a. Identify (list) and total period costs

Module 2: total period costs


CRITICAL THINKING ASSIGNMENT (100 points): Applying Managerial Accounting Concepts to the
Manufacturing Industry
Complete the following questions using Microsoft Excel. No other submission format is allowed.
Review the grading rubric to confirm you are meeting the assignment requirements. (All amounts in
SAR except units.)
Given the following information for Dorttmund
Corporation:
Advertising costs 320,000
Office rent 240,000
Direct materials 800,000
Delivery vehicle depreciation 90,000
Factory repair and maintenance 420,000
Sales salary 510,000
Indirect labor 220,000
Manufacturing equipment depreciation 180,000
Administrative salaries 360,000
President’s salary 700,000
Sales revenue
5,200,00
0
Indirect materials 190,000
Direct labor
1,500,00
0
Machine hours 2,000
Direct Labor hours 10,000
Machine hours per unit 3
Direct labor hours per unit 6
Direct materials per unit ?
Units manufactured 500
Units sold 350
a. Identify (list) and total period costs
b. Calculate overhead per unit based on machine hours
c. Calculate total product costs for units manufactured
d. Calculate total cost of goods sold
e. Prepare income statement in good form assuming no beginning inventory
You must show all your work for credit.

Module 4


CRITICAL THINKING ASSIGNMENT (100 points):
Complete the following questions using Microsoft Excel. No other submission format is allowed.
Review the grading rubric to confirm you are meeting the assignment requirements.
Consider the following information for Hamburg Corporation:
Units
Beginning inventory 80,000
Units started during the year 150,000
Ending inventory 62,000
Inventory is 100% complete as to materials and 60% complete as to conversion.
Material
s Conversion
Beginning costs (SAR) 420,000 687,000
Costs added during the period
(SAR)
1,250,00
0 983,000
Using the WEIGHTED AVERAGE method:

  1. Calculate the number of units completed during the period.
  2. Calculate equivalent units for conversion during the period.
  3. Calculate cost per equivalent units for Materials.
    Mannheim Corporation manufactures small camping tents and family camping tents. Estimated direct
    labor time to produce each type of tent is as follows:
    Small Family
    Estimated tents produced 25,000 10,000
    Direct labor hours per tent 2 5
    Estimated overhead for the period = 1,200,000 SAR.
  4. Compute the overhead cost assigned to each type of tent assuming direct labor hours are used
    to allocate overhead costs.
    The controller is not satisfied with the traditional method of allocating overhead because he believes
    that most of the overhead costs relate to the family tent product line because of its complexity. He
    therefore developed the following three activity cost pools and related cost drivers to better
    understand the costs.
    Activity Cost Pools Expected Use of
    Cost Drivers
    Estimated
    Overhead Costs
    (SAR)
    Setting up machines 1,000 setups 220,000
    Assembling 90,000 labor hours 990,000
    Inspection 1,200 inspections 240,000
  5. Calculate the activity-based overhead rates for these three cost pools.
  6. Compute the cost that is assigned to each bicycle product line using activity-based costing
    system, given the following information.
    Expected Use of Cost Drivers per Product
    Small Family
    Number of setups 150 850
    Direct labor hours 30,000 60,000
    Number of inspections 100 1,100
  7. What do you believe the controller should do and why?
    You must show your work for credit.
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