I. Cost analysis and identification.
Georgia Pacific, a manufacturer, incurs the following costs:
a. Classify each cost as either a product or a period cost. If a product cost, identify it as a rime or a conversion cost.
b. Classify each product cost as either a direct cost or an indirect cost using the product as the cost object.
II. Manufacturing statement preparation
Given the following selected account balances of Randa Company, prepare its manufacturing statement for the year ended on December 31, 2013. Include a listing of the individual overhead account balances in this statement.
III. Income Statement Preparation
Use the information from problem II above to prepare an income statement for Randa Company (a manufacturer). Assume that its cost of goods manufactured is $546,390.
IV. Inventory computation and reporting
Shown here are annual financial data at December 31, 2013, taken from two different
companies. Pinnacle Retail, Slope Board Manufacturing
V. Analysis of cost flows
As of the end of June, the job cost sheets at Racing Wheels, Inc. show the following total costs accumulated on three custom jobs:
VI. Cost flows in a job order cost system
The following information is available for Lock-Down Company, which produces special-order security products and uses a job order cost accounting system.
VII. Journal Entries for Materials, Labor, and Overhead
Use information from Problem VI to prepare journal entries for the following events for the month of May. Remember that a journal entry must debit at least one account and credit at least one account. Please use proper account titles.
VIII. Factory Overhead Calculation, Allocation, and Analysis
Red Wing Company applies factory overhead based on direct labor costs. The company incurred the following costs during 2013: direct materials costs, $637,500; direct labor costs, $2,500,000; and factory overhead costs applied, $1,000,000.
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