The overhead allocated to customer order number 1242 if activity-based costing (ABC) is used is $
23.90
.

Requirement 6. How much would be allocated to customer order if​ activity-based costing​ (ABC) is used to allocate the pharmacy overhead​ costs? ​(Round your answer to the nearest​ cent.)
The overhead allocated to customer order number 1243 if activity-based costing (ABC) is used is $
24.90
.

Requirement 7. Which allocation method​ (traditional or​ activity-based costing) would produce a more accurate product​ cost? Explain your answer.
The
activity-based costing
allocation method would produce a more accurate product cost because this method takes into account
the specific resources used by each order
.

1.
Manufacturing plants tend to be organized with​ self-contained production cells.
Lean organization
2.
Maintain greater quantities of raw​ materials, work in​ process, and finished goods inventories.
Traditional organization
3.
Setup times are longer.
Traditional organization
4.
High quality is stressed in every aspect of production.
Lean organization
5.
Produce in smaller batches.
Lean organization
6.
Emphasis is placed on shortening manufacturing cycle times.
Lean organization
7.
Manufacturing plants tend to group like machinery together in different parts of the plant.
Traditional organization
8.
Setup times are shorter.
Lean organization
9.
Produce in larger batches.
Traditional organization
10.
Strive to maintain low inventory levels.
Lean organization
11.
Cycle time tends to be longer.
Traditional organization
12.
Quality tends to be​ "inspect-in" rather than​ "build-in."
Traditional organization

Prevention costs​:
Prevention costs are costs incurred to avoid producing​ poor-quality goods or services. In the case of ​Industries, this would include the costs related to the design of the product.
Appraisal costs
Appraisal costs are costs incurred to detect​ poor-quality goods or services. In this​ scenario, the appraisal cost will be the cost related to the inspection of the product.
Internal failure costs
The internal failure costs for Industries will be the​ repair/rework costs made in the plant after inspection.
External failure costs
The external failure costs are the costs associated with defective products that were not detected until after delivery is made to customers. This will include the​ repair/rework costs made at​ customers' homes as well as an estimate of how much profit the company is losing due to having a bad reputation.

a. raw materials inventory:debit:470,000
accounts payable:credit:470,000

b. work in process inventory:debit:83,200
manufacturing overhead:debit:35,800
wages payable:credit:119,000

c. work in process inventory:debit:227,600
raw materials inventory:credit:227,600

d.manufacvturing overhead:debit:6,300
accumulated depreciation-equipment:credit:6,300

e. manufacturing overhead:debit:14,100
cash:credit:10,100
prepaid insurance:credit:4,000

f. work in progress inventory:debit:49920
manufacturing overhead:credit:49,920

g. finished goods inventory:debit:258,200
work in process inventory:credit:258,200

h. accounts receivable:debit:245,000
sales revenue:credit:245,000

cost of goods sold:debit;164,960
finished goods inventory:credit:164,960

2. work in progress inventory
b-83,200
c-227,600
f-49,920 g-258,200
bal-102,520

finished goods inventory
g-258,200 h-164,960
bal-93,240

3. steinborn homes
reconciliation of work in process inventory subsidiary and control accounts
chalet #14
unfinisghed chalet
direct materials-$56,600
direct labor-28,700
manufacturing overhead (60% of labor)-17,220
total cost equals work in process balance-102,520

4. steinborn homes
reconciliation of finished goods inventory and subsidiary and control accounts
chalet # 15
completed, unsold chalet
direct materials-$62,200
direct labor-19,400
manufacturing overhead(60% of labor)-11,640
total cost equals finished goods balance-93,240

5. The gross profit covers these types of costs
-customer service, administration, dsign, distribution, marketing, research & development

Steinborn homes
gross profit on chalets sold in may
chalet #13 chalet # 16
sales revenue $99,000 $146,000
cost of goods sold $-64,460 $-100,500
gross profit 34,540 45,500

All Wood Industries manufactures custom-designed playground equipment for schools and city parks. All Wood expected to incur $637,500 of manufacturing overhead cost, 42,500 of direct labor hours, and $860,000 of direct labor cost during the year (the cost of direct labor is $38 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. All Wood completed Job 305. The job used 180 direct labor hours and required $13,000 of direct materials. The City of Ogdenville has contracted to purchase the equipment at a price of 23% over manufacturing cost.

What is the total job cost for Job 305?

$22,540
Explanation:
Direct Labor: 38x180= $6840
Direct Materials: $13000
MOH: (637500/42500)=15; 15x180=$2700

Total Cost: $22,540

$27,724
Explanation:
22540x0.23=5184
5184+22540= $27,724

The and balance sheets of Corporation follow. The income statement is also provided. had no noncash investing and financing transactions during . During the​ year, the company sold equipment for ​, which had originally cost and had a book value of . The company did not issue any notes payable during the year but did issue common stock for . The company purchased plant assets and​ long-term investments with cash.
LOADING...​(Click the icon to view the income​ statement.) LOADING...​(Click the icon to view the balance​ sheets.)
Requirements
1. Prepare the statement of cash flows for Corporation for using the indirect method.
2. Evaluate the​ company's cash flows for the year. Discuss each of the categories of cash flows in your response.
Requirement 1. Prepare the statement of cash flows for Corporation for using the indirect method.
Prepare the statement one section at a time. ​(Use parentheses or a minus sign for numbers to be subtracted or for a net cash​ outflow.)

Gibson Corporation

Statement of Cash Flows (Indirect Method)

For the Year Ended December 31, 2017

Operating Activities:



Net income

$182,400

Adjustments to reconcile net income to cash basis:



Depreciation expense
$4,700


Decrease in other accrued expenses payable
(3,900)


Increase in accounts receivable
(2,400)


Gain on sale of equipment
(3,900)


Increase in prepaid insurance
(500)


Decrease in accounts payable
(3,300)


Decrease in salaries payable
(4,900)


Increase in interest payable
2,800


Increase in taxes payable
5,500


Decrease in inventory
6,500
600

Net cash provided by (used for) operating activities

183,000


Investing Activities:



Proceeds on sale of equipment
15,200


Purchase of equipment
(29,800)


Purchase of stock investments
(110,000)


Net cash provided by (used for) investing activities

(124,600)


Financing Activities:



Cash payments for dividends
(25,400)


Repayment of long-term debt
(36,000)


Issuance of common stock
31,000


Net cash provided by (used for) financing activities

(30,400)


Net increase (decrease) in cash

28,000

Cash, beginning of the year

20,500

Cash, end of the year

$48,500

Requirement 2. Evaluate the​ company's cash flows for the year. Discuss each of the categories of cash flows in your response.
Gibson Corporation's cash flows look
strong
. They had
$183,000
provided by operating activities. The investing activities
used
some cash. These activities included
purchasing a stock investment and equipment.

The financing activities
used
cash
to pay dividends
and
to pay down long-term debt
. The corporation also
issued some additional common stock
.