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Essentials Of Managerial Accounting Module 2

Essentials Of Managerial Accounting Module 2

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Assignment 1 for module 2

Provide the journal entry used to record each of the following transactions:

  1. Raw materials totaling $35,000 are purchased on account.
  2. Direct materials totaling $4,000 are requisitioned and placed into production.
  3. Timesheets submitted by employees reflect direct labor costs of $1,500, to be paid the next week.
  4. Which of the previously stated entries must also be recorded on the appropriate job cost sheet? Why?

Assignment 2 Module 2

Kline Company expects to incur $600,000 in overhead costs this coming year—$100,000 in the Cut and Polish department and $500,000 in the Quality Control department. Total annual direct labor costs are expected to be $120,000. The Cut and Polish department expects to use 18,750 machine hours, and the Quality Control department plans to use 37,500 hours of direct labor time for the year.

Required:

  1. Assume that Kline Company allocates overhead costs with the plant-wide approach, and direct labor cost is the allocation base. Calculate the rate used by the company to allocate overhead costs.
  2. Assume that Kline Company allocates overhead costs with the department approach. Calculate the rate used by each department to allocate overhead costs.

Assignment 3 module 2

In a two- to three-page journal, consider activity-based costing (ABC) management within a manufacturing firm. Describe the purpose and extent of activity-based costing. Within the analysis explain the five steps used in activity-based costing to determine costs.

  • Be sure to provide an example from your company or from one that you are familiar with that illustrates its use in allocating costs.
  • Conclude your journal by contrasting ABC with job costing.
  • Provide at least two scholarly sources.

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