Principles of Cost Accounting: Week 1 Homework (P1-1, P1-3 and P1-8)

Principles of Cost Accounting
Week 1 Homework (P1-1, P1-3 and P1-8)

P1-1:
Prepare a performance report for the dining room of Rosita’s Mexican Restaurant for the month of February 2008, using the following data:
Budgeted Data:
January February
Dining room wages 4,300 4,150
Laundry and housekeeping 1,650 1,500
Utilities 2,200 2,050
Depreciation 1,500 1,500
Actual Data:
January February
Dining room wages 4,700 4,400
Laundry and housekeeping 1,600 1,400
Utilities 2,350 2,100
Depreciation 1,500 1,500

P1-3:
The adjusted trial balance for Sturek Furniture Company on November 30, the end of its first month of operation, is as follows:
Sturek Furniture Company
Trial Balance
November 30, 2008
Cash 21,800
Accounts Receivable 16,200
Finished Goods 13,900
Work in Process 0
Materials 7,400
Building 300,000
Accumulated Depr.—Building 3,000
Machinery and Equipment 8,000
Accumulated Depr.—Mach. and Equip 2,200
Accounts Payable 7,900
Payroll 0
Capital Stock 422,550
Sales 68,300
Cost of Goods Sold 41,450
Factory Overhead 0
Selling and Administrative Expenses 15,200
$503,950 $503,950
The general ledger reveals the following additional data:
a. There were no beginning inventories.
b. Materials purchases during the period were $33,000.
c. Direct labor cost was $18,500.
d. Factory overhead costs were as follows:
Indirect materials 1,400
Indirect labor 4,300
Depr. of building 3,000
Depr. of machinery and equipment 2,200
Utilities 1,750
Total: 12,650

Required:
1. Prepare a statement of cost of goods manufactured for the month of November.
2. Prepare an income statement for the month of November.
3. Prepare a balance sheet as of November 30. (Hint: Do not forget Retained Earnings.)

P1-8
Ramirez Company manufactures goods to special order and uses a job order cost system. During its first month of operations, the following selected transactions took place:
a. Materials purchased on account 37,000
b. Materials issued to the factory:
Job 101 2,200
Job 102 5,700
Job 103 7,100
Job 104 1,700
For general use in the factory 1,350
c. Factory wages and salaries earned:
Job 101 2,700
Job 102 6,800
Job 103 9,200
Job 104 2,100
For general work in the factory 2,250
d. Miscellaneous factory overhead costs on account 2,400
e. Depreciation of $2,000 on the factory machinery recorded.
f. Factory overhead allocated as follows:
Job 101 1,200
Job 102 2,000
Job 103 3,800
Job 104 1,000
g. Jobs 101, 102, and 103 completed.
h. Jobs 101 and 102 shipped to the customer and billed at $30,900.

Required:
1. Prepare a schedule reflecting the cost of each of the four jobs.
2. Prepare journal entries to record the transactions. (One control account is used for Work in Process.)
3. Compute the ending balance in Work in Process.
4. Compute the ending balance in Finished Goods.
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