Finlon Upholstery Inc. uses a job-order costing system to accumulate manufacturing costs. The company’s work-in-process on December 31, 2001, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date.
Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company’s practical capacity, in terms of direct-labor hours multiplied by the budgeted direct-labor rate.) Budgeted totals for 2002 for direct labor and manufacturing overhead are $4,200,000 and $5,460,000, respectively. Actual results for the year are as follows:
Direct Materials Used $5,600,000.00
Direct Labor $4,350,000.00
Indirect Material Used $65,000.00
Indirect Labor $2,860,000.00
Factory Depreciation $1,740,000.00
Factory Insurance $59,000.00
Factory Utilities $830,000.00
Selling and Administrative Expenses $2,160,000.00
Job no. 2077 was completed in January 2002, and there was no work in process at year-end. All jobs produced during 2002 were sold with the exception of Job no. 2143, which contained direct-material costs of $156,000 and direct-labor charges of $85,000. The company charges any under- or over-applied overhead to the cost of goods sold category.
Using the above information, do the following:
• Calculate the company’s predetermined overhead application rate.
• Calculate the additions to the work-in-process inventory account for the direct material used, direct labor, and manufacturing overhead.
• Calculate the finished-goods inventory for the balance sheet.
• Calculate the over-applied or under-applied overhead at year-end.
• Explain if it is appropriate to include selling and administrative expenses in the cost of goods sold category.
Perform your calculations in an Excel spreadsheet and copy the calculations into a Word document.
Write a 1-page paper in Word format. Apply APA standards to citation of sources.
1.0 EXECUTIVE SUMMARY The accompanying report layout investigate that will assess the objectives and goal inside association. In doing as such a progression of meeting with the significant individual of Talisman (M) Sdn Bhd is finished. Charm Energy (Talisman) is an autonomous worldwide upstream oil and gas organization undertaking investigation, advancement, generation, transportation, and promoting of raw petroleum, flammable gas, and gaseous petrol fluids (NGLs). Charm was set up in 1992. The organization basically works in North America, the North Sea, and Southeast Asia. It is headquartered in Alberta, Canada and utilizes more than 2,600 individuals. The Malaysia branch is situated at Menara Citibank Kuala Lumpur. Allude to index 1 for area and auxiliaries. Charm is recorded on the Toronto and New York stock trades under the image TLM. Charm is additionally part of the S&P/TSX 60 Index. At year end, the organization esteem was over $16 billion with 1,1019 million offers remarkable 2.0 INTRODUCTION The historical backdrop of Talisman Energy (Talisman) goes back to 1953, when the organization was built up as BP Canada. It later turned into a free organization, in 1992. Around the same time, Talisman Energy ceased its mining tasks keeping in mind the end goal to center around its center regions. Charm Energy (Talisman) is one of the biggest free oil and gas makers in Canada. Its fundamental business exercises incorporate investigation, improvement, generation, transportation, and promoting of unrefined petroleum, gaseous petrol, and flammable gas fluids (NGLs). It has around seven working auxiliaries. Charm has progressing creation, advancement, and investigation activities in North America, the North Sea, Southeast Asia and Australia, North Africa, and Trinidad and Tobago. Charm's tasks are directed primarily in five geographic fragments: North America, UK, Scandinavia, Southeast Asia, and other. The organization delivered more than 430,000 boe/d in 2008, around half oil and half gaseous petrol. The North America portion incorporates tasks in Canada and the US. The UK section incorporates tasks in the UK and the Netherlands. The Scandinavia fragment incorporates tasks in Norway and Denmark. The Southeast Asia section incorporates tasks in Indonesia, Malaysia, Vietnam, Australia, and Papua New Guinea. The other section incorporates tasks in North Africa, Trinidad and Tobago, Colombia, Peru, and Qatar and also other universal investigation zones. 3.0 ANALYSIS AND FINDING OF THE SUMMARY SCENARIO 3.1 Company Goal and goal In any arranging procedure, destinations and objectives must be precisely settled. Beginning from the proposed targets and objectives, the techniques to contact them will be delineated The absence of lucidity of the proposed destinations can trade off the entire succession. As per Oliveira (2002), the goals fill the accompanying organization needs: 1. give to individuals the sentiment a particular and satisfactory part in the organization 2. offer consistency to basic leadership among countless administrators; 3. energize devotion and satisfaction in light of expected outcomes; and 4. supply a base for restorative activities and control. In graphing bearing of the organization Talisman Energy (Talisman) has set three needs goals. Allude Table 1 Growing long haul development openings Building high effect investigation Keep concentrating on current portfolio Table 1 - Goal and Strategy The fundamental components of Talisman's goal are: • To set up practical, beneficial development from its unpredictable gas business in North America, and additionally Southeast Asia, and Norway. • To make an investigation portfolio, which adds to recharging by discovering material hydrocarbons after some time. • And to support this with economical wellsprings of money from develop territories, and additionally centering the portfolio. Two primary reasons the goal was acquainted were with bring down finding and improvement (F&D) costs, and to build the save life file after some time. F&D expenses will be purchased down in a few ways: • The capricious plan of action has basically bring down F&D costs