ACC 206: Management Accounting Problems � Cost Flows, Overhead Application, and Cost-Volume-Profit Analysis

A case study exploring management accounting issues such as cost flows, overhead, and CVP analysis.

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ACC 206: Management Accounting ProblemsCost Flows, Overhead Application, and Cost-Volume-Profit AnalysisChapter 4 and 5 ProblemsPlease complete the following 7 exercises below in either Excel or a word document (but must be singledocument). You must show your work where appropriate (leaving the calculations within Excel cells isacceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button.Chapter 4 Exercise 33.Cost flows and overhead applicationCleveland Metals uses a job cost system and applies factory overhead to production at a predetermined rate of180% of direct labor cost. Data pertaining to recent operations follow.Job no. 636 was the only job in process on January 1 of the current year. The Work in Process accountcontained a $24,600 balance on this date.Jobs no. 637, 638, and 639 were started during January.Total direct material requisitions and direct labor incurred during January amounted to $89,200 and$114,500, respectively.The only job that remained in process on January 31 was job no. 638, with costs of $15,000 for directmaterials and $20,000 for direct labor.a.Compute the total cost of the work in process inventory on January 31.total cost of WIP = 15000+20000+1.8*20000= 71000b.Compute the cost of jobs completed during January, and present the proper journal entry to reflect jobcompletion.total = 89200 + 2.8*114500 + 24600= 434,400Completed = 434400-71000 = 363,400Job Completion = $363,400Chapter 4 Exercise 77.Overhead application: Working backwardThe Towson Manufacturing Corporation applies overhead on the basis of machine hours. The followingdivisional information is presented for your review:DivisionADivision BActual machine hours22,50017,200 a=g/d

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