acct 231 JONES CORPORATION (cost of goods mfd), Newton

PROBLEM 1

Jones Corporation has the following cost records for May 2013

Indirect factory labor

$ 7,000

Advertising Expense

$ 8,000

Direct materials used

12,000

Depreciation, factory equipment

3,200

Work in process, 5/1/13

6,000

Direct labor

13,000

Work in process, 5/31/13

7,800

Maintenance, factory equipment

1,000

Factory supervisor’s salary

4,500

Indirect materials

1,200

Sales Commission

10,000

Office Manager Salary

4,000

Instructions

(a)

Prepare a cost of goods manufactured schedule for May 2013

PROBLEM 2

Newton, Inc. fixed costs are expected to be $85,000 and variable costs are expected to be $20 per product. Sales price is $40 per product.

Instructions

Determine the required sales in units to break even.

PROBLEM 3
Nison Company accumulates the following data concerning a mixed cost, using miles as the activity level.
	Miles Driven	Total Cost		Miles Driven	Total Cost
January	10,000	$15,000	March	9,000	$12,500
February	8,000	$14,500	April	7,500	$12,000
Instructions
Compute the variable and fixed cost elements using the high-low method.



Cost data:
Beginning work in process inventory, December 1
Direct Materials $30,000
Conversion Cost $ 6,000
$36,000

Cost incurred during production in December
Direct Materials 390,000
Conversion costs 122,000
Total Costs $548,000

Production data

Completed and transferred out 62,000
Ending work in process (gallons) 8,000

Ending work in process was 100% complete as to materials and 25% complete as to conversion costs.




Instructions
(a) Compute the equivalent units of production.
(b) Determine the unit production costs.
(c) Determine the costs to be assigned to units transferred out and ending work in process.