ACC 601 Managerial Accounting Case 1

Acc 601 Managerial Accounting case 1 100 Points

Complete the following activities in good form, using Excel or Word. Provide all supporting calculations to demonstrate your methods. Submit only one completed copy via Moodle; do not email it. The case study must be formatted according to APA guidelines.

Paper For Above instruction

Part A: Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement

Nish Corporation has provided data for April: sales of $220,000; raw materials purchases of $50,000; direct labor costs of $23,000; manufacturing overhead costs of $59,000; selling expenses of $18,000; administrative expenses of $43,000. Beginning and ending inventories are as follows: raw materials ($26,000/$35,000), work in process ($18,000/$22,000), finished goods ($42,000/$29,000).

Part B: Application of Job Order Costing

Scanlon Company applies manufacturing overhead based on machine-hours, with estimated machine-hours of 95,000 and overhead costs estimated at $1,710,000. Actual data shows 75,000 machine-hours and overhead costs of $1,687,500. The applied overhead in ending inventories amounts to $337,500 (WIP) and $253,125 (Finished Goods), with applied overhead in COGS of $759,375.

Part C: Process Costing Using Weighted Average Method

Data include beginning WIP of 2,400 units (75% materials, 50% conversion), costs of $8,400 (materials) and $7,200 (conversion). During the month, 20,800 units are started, 22,200 are completed and transferred out, with costs added totaling $97,400 (materials) and $129,600 (conversion). Ending WIP is 1,000 units, 80% materials complete, 60% conversion complete.

Part D: Process Costing Using FIFO Method

Crone Corporation's data: beginning WIP inventory costing $1,920; 3,130 units started and completed in October; costs per equivalent unit: materials $9.50, conversion $20.40. Equivalent units in beginning WIP are calculated to determine the costs of ending WIP and units transferred out.

Part E: Activity-Based Costing (ABC)

Welk Manufacturing applies overhead based on DLHs, with estimated total overhead of $1,464,480 and 24,000 total DLHs. Product data: H16Z (30,000 units, $10.20 materials, $8.40 labor, 0.40 DLH), P25P (10,000 units, $50.50 materials, $25.20 labor, 1.20 DLH). ABC data include activities such as supporting DLH, setups, and parts administration with respective costs and measures. Task involves calculating unit costs under traditional and ABC systems.

References

  • Drury, C. (2013). Management and Cost Accounting (9th ed.). Cengage Learning.
  • Hilton, R. W., & Platt, D. E. (2013). Managerial Accounting: Creating Value in a Dynamic Business Environment (10th ed.). McGraw-Hill.
  • Kaplan, R. S., & Anderson, S. R. (2004). Time-driven Activity-Based Costing. Harvard Business Review.
  • Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2018). Managerial Accounting (16th ed.). McGraw-Hill Education.
  • Eldenburg, L. K., & Scott, M. (2016). Cost Management: A Strategic Approach. Pearson.
  • Langfield-Smith, K., Thorne, H., & Hilton, R. (2015). Management Accounting: Information for Decision-Making and Strategy Execution (7th ed.). Pearson.
  • Horngren, C. T., Datar, S. M., & Rajan, M. (2015). Cost Accounting: A Managerial Emphasis (15th ed.). Pearson.
  • Cooper, R., & Kaplan, R. S. (1998). Measure Costs Right: Make the Right Decisions. Harvard Business Review.
  • Vergauwen, A., & Van de Ven, B. (2010). Activity-Based Costing and Management. Wiley.
  • Otley, D. (2016). Budgeting and Budgetary Control. Behavioural Aspects and Practical Considerations. Accounting, Organizations and Society.

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