A manufacturing company allows employees to purchase, at cost, manufacturing materials such as metal and lumber,...
A manufacturing company allows employees to purchase, at cost, manufacturing materials such as metal and lumber, for personal use. To purchase materials for personal use, an employee must complete a materials requisition form which then must be approved by the employee's immediate supervisor. The assistant cost accountant then charges the employee an amount based on the manufacturing company's net purchase cost.
An employee, who happens to be the assistant cost accountant, is in the process of replacing a deck on his home and has requisitioned lumber for personal use, which has been approved in accordance with company policy. In computing the cost of the lumber, the employee (the assistant cost accountant) reviewed all the purchase invoices for the past year. The employee then used the lowest price to compute the amount due for the company for the lumber.
Discuss whether this is a good company policy, include if there are proper internal controls in place. Discuss if the assistant cost accountant behaved in an ethical way. Discuss if there should be any type of corrective action. How should the company management handle this situation? Feel free to share any situations that sound similar in the real world.
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A manufacturing company allows employees to purchase, at cost,
manufacturing materials such as metal and lumber,...
Klein Builders. Inc. allows employees to purchase, at cost, manufacturing materials such as metal and lumber,...
Klein Builders. Inc. allows employees to purchase, at cost, manufacturing materials such as metal and lumber, for personal use. To purchase materials for personal use, an employee must complete a materials requisition form which then must be approved by the employee's immediate supervisor. The assistant cost accountant then charges the employee an amount based on the manufacturing company's net purchase cost. George, an employee, who happens to be the assistant cost accountant, is in the process of replacing a deck...
H. Jeckel Manufacturing Company allows employeees to purchase manufacturing materials (such as metal and lumber) at...
H. Jeckel Manufacturing Company allows employeees to purchase manufacturing materials (such as metal and lumber) at cost for personal use. To do so, an employee must complete a materials requisition form, which must then be approved by the employee's immediate supervisor. Fred Rubble, an assistant cost accountant, charges the employee an amount based on H. Jeckel's net purchase cost. Fred Rubble is in the process of replacing a deck on his home and has requisitioned lumber for personal use, which...
://rccd. instructure.com/courses/27417/assignments/760341?module_item_id=1645110 hvas In- et ! Smith Manufacturing Company allows employees to purchase materials, such as...
://rccd. instructure.com/courses/27417/assignments/760341?module_item_id=1645110 hvas In- et ! Smith Manufacturing Company allows employees to purchase materials, such as metal and limber, for personal use at a price equal to the company's cost. To purchase materials, an employee must complete a materials requisition form, which must then be approved by the employee's immediate supervisor. Brian, an assistant cost accountant, then charges the employee an amount based on Smith's net purchase cost. Brian is in the process of replacing a deck on his home...
CIVES 12.2, 12.3) Taylor Electronics Company is engaging in manufacturing ents. The company purch...
CIVES 12.2, 12.3) Taylor Electronics Company is engaging in manufacturing ents. The company purchases its raw materials from various supp orders t.25 (OBJECTIVES 12-2, 12-3) Taylor of onic comp a description of the purchasing system of Taylor Electronics ed volved following is uction supervisors complete a requisition form when they are in need of raw This is triggered by checking the current level of inventory on the inventory The bollowing onents T risk of ificant system w materials. Orders cannot...
Entries for Materials Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses a job order cost...
Entries for Materials Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses a job order cost system. Balances on April 1 from the materials ledger are as follows: Fabric $23,100 Polyester filling 6,900 Lumber 51,700 Glue 2,200 The materials purchased during April on account are summarized from the receiving reports as follows: Fabric Polyester filling $114,300 158,900 313,200 10,900 Lumber Glue Materials were requisitioned to individual jobs as follows: Fabric Polyester Filling Lumber Glue Total Job 601 Job 602 Job...
Entries for Materials GenX Furnishings Company manufactures designer furniture. GenX Furnishings uses a job order cost...
Entries for Materials GenX Furnishings Company manufactures designer furniture. GenX Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows: Fabric $21,800 Polyester filling 6,500 Lumber 48,800 Glue 2,100 The materials purchased during June are summarized from the receiving reports as follows: Fabric $107,000 Polyester filling 148,700 Lumber 293,200 Glue 10,200 Materials were requisitioned to individual jobs as follows: Fabric Polyester Filling Lumber Glue Total Job 601 $40,700 $51,300 $137,200 $229,200 Job...
Entries for Materials Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses a job order cost...
Entries for Materials Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses a job order cost system. Balances on April 1 from materials ledger are as follows: Fabric $22,300 Polyester filling 6,700 Lumber 50,000 Glue 2,100 The materials purchased during April on account are summarized from the receiving reports as follows: Fabric $114,800 Polyester filling 159,600 Lumber 314,600 Glue 10,900 Materials were requisitioned to individual Jobs as follows: Polyester Fabric Lumber Glue Total Filling $41,300 Job 601 $52,000 $139,200 $232,500...
