Accounting

Assignment 2: Problem Solving Exercises

In your textbook in the respective chapters "System Design: Job-Order Costing" and "Cost Behavior: Analysis and Use" from the Exercises connect section,
complete and submit to the following exercises:

E 3-1, E 3-2, E 3-3, E 5-1, E 5-3, E 5-10

Exercises connect

EXERCISE 3–1: Process Costing and Job-Order Costing [LO1]

Which method of determining product costs, job-order costing or process costing, would be more appropriate in each of the following situations?

* a. An Elmer’s glue factory.

* b. A textbook publisher such as McGraw-Hill.

* c. An Exxon oil refinery.

* d. A facility that makes Minute Maid frozen orange juice.

* e. A Scott paper mill.

* f. A custom home builder.

* g. A shop that customizes vans.

* h. A manufacturer of specialty chemicals.

* i. An auto repair shop.

* j. A Firestone tire manufacturing plant.

* k. An advertising agency.

* l. A law office.

EXERCISE 3–2: Job-Order Costing Documents [LO2]

Cycle Gear Corporation has incurred the following costs on job number W456, an order for 20 special sprockets to be delivered at the end of next month.

Direct materials:

* On April 10, requisition number 15673 was issued for 20 titanium blanks to be used in the special order. The blanks cost $15.00 each. On April 11, requisition number 15678 was issued for 480 hardened nibs also to be used in the special order. The nibs cost $1.25 each.

Direct labor:

* On April 12, Jamie Unser worked from 11:00 AM until 2:45 PM on Job W456. He is paid $9.60 per hour. On April 18, Melissa Chan worked from 8:15 AM until 11:30 AM on Job W456. She is paid $12.20 per hour.

Required:

* 1. On what documents would these costs be recorded?

2. How much cost should have been recorded on each of the documents for Job W456?

EXERCISE 3–3: Compute the Predetermined Overhead Rate [LO3]

Harris Fabrics computes its predetermined overhead rate...