Write a business report describing budgeting
Managerial Accounting
Job costing
A. Create a spreadsheet solution to the following problem. Follow the template provided.
Play the Job cost podcasts and work through the example problem in those podcasts.
Design your spreadsheet to meet the assignment requirements set out above. In particular, check the spreadsheet requirements and the spreadsheet advice PDF.
Reconstructing accounts
Ledger balances:
$
Materials Control 31/8/X4
17,600
Work-in-Process 1/8/X4
5,460
Finished Goods 1/8/X4
7,600
Accounts Payable 1/8/X4
1,290
Overhead is allocated by using a predetermined rate that is set at the beginning of each year by forecasting the years overhead and using forecast direct labour hours as a cost driver All factory workers receive the same rate of pay
An interview with the factory foreman revealed the following additional information:
1 Accounts Payable are for direct materials only. The balance on 31 August was $550
2 Payments for Accounts Payable made during August were $5,700
3 A stocktake after 0. Bese’s autopsy revealed only one unfinished job in the factory
4 Source documents showed that the one unfinished job had direct labour $800
5 The direct labour hours in the unfinished job was 300 hours
6 The direct material in the unfinished job was $12,000
7 The finished goods inventory as at 31 August was $47,000
8 The budget for 20X4 called for total direct labour hours of 3,000 hours
$ Budgeted factory overhead is $12,000
10 Jobs sold during August realised 524,000
11 Direct labour hours worked during August totalled 3,700 hours
12 Finished jobs are priced at a percentage mark-up on manufacturing cost. 60%
Required:
Given this incomplete information, complete the template below and calculate the beginning balance of the Direct Materials Control account. If necessary, round to whole dollars.
B. Distinguish between job costing and process costing. Give your own examples.
QUESTION 2 Process costing
Prepare a spreadsheet to solve the following process costing problem.
Review the four process costing videos provided in Interact Resources. Note that in the situation below there are two production departments.
Process Costing – Weighted Average
DATA INPUT
Barcelona Ltd. produces a single lacquer paint which passes through two production departments. The following information concerns the first of those production departments. Direct materials are added at the beginning of the production process and conversion costs are incurred uniformly throughout the process. Total conversion costs are computed as direct labour costs, plus 20% of direct labour costs, for the allocation of overhead costs
The following information is available for May: Opening Work in Process:
Number of units
4,500
Degree of completion
45%
Material costs
$17,000
Conversion costs
$36,000
May Production:
Units started
33,400
Units completed and transferred to Process 2
27,000
Current material costs
$78,000
Current direct labour costs
$125,000
Closing Work In Proc
