Acc561 Introduction to Management Accounting: Week 3 Individual Assignment (BE15-5, BE16-1, E17-9)
Acc561 Introduction to Management Accounting Week 3 Individual Assignment Exercise (BE15-5, BE16-1, E17-9) BE15-5 Data pertaining to job cost sheets for Reyes Tools & Die are given in BE15-3 and BE15-4. Prepare the job cost sheets for each of the three jobs. (Note: You may omit the column for manufacturing overhead). E16-1 Doc Gibbs has prepared the following list of statements about process cost accounting. 1. Process cost systems are used to apply costs to similar products that are mass produced in a continuous fashion. 2. A process cost system is used when each finished unit is indistinguishable from another. 3. Companies that produce soft drinks, motion pictures, and computer chips would all use process cost accounting. 4. In a process cost system, costs are tracked by individual jobs. 5. Job order costing and process costing track different manufacturing cost elements. 6. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead. 7. Costs flow through the accounts in the same basic way for both job order costing and process costing. 8. In a process cost system, only one work in process account is used. 9. In a process cost system, costs are summarized in a job cost sheet. 10. In a process cost system, the unit cost is total manufacturing costs for the period divided by the units produced during the period. Instructions Identify each statement as true or false. If false, indicate how to correct the statement. E17-9 Peter Catalano's Verde Vineyards in Oakville, California produces three varieties of wine: Merlot, Viognier, and Pinot Noir. His winemaster, Kyle Ward, has identified the following activities as cost pools for accumulating overhead and assigning it to products. 1. Culling and replanting. Dead or overcrowded vines are culled, and new vines are planted or relocated. (Separate vineyards by variety.) 2. Tying. The posts and wires are reset, and vines are tied to the wires for the dormant season. 3. Trimming. At the end of the harvest the vines are cut and trimmed back in preparation for the next season. 4. Spraying. The vines are sprayed with chemicals for protection against insects and fungi. 5. Harvesting. The grapes are hand-picked, placed in carts, and transported to the crushers. 6. Stemming and crushing. Cartfuls of bunches of grapes of each variety are separately loaded into machines which remove stems and gently crush the grapes. 7. Pressing and filtering. The crushed grapes are transferred to presses which mechanically remove the juices and filter out bulk and impurities. 8. Fermentation. The grape juice, by variety, is fermented in either stainless-steel tanks or oak barrels. 9. Aging. The wines are aged in either stainless-steel tanks or oak barrels for one to three years depending on variety. 10. Bottling and corking. Bottles are machine-filled and corked. 11. Labeling and boxing. Each bottle is labeled, as is each nine-bottle case, with the name of the vintner, vintage, and variety. 12. Storing. Packaged and boxed bottles are stored awaiting shipment. 13. Shipping. The wine is shipped to distributors and private retailers. 14. Heating and air-conditioning of plant and offices. 15. Maintenance of buildings and equipment. Printing, repairs, replacements, and general maintenance are performed in the off-season. Instructions For each of Verde’s fifteen activity cost pools, identify a probable cost driver that might be used to assign overhead costs to its three wine varieties. Reference Identify activity cost drivers (SO 4).
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