
460,000
Construction labour-hours
$753,500
School Residential Cinema
$904, 200 $1,356,300
36,800
16,100
62,100
Required:
1. Compute the cost of each job using the current system of cost allocation. (Round intermediate calculations to 2 decimal places.)
Case Construction Company, a three-year-old business, provides contracting and construction services to a variety of clients. Given
that each construction job is different from any other, company accountant Susan Kalagnanam decided that it was best to use a job-
order costing system to allocate costs to the different jobs. She decided to use construction labour-hours as the basis for overhead
allocation. In December 2020, she estimated the following amounts for the year 2021:
Direct materials
Construction labour
Overhead
Construction labour-hours
Kalagnanam recorded the following for the first quarter of 2021 for the three jobs that the company started and completed during the
quarter:
Direct materials
Construction labour-hours
$13,395,200
8,165,000
8,847,700
460,000
Direct Material
Construction Labour
Overhead
Total cost
$
$753,500
School Residential
$904,200
36,800
62,100
Required:
1. Compute the cost of each job using the current system of cost allocation. (Round intermediate…
When Diane Buswell, controller for Current Designs, reviewed the accounting records for a recent period, she noted the cost items
and amounts shown below (amounts are assumed). Enter the amount for each item in the appropriate cost category. Then sum the
amounts in each cost category column.
Payee
Winona Agency
Bill Johnson (sales manager)
Xcel Energy
Winona Printing
Jim Kaiser (sales representative)
Dave Thill (factory manager)
Dana Schultz (kavak assembler)
Purpose
Property insurance for the factory
Payroll check-payment to sales manager
Electricity for factory
Price lists for salespeople
Sales commissions
Payroll check-payment to factory manager
Payroll check-payment to kayak assembler
Amount
2,740
1,450
390
74
1,090
1,250
668
$
Direct
Materials
Ih
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Chapter 1 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 1 - Prob. 1QCh. 1 - Distinguish between managerial and financial...Ch. 1 - How do the content of reports and the verification...Ch. 1 - Prob. 4QCh. 1 - Decision-making is managements most important...Ch. 1 - Explain the primary difference between line...Ch. 1 - Prob. 7QCh. 1 - Prob. 8QCh. 1 - How are manufacturing costs classified?Ch. 1 - Mel Finney claims that the distinction between...
Ch. 1 - Tina Burke is confused about the differences...Ch. 1 - Identify the differences in the cost of goods sold...Ch. 1 - The determination of the cost of goods...Ch. 1 - Sealy Company has beginning raw materials...Ch. 1 - Tate Inc. has beginning work in process 26,000,...Ch. 1 - Using the data in Question 15, what are (a) the...Ch. 1 - In what order should manufacturing inventories be...Ch. 1 - How does the output of manufacturing operations...Ch. 1 - Discuss whether the product costing techniques...Ch. 1 - What is the value chain? Describe, in sequence,...Ch. 1 - What is an enterprise resource planning (HRP)...Ch. 1 - Why is product quality important for companies...Ch. 1 - Explain what is meant by balanced in the balanced...Ch. 1 - In what ways can the budgeting process create...Ch. 1 - What new rules were enacted under the...Ch. 1 - What is activity-based costing, and what are its...Ch. 1 - Distinguish between managerial and financial...Ch. 1 - Prob. 1.2BECh. 1 - Determine whether each of the following costs...Ch. 1 - Prob. 1.4BECh. 1 - Identify whether each of the following costs...Ch. 1 - Presented below are Rook Companys monthly...Ch. 1 - Francum Company has the following data: direct...Ch. 1 - In alphabetical order below are current asset...Ch. 1 - Presented below are incomplete manufacturing cost...Ch. 1 - Use the same data from BE1-9 above and the data...Ch. 1 - Prob. 1.11BECh. 1 - Prob. 1.1DICh. 1 - Identify managerial cost classifications. (LO 2),...Ch. 1 - The following information is available for Tomlin...Ch. 1 - Match the descriptions that follow with the...Ch. 1 - Justin Bleeber has prepared the following list of...Ch. 1 - Presented below is a list of costs and expenses...Ch. 1 - Trak Corporation incurred the following costs...Ch. 1 - Determine the total amount of various types of...Ch. 1 - Gala Company is a manufacturer of laptop...Ch. 1 - Prob. 1.6ECh. 1 - National Express reports the following costs and...Ch. 1 - Lopez Corporation incurred the following costs...Ch. 1 - An incomplete cost of goods manufactured schedule...Ch. 1 - Manufacturing cost data for Copa Company are...Ch. 1 - Incomplete manufacturing cost data for Horizon...Ch. 1 - Cepeda Corporation has the following cost records...Ch. 1 - Keisha Tombert, the bookkeeper for Washington...Ch. 1 - The following information is available for Aikman...Ch. 1 - University Company produces collegiate apparel....Ch. 1 - An analysis of the accounts of Roberts Company...Ch. 1 - McQueen Motor Company manufactures automobiles....Ch. 1 - The following is a list of terms related to...Ch. 1 - Prob. 1.1APCh. 1 - Bell Company, a manufacturer of audio systems,...Ch. 1 - Incomplete manufacturing costs, expenses, and...Ch. 1 - Prepare a cost of goods manufactured schedule, a...Ch. 1 - Empire Company is a manufacturer of smart phones....Ch. 1 - Prob. 1.1WPCh. 1 - Prob. 1.1BYPCh. 1 - Tenrack is a fairly large manufacturing company...Ch. 1 - Prob. 1.4BYPCh. 1 - The primary purpose of managerial accounting is to...Ch. 1 - As noted in this chapter, because of global...
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