Godwin Fixtures Co. uses a job order cost system

Problem 19-2A (Pr19-2A) Godwin Fixtures Co. uses a job order cost system. The following data summarize the operations related to production for April 2008, the first mouth of operations:
a.) Materials purchased on account, $137,000.
b.) Materials requisitioned and factory labor used:
Job Materials Factory
No.601 $ 18,100 $17,000
No.602 20,000 25,500
No.603 13,050 9,700
No.604 34,500 33,550
No.605 15,700 14,800
No.606 17,800 18,300
For general factory use 6,600 47,000
c.) Factory overhead cost incurred on account, $4,950.
b.) Depreciation of machinery and equipment, $3,700.
c.) The factory overhead rate is $53 per machine hour. Machine hours used:
Job Machine Hours
No.601 215
No.602 230
No.603 175
No,604 300
N0.605 198
No.606 225
TOTAL 1,343
f.) Jobs completed: 601,602,603and 605.
g.) Jobs were shipped and customers were billed as fallows: Job 601,$72,750;Job 602,$88,780;Job 605,$74,500.

Instructions:
1.) Journalize the entries to record the summarized operations.
2.) Post the appropriate entries to t accounts for work in process and finished goods, using the identifying letters as dates. Insert memorandum account balances as of the end of the month.
3.) Prepare a schedule of unfinished jobs to support the balance in work in process account.
4.) Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.  

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4-27 (Assigning marketing, distribution, and selling expenses to customers) Tetra Company’s cost system assigns marketing, distribution, and selling expenses to customers using a rate of 33% of sales revenue

4-27 (Assigning marketing, distribution, and selling expenses to customers) Tetra Company’s cost system assigns marketing, distribution, and selling expenses to customers using a rate of 33% of sales revenue. The new controller has discovered that Tetra’s customers differ greatly in their ordering patters and interaction with Tetra’s sales force. Because the controller believes Tetra’s cost system does not accurately assign marketing, distribution, and selling expenses to customers, she developed an activity-based costing system to assign these expenses to customers. She then identified the following marketing, distribution, and selling costs for two customers, Ashton and Brown: ASHTON BROWN Sales representative $9,000 $42,000 Service customers 15,000 110,000 Handle customer orders 1,000 12,000 Ship to customers 24,000 72,000 The following additional information is available: ASHTON BROWN Sales $430,000 $350,000 Cost of goods sold 220,000 155,000 a. Using the current cost system’s approach of assigning marketing, distribution, and selling expenses to customers using a rate of 33% of sales revenue, determines the operating profit associated with Ashton and with Brown. b. Using the activity-based costing information provided, determine the operating profit associated with Ashton and with Brown. c. Which of the two methods produced more accurate assignments of marketing, distribution, and selling expenses to customers? Explain.

Click here for the solution: 4-27 (Assigning marketing, distribution, and selling expenses to customers) Tetra Company’s cost system assigns marketing, distribution, and selling expenses to customers using a rate of 33% of sales revenue