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Group Assignment 1_T1 2025

The document outlines the requirements for a group assignment in Managerial Accounting for Trimester 1, 2025, detailing submission guidelines and marking criteria. It includes exercises related to cost of goods manufactured, cost of goods sold, and income statements for two companies, WSU Supplies and K&K, along with a process costing exercise for ABC Company. Each exercise requires calculations and journal entries based on provided financial data.

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6 views

Group Assignment 1_T1 2025

The document outlines the requirements for a group assignment in Managerial Accounting for Trimester 1, 2025, detailing submission guidelines and marking criteria. It includes exercises related to cost of goods manufactured, cost of goods sold, and income statements for two companies, WSU Supplies and K&K, along with a process costing exercise for ABC Company. Each exercise requires calculations and journal entries based on provided financial data.

Uploaded by

dieuhien9944
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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ACC202 - MANAGERIAL ACCOUNTING

TRIMESTER 1 2025

GROUP ASSIGNMENT 01
DATE Sunday, 16 Feb 2025
TIME One day

MARKS 100 marks


WEIGHT 5%

Important:
• Fill in Peer evaluation after you submit the 9ile
• ONE 9ile submission ONLY for EACH GROUP
• File submission is PDF format, attach the Group cover sheet, submit it to Canvas.
• Late submissions will receive zero.
• Groups that are found copying each other will receive zero for both groups.
Exercise 1 (30 marks):
WSU Supplies manufactures gear for hunting and camping. The company shows the
following data related to its December 31, 2025 9iscal year end:

Raw materials inventory, January 1, 2025 $14,000


Raw materials inventory, December 31, 2025 17,000
Work in process inventory, January 1, 2025 31,000
Work in process inventory, December 31, 2025 20,000
Finished goods inventory, January 1, 2025 84,000
Finished goods inventory, December 31, 2025 68,000
Direct labour 275,000
Factory supervisor's wages 64,000
Company president's salary 120,000
Purchases of raw materials 425,000
Depreciation (60% factory, 40% of9ice) 240,000
Property taxes (80% factory, 20% of9ice) 20,000
Sales commissions 100,000
Repairs and maintenance (100% relate to the factory) 15,000
Utilities expense (90% factory, 10% of9ice) 30,000
The company applies overhead costs to jobs on the basis of direct
labour hours
Predetermine overhead rate $13 per hour
Direct labour workforce to work during the year 20,000 hours
Sales revenue 2,050,000
Advertising 215,000

* Assume all raw materials used in produc2on were direct materials.

Required: Based on the information above:


a.) Prepare a schedule of cost of goods manufactured.
b.) Prepare a schedule of cost of goods sold.
c.) Prepare an income statement (assuming a tax rate of 20%.)
Exercise 2 (30 marks):
K&K manufactures and installs custom shingles for use on damaged roofs of
residential houses and apartments. The company uses a specialized manufacturing process
to ensure the replacement shingles are an exact match with the existing roof. The company
uses a job order costing system to apply manufacturing overhead on the basis of direct
labour cost. The company estimates that during the next year, it will incur $70,000 in
overhead costs and will pay $140,000 in direct labour costs. During the year, the following
transactions occurred:

a.) Purchased $180,000 of direct materials on account.


b.) Purchased $5,000 of supplies on account. (The supplies consisted of glue and
cleaning
supplies.)
c.) Requisitioned $170,000 of direct materials and $4,500 of supplies for use in
production.
d.) Incurred employee costs:
i. Direct labour $150,000
ii. Indirect labour 40,000
iii. Administrative salaries 190,000
iv. Sales salaries 30,000
v. Sales commissions 90,000
e.) Advertised on local television: $5,000
f.) Rent: $12,000. 40% of the space related to sales of9ices, 60% was a shop used in
production of roo9ing materials.
g.) Depreciation: $25,000. 70% relates to roo9ing equipment, 30% relates to of9ice
equipment.
h.) Insurance expired: $15,000. 90% relates to the factory, the remainder relates to
insurance on the of9ice equipment.
i.) Manufacturing overhead costs were applied to production.
j.) Goods costing $375,000 were completed.
k.) The company had sales on account of $800,000. According to cost data, the jobs
cost $350,000.
Required:
a.) For items a.)-k.) above, record journal entries. Unless otherwise noted, assume all
transactions were on account.
b.) Was overhead overapplied or underapplied for the period? By how much?
c.) Record a journal entry to close overhead to cost of goods sold.
d.) Based on the information above, prepare an income statement for the company –
assume a 20% tax rate.
Exercise 30 (4 marks):
ABC Company manufactures one product that goes through one processing
department called Mixing. All raw materials are introduced at the start of work in the
Mixing Department. The company uses the weighted-average method of process costing. Its
Work in Process T-account for the Mixing Department for June follows (all forthcoming
questions pertain to June):

Work in Process—Mixing Department


June 1 balance 28,000 Completed and transferred ?
to Finished Goods.
Materials 120,000
Direct labor 79,500
Overhead 97,000

The June 1 work in process inventory includes 5,000 units with $16,000 in materials cost
and $12,000 in conversion cost. The June 1 work in process inventory was 100% complete
with respect to materials and 50% complete with respect to conversion. During June,
37,500 units were started into production. The June 30 work in process inventory consisted
of 8,000 units 100% complete with respect to materials and 40% complete with respect to
conversion.

Required:
1. How many units were completed and transferred to 9inished goods?
2. Compute the equivalent units of production for materials.
3. Compute the equivalent units of production for conversion.
4. What is the cost of beginning work in process inventory plus the cost added during the
period for materials?
5. What is the cost of beginning work in process inventory plus the cost added during the
period for conversion?
6. What is the cost per equivalent unit for materials?
7. What is the cost per equivalent unit for conversion?
8. What is the cost of ending work in process inventory for materials?
9. What is the cost of ending work in process inventory for conversion?
10. What is the cost of materials transferred to 9inished goods?
11. What is the amount of conversion cost transferred to 9inished goods?
12. What is the total cost to be accounted for? What is the total cost accounted for?

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