Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
1) Harbor Manufacturing Company uses a process cost accounting system. Materials
are added at the beginning of the process. Direct labor and overhead are added evenly
throughout the process. The company uses monthly reporting periods for its
weighted-average process cost accounting. The following are the operating and cost
data information for October.
The October 1 beginning Goods in Process Inventory consisted of 20,000 units. The
costs for this inventory are $82,500 of direct materials, $24,400 of direct labor, and
$48,800 of factory overhead. Factory overhead is applied at 200% of direct labor cost.
In addition to the beginning inventory costs, the company issued the following costs
into Goods in Process Inventory; direct materials, $240,000; direct labor, $68,000;
factory overhead, $136,000.
During October, the company completed and transferred 60,000 units of its product to
finished goods. At the end of the month, the goods in process inventory consisted of
15,000 units that were 40% complete with respect to direct labor and factory overhead
and 100% complete with respect to materials.
Prepare the company's process cost summary for October using the weighted average
method.
2) Marina, Inc., held 1,500 of Navia common stock with a cost of $36,900. These
shares were classified as a long-term available-for-sale investment. It sold the shares on
December 13 for $42,100. Prepare the journal entry to record this sale.
3) Identify the two main groups involved in establishing generally accepted accounting
principles.
4) From the information provided, calculate Wooden's profit margin ratio for each of
the three years. Comment on the results, assuming that the industry average for the
profit margin ratio is 6% for each of the three years.
5) A company made the following merchandise purchases and sales during the month of
May:
There was no beginning inventory. If the company uses the LIFO periodic inventory
method, what would be the cost of the ending inventory?
