Other than the organizational chart, all other answers must be typed. Make sure you include
your name and the name of the company you are assigned on your submission. Assignments
are due Tuesday, March 2oth – no extensions. Follow the instructions below for each section.
Instructions for Part 1 (Chapter 14)
(a) Based on the information given, construct an organizational chart for your company.
(b) A list of accounts and their values are given. From this information, prepare a cost of
goods manufactured schedule, a cost of goods sold schedule, an income statement, and the
current assets section of the balance sheet for your company for the month of November
2016. (use proper format, including headings)
Instructions for Part 2 (Chapter 15)
(a) Set up the job cost sheets for Job No.157 and Job No. KSZ. Determine the total cost for
each manufacturing special order for these jobs. (Round unit cost to nearest cent.)
(b) Journalize the activities from these job cost sheets in the general journal. Also, journalize
the other costs that occurred during this period of time.
(c) Assuming that Manufacturing Overhead has a credit balance of $3,600, determine
whether overhead has been under/over applied and make the adjusting entry.
Instructions for Part 3 (Chapter 16)
(3) Prepare a production cost report for your company using the weighted-average method.
Instructions for Part 4 (Chapter 17)
(a) For each of these cost pools, what would be the likely activity cost driver?
(b) Using the following information, determine the overhead rates and the actual cost
assigned for each of the activity cost pools in a possible ABC system for your company.
(c) (1) The results of ABC can provide a more accurate picture of costs. Discuss the value of
your company using this system to determine overhead costs. (2) How might using ABC affect
the decision making at your company?
Managerial Project Part 1
Xena Corporation is a private corporation formed for the purpose of providing
the products and the services needed to irrigate farms, parks, commercial projects,
and private homes. It has a centrally located factory in a U.S. city that manufactures the
products it markets to retail outlets across the nation. It also maintains a division that
provides installation and warranty servicing in six metropolitan areas.
The mission of Xena is to manufacture quality parts that can be used for effective
irrigation projects that also conserve water. By that effort, the company hopes to satisfy
its customers, provide rapid and responsible service, and serve the community and
a. the employees who represent them in each community.
The company has been growing rapidly, so management is considering new ideas to
help the company continue its growth and maintain the high quality of its products.
Xena was founded by Bill Thomas who is the company president and chief
executive officer (CEO). Working with him from the company’s inception was Bill’s brother,
John, whose sprinkler designs and ideas about the installation of proper systems have been
a major basis of the company’s success. John is the vice president who oversees all aspects
of design and production in the company. The factory itself is managed by Rich Sharron who hires his
line managers to supervise the factory employees. The factory makes all of the parts for the irrigation
systems. The purchasing department is managed by Dennis Silver.
The installation and training division is overseen by vice president Henry Writer, who
supervises the managers of the six local installation operations. Each of these local managers
hires his or her own local service people. These service employees are trained by the home
office under Henry Writer’s direction because of the uniqueness of the company’s products.
There is a small Human Resources department under the direction of Deb Delaney,
a vice president who handles the employee paperwork, though hiring is actually performed
by the separate departments. Sam Totter is the vice president who heads the sales
and marketing area; he oversees 10 well-trained salespeople.
The accounting and finance division of the company is headed by Martin Heath, who
is the chief financial officer (CFO) and a company vice president; he is a member of the
Institute of Management Accountants and holds a certificate in management accounting.
He has a small staff of Certified Public Accountants, including a controller and a treasurer,
and a staff of accounting input operators who maintain the financial records.
A partial list of Xena’s accounts and their balances for the month of November 2016 follows.
Accounts Receivable S 275,000
Advertising Expenses 44,000
Depreciation-Factory Equipment 15,800
Depreciation-Office Equipment 2,900
Direct Labor 41,000
Facto‘y Supplies Used 16,750
Factory Utilities 10,200
Finished Goods Inventory, November 30 68,500
Finished Goods Inventory, October 31 72,500
Indirect Labor 49,000
Office Supplies Expense 1,600
Other Administrative Expenses 72,000
Prepaid Expenses 41,250
Raw Materials Inventory, November 30 52,500
Raw Materials Inventory, October 31 38,700
Raw Materials Purchases 185,500
Rent-Factory Equipment 48,000
Repairs-Factory Equipment 4,700
Salaries for the office workers 325,000
Sales Commissions 40,500
Work In Process Inventory October 31 52,500
Work In Process Inventory, November 30 43,000