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The following information of Highmoon Manuafacturing Co. is available for the year ended December 31, 2011:

Direct materials used	$400,000
Direct materials purchased	$420,000
Direct Labour cost assigned to production	$130,000
Wages paid to direct workers	$120,000
Manufacturing cost assigned to production	$190,000
Cost of finished goods manufactured	$750,000

Inventories at the beginning and end of the year were as follows:

	Dec.31	Jan.1
Materials	$55,000	?
Work In Process	?	$60,000
Finished Goods	$45,000	$65,000

1Prepare and Complete the Work In Process Account

2Calculate the total amount of inventory that should appear in the companys balance sheet at December 31, 2011 .

3Calculate the total manufacturing costs charged to the Work in Process Inventory account during 2011 .

4Calculate the total manufacturing costs deducted from revenue in 2011.

5Calculate the balance in the Materials Inventory account at the beginning of 2011:

The "flow" of manufacturing costs through the ledger of MF Enterprise. Co. during the month of August is summarized in the following T accounts. Certain amounts have been omitted and are represented by question marks. From the data supplied above, determine each of the following amounts. Some of the required amounts already appear in the T accounts; others require a short computation. (1) The amount of direct materials purchased during the month (2) The amount of direct labor cost assigned to production. (3) The amount of accrued wages payable to direct labor workers at August 3. 4) The cost of finished goods manufactured during the month. (5) The cost of goods sold during the month. 3. The information below is taken from the job cost sheets of XYZerd Co.:

Job Number	Manufacturing Costs as of Oct. 31	Manufacturing Costs in November
350	$11,955
351	$8,910
352	$2,375	$5,593
353	$6,522	$10,279
354	$2,128	$5,573
355	$2,600	$3,987
356		$9,231

During November, job numbers 352 ,353,354 were completed and job numbers 350, 351 and 352 were delivered to customers. Jobs no. 355 and 356 are still in process at November 30. From this information, compute the following:

1) What is the work in process inventory at October 31?

2) What is the finished goods inventory at October 31?

3) What is the cost of goods sold during November?

4) What is the work in process at November 30?

5) What is the finished goods inventory at November 30?

Houston Oil Company uses a process costing system with two departments: (a) a Refining Department and (b) a Packaging Department. During June, its first month of operations, the company manufactured and sold 650,000 gallons of motor oil, generating total revenue of $3,845,000. The company incurred the following manufacturing costs in June:

	Refining department	Packaging department
Direct materials	$770,000	$192,500
Direct Labour	$220,000	$55,000
Manufacturing overhead	$957,000	$110,000

1How much was the unit cost per gallon of oil processed by the Refining Department in June?

2If each case of oil contains four gallons, how much was the unit cost per case incurred by the Packaging Department in June?

3How much was the unit cost per case transferred to finished goods in June? (Round your final answer to one decimal place.)

4How much total gross profit was generated by the company in June? (Do not round intermediate calculations)

5Prepare journal entries to record

--transfer the completed units from refining department to packaging department

--transfer the completed units from from packaging department to finished goods inventory

5.Information regarding a product manufactured and sold by Schiffman is shown below:

Maximum capacity with existing facilities	4,000 units
Total fixed costs per month	$50,000
Variable cost per unit	$42.00
Sales price per unit	$56.00

1Calculate the contribution margin ratio for this product

2Calculate the number of units Schiffman must sell to break even (rounded)

3Calculate the dollar sales volume necessary to produce monthly operating income of $12,000.

Use the following data for questions 4) and 5).

The monthly high and low levels of units and total manufacturing overhead

are shown below:

	Units	Overhead
Highest	2,250	$20,250
Lowest	1,000	$11,250

4) Find the cost formula for the monthly overhead cost

5) In a month in which 2,300 equivalent full units are produced, predict the amount of manufacturing overhead.

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