Entries for Materials Kingsford Furnishings Company manufactures designer furniture Kingsford Furnishings uses a job order cost...
Entries for Materials Kingsford Furnishings Company manufactures designer furniture Kingsford Furnishings uses a job order cost system. Balances on April 1 from the materials ledger are as follows $22.400 Fabric Polyester filing Lumber 6,700 50,200 Gle 2200 The materials purchased during April on account are d from the receiving reports as follows Fabric Polyester filling $112.000 155,700 306,900 Lumber Glue 10600 Materials were requisitioned to individual jobs as follows: Fabric Polyester Filing Lumber Glue Total $52,200 $41,400 31,900 29.400 $139,500...
Record the purchase of material Record the transfer of materials to production Record the cost of...
Record the purchase of material
Record the transfer of materials to production
Record the cost of labor
Record the application of manufacturing overhead
During its first month of operation, Portia Company purchased S94,000 of materials on account and requisitioned $68,000 of materials for use in production. The company recorded $34,000 of direct labor cost and applied $24,000 of manufacturing overhead. Prepare Portia's journal entries to record these events. (If no entry is required for a transaction/event, select "No Journal Entry...
Journalize the June transactions: (1) for purchase of raw materials, factory labor costs incurred, and manufacturing...
Journalize the June transactions: (1) for purchase of raw
materials, factory labor costs incurred, and manufacturing overhead
cost incurred; (2) assignment of direct materials, labor, and
overhead to production; and (3) completion of jobs and sale of
goods.
Post the entries to Work in Process Inventory.
Reconcile the balance in Work in Process Inventory with the costs
of unfinished jobs.
Prepare a cost of goods manufactured schedule for June.
Case Inc. is a construction company specializing in custom patios. The...
://rccd. instructure.com/courses/27417/assignments/760341?module_item_id=1645110 hvas In- et ! Smith Manufacturing Company allows employees to purchase materials, such as metal and limber, for personal use at a price equal to the company's cost. To purchase materials, an employee must complete a materials requisition form, which must then be approved by the employee's immediate supervisor. Brian, an assistant cost accountant, then charges the employee an amount based on Smith's net purchase cost. Brian is in the process of replacing a deck on his home...
CIVES 12.2, 12.3) Taylor Electronics Company is engaging in manufacturing ents. The company purchases its raw materials from various supp orders t.25 (OBJECTIVES 12-2, 12-3) Taylor of onic comp a description of the purchasing system of Taylor Electronics ed volved following is uction supervisors complete a requisition form when they are in need of raw This is triggered by checking the current level of inventory on the inventory The bollowing onents T risk of ificant system w materials. Orders cannot...
Entries for Materials Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses a job order cost system. Balances on April 1 from the materials ledger are as follows: Fabric $23,100 Polyester filling 6,900 Lumber 51,700 Glue 2,200 The materials purchased during April on account are summarized from the receiving reports as follows: Fabric Polyester filling $114,300 158,900 313,200 10,900 Lumber Glue Materials were requisitioned to individual jobs as follows: Fabric Polyester Filling Lumber Glue Total Job 601 Job 602 Job...
Entries for Materials Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses a job order cost system. Balances on April 1 from materials ledger are as follows: Fabric $22,300 Polyester filling 6,700 Lumber 50,000 Glue 2,100 The materials purchased during April on account are summarized from the receiving reports as follows: Fabric $114,800 Polyester filling 159,600 Lumber 314,600 Glue 10,900 Materials were requisitioned to individual Jobs as follows: Polyester Fabric Lumber Glue Total Filling $41,300 Job 601 $52,000 $139,200 $232,500...
Entries for Materials Kingsford Furnishings Company manufactures designer furniture Kingsford Furnishings uses a job order cost system. Balances on April 1 from the materials ledger are as follows $22.400 Fabric Polyester filing Lumber 6,700 50,200 Gle 2200 The materials purchased during April on account are d from the receiving reports as follows Fabric Polyester filling $112.000 155,700 306,900 Lumber Glue 10600 Materials were requisitioned to individual jobs as follows: Fabric Polyester Filing Lumber Glue Total $52,200 $41,400 31,900 29.400 $139,500...
Record the purchase of material
Record the transfer of materials to production
Record the cost of labor
Record the application of manufacturing overhead
During its first month of operation, Portia Company purchased S94,000 of materials on account and requisitioned $68,000 of materials for use in production. The company recorded $34,000 of direct labor cost and applied $24,000 of manufacturing overhead. Prepare Portia's journal entries to record these events. (If no entry is required for a transaction/event, select "No Journal Entry...
Journalize the June transactions: (1) for purchase of raw
materials, factory labor costs incurred, and manufacturing overhead
cost incurred; (2) assignment of direct materials, labor, and
overhead to production; and (3) completion of jobs and sale of
goods.
Post the entries to Work in Process Inventory.
Reconcile the balance in Work in Process Inventory with the costs
of unfinished jobs.
Prepare a cost of goods manufactured schedule for June.
Case Inc. is a construction company specializing in custom patios. The...
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