than the traditional gas plan of action. • Talisman is hoping to grow movement in Southeast Asia, where F&D costs are for the most part lower. • If the investigation move to bigger prospects is effective, F&D expenses will fall. 3.2 SWOT Analysis Qualities Shortcomings Solid market position Differentiated geological nearness Absence of scale High obligation Openings Dangers Acquisitions and assentions New oil and gas generation Financial stoppage in the US and Euro zone Natural directions Immersion of assets Table 2 - Swot Analysis Table Qualities Solid market position Charm Energy is an autonomous, universal upstream oil and gas organization whose principle business exercises incorporate investigation, improvement, generation, transportation, and showcasing of unrefined petroleum, flammable gas and gaseous petrol fluids (NGLs). The organization's three center regions are North America, the North Sea, and Southeast Asia. In North America, Talisman is a main profound gas voyager and has noteworthy eccentric petroleum gas potential. In the North Sea, the organization works in excess of 40 oilfields and has broad investigation real esatate in Norway. In Southeast Asia, Talisman has considerable long-life petroleum gas saves and exceptionally imminent investigation real esatate. Opportunity : A solid market position causes the organization to use its piece of the overall industry. Enhanced land nearness Charm Energy has continuous creation, improvement, and investigation activities in North America, the North Sea, Southeast Asia and Australia, North Africa, and Trinidad and Tobago. The organization's activities are directed chiefly in five geographic portions: North America, UK, Scandinavia, Southeast Asia, and others (containing North Africa, Trinidad and Tobago, Colombia, Peru, and Qatar). Charm's total creation for the year finished December 31, 2008 was roughly 452,000 barrels of oil proportionate every day (boe/d), comprising of around 189,000 boe/d from North America, 117,000 boe/d from the UK fragment, 33,000 boe/d from the Scandinavia portion, 92,000 boe/d from Southeast Asia, and 21,000 boe/d from whatever is left of the world. Opportunity : A broadened topographical nearness empowers the organization to lessen business dangers emerging in a specific geology. Shortcomings Absence of scale The organization does not have the coveted scale to rival extensive players in the business. A considerable lot of the organization's rivals are significantly bigger in measure as far as income created, number of representatives, and their quality in Europe and other creating market. One of its key rivals, British Petroleum (BP), produced incomes of about $288,951 million and utilized around 97,600 individuals worldwide for the budgetary year finished December 2007 (FY2007). Another key contender of the organization Exxon Mobil Corporation (Exxon Mobil) produced incomes of about $390,328 million and utilized 81,000 individuals as on FY2007. Be that as it may, Talisman produced incomes of about C$7,919 million amid the FY2008, and utilized around 2,600 individuals worldwide as of FY2008. Issue : Owing to its moderately little size of activities, the organization could think that its hard to confront rivalry. High obligation The organization has a lot of obligation. For the FY2008, the organization has a remarkable obligation of C$3,949 million. Despite the fact that it is a decline of 9% from FY2007 which remained at CAD$4,341 million, this figure is still high particularly amid the credit crunch. The organization's significant obligation could restrict its capacity to get extra financing to work its business. Further, it would make it troublesome for the organization to fulfill its commitments including making interest installments on obligation commitments. Openings Acquisitions and assentions The organization has been extending its geographic reach through acquisitions and understandings. In January 2008, Talisman reported that one of its auxiliaries have obtained every one of the offers of CNOOC Wiriagar Overseas from a backup of CNOOC for a thought of $212.5 million. CNOOC Wiriagar Overseas holds a 3.06% enthusiasm for the Tangguh LNG Project. The Tangguh LNG Project, situated in West Papua, Indonesia, comprises of various seaward gas wells, generation offices, pipelines, and LNG plant offices with a nameplate limit of 7.6 million tons for every year. In June 2008, two entirely possessed auxiliaries of Talisman Energy went into concurrences with the Kurdistan Regional Government (KRG) inside Iraq for advantages in Blocks K44 and K39 individually. Around the same time, Talisman Energy declared that its completely possessed restricted organization FEI Shale (Fortuna) achieved consent to win up to a 33% working enthusiasm for US properties claimed by Hallwood Energy (Hallwood). Endless supply of the capital program, Fortuna will have earned a 33% enthusiasm for considerably the majority of Hallwood's benefits, incorporating properties in Texas, Arkansas, and Louisiana, for an aggregate of 108,000 sections of land (net to Fortuna). These understandings and acquisitions would furnish Talisman with development openings and drive its income development. New oil and gas creation New oil and gas creation Talisman Energy has extensively expanded its oil and gas generation as of late. In December 2008, Talisman (Vietnam 46/02), a completely possessed auxiliary of Talisman, reported first oil generation from the Song Doc field in Block 46/02 seaward Vietnam. Net creation from five pre-penetrated wells is relied upon to achieve around 25,000 bbls/d by mid 2009. An extra three advancement wells are right now being bored. Charm's offer of demonstrated and likely holds in the Song Doc field is assessed at six million barrels (mmbbls), with demonstrated stores of three mmbbls. Charm Energy declared first gas creation from the Rev Field in Norway, in January 2009. The field is normal t>GET ANSWER