Question

In: Accounting

a. a. For May 2020, the cost of Direct Materials transferred into the Filling Dept. of...

a.

a. For May 2020, the cost of Direct Materials transferred into the Filling Dept. of a liquid soap company is $20,200. Direct Labor cost incurred for the same department is unknown, and Factory Overhead cost applied to production is 80% of Direct Labor cost. The total cost of finished goods transferred out of the Filling Dept. is $85,600. The cost of beginning work in process (WIP) inventory in the Filling Dept. on May 1 was $12,000 and the ending balance in WIP Inventory-Filling on May 31 is $6,000. Calculate the cost of Direct Labor incurred by the Filling Dept. during May 2020.

b. The following data is taken from the production budget for the year: Beginning finished goods units 11,000; Units to be produced in the first quarter 82,000; First quarter sales units 58,000; Sales units budgeted for the second quarter 68,000. Second quarter finished goods inventory is budgeted at 12,000 units. Calculate units to produce in the second quarter.

Solutions

Expert Solution

a. Computation of cost of Direct Labor incurred by the Filling Dept. during May 2020:

Let Direct labor Cost = X

Therefore, factory overhead = 0.8X

As we know that:

Total cost of finished goods transferred out of the Filling Dept = Opening Work in progress + Direct Material Cost + Labour Cost + Factory Overhead - Closing Work in progress

$85,600 = $12,000 + $20,200 + X + 0.8X - $6,000

$85,600 - $12,000 - $20,000 + $6,000 = 1.8X

Therefore, X = $33,000

Hence, Direct Labor incurred by the Filling Dept. during May 2020 = $33,000.

b. Computation of units to produce in the second quarter:

To compute the no of units to be produced in the second quarter, we will first need to compute the ending inventory of first quarter which will be done as follows;

We know that:

Sales units = Opening units + Production - Closing units

58,000 = 11,000 + 82,000 - Closing units

Therefore, closing stocks at the end of first quarter = 35,000

Now for the second quarter,

Sales units = Opening units + Production - Closing units

68,000 = 35,000 + Production - 12,000

Therefore, production for the second quarter = 45,000 units

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The cost of materials transferred into the Filling Department of Eve Cosmetics Company is $19,900, including...
The cost of materials transferred into the Filling Department of Eve Cosmetics Company is $19,900, including $5,400 from the Blending Department and $14,500 from the materials storeroom. The conversion cost for the period in the Filling Department is $6,440 ($1,440 factory overhead applied and $5,000 direct labor). The total cost transferred to Finished Goods for the period was $25,640. The Filling Department had a beginning inventory of $2,600. Required: A. (1) On June 30, journalize the cost of transferred-in materials.*...
In the Mixing Dept., the direct materials are added at the beginning of the process and...
In the Mixing Dept., the direct materials are added at the beginning of the process and the conversion costs are incurred evenly throughout the process. Work in process of the mixing Dept. on March 1, 2018 consisted of 900 batches of crayons that were 60% of the way through the production process. The beginning balance in WIP Inventory - Mixng was $30,700 which consited of $11,500 in direct materias cost and $19,200 in conversion costs. During March, 4600 batches were...
Transferred-In Cost Golding's finishing department had the following data for July: Transferred-In Materials Conversion Units transferred...
Transferred-In Cost Golding's finishing department had the following data for July: Transferred-In Materials Conversion Units transferred out 60,000 60,000 60,000 Units in EWIP 13,000 11,000 9,000   Equivalent units 73,000 71,000 69,000 Costs:   Work in process, July 1:     Transferred-in from fabricating $2,100     Materials 1,500     Conversion costs 3,000       Total $6,600   Current costs:     Transferred-in from fabricating $30,900     Materials 22,500     Conversion costs 45,300       Total $98,700 Required: 1. Calculate unit costs for the following categories: transferred-in, materials, and conversion. Round your answers to the nearest...
What was the amount of Direct Materials and Direct labor used in May?
Woodcarving company incurred the following costs during May : Conversion cost $ 479,500 Prime cost $ 406250 Manufacturing overhead $321500
The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve...
The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve Cosmetics Company are $2.40 and $2.65, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, beginning of period 0 3,400 Started and completed during the period 49,000 49,000 Transferred out of Filling (completed) 49,000 52,400 Inventory in process, end of period 4,000 2,000 Total units to be assigned costs 53,000 54,400 The beginning work...
Direct materials are added uniformly throughout a process. Direct materials cost, BWIP $25,000 Direct materials per...
Direct materials are added uniformly throughout a process. Direct materials cost, BWIP $25,000 Direct materials per equivalent unit $3.97 Completed and transferred out units 25,950 7,500 units were 35% complete with respect to direct materials in ending WIP. Using the weighted average method, which of the following is TRUE ? Answers: a. Direct materials cost attributed to units completed and transferred out: $128,021.50 Direct materials cost attributed to units in ending inventory: $29,775.00 b. Direct materials cost attributed to units...
Cost Flows in a Job Cost System Materials Work in Process-Assembly Dept Work in Process- Test...
Cost Flows in a Job Cost System Materials Work in Process-Assembly Dept Work in Process- Test & Packaging Dept Finished Goods Beg Inventory + Purchases Direct Materials End Inventory Job#1, Job#2 Job#3, Job#4 Beg Inventory Cost of Units + Direct Materials transferred out + Direct Labor Job#1,#2,#3,#4 + Factory Overhead applied Job#1,#2,#3,#4 End Inventory Job#4 Job#1, Job#2 Job#3 Beg Inventory Cost of Units + Cost of units transferred out transferred in + Direct Labor Job#1,#2,#3 + Factory Overhead applied Job#1,#2,#3...
Direct Materials Variances The following data relate to the direct materials cost for the production of...
Direct Materials Variances The following data relate to the direct materials cost for the production of 1,900 automobile tires: Actual: 57,600 lbs. at $1.7 per lb. Standard: 56,400 lbs. at $1.65 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance $ Direct Materials Quantity Variance $...
Direct Materials Variances The following data relate to the direct materials cost for the production of...
Direct Materials Variances The following data relate to the direct materials cost for the production of 2,200 automobile tires: Actual: 56,600 lbs. at $1.95 per lb. Standard: 54,900 lbs. at $1.90 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance $ Direct Materials Quantity Variance $...
Direct Materials Variances The following data relate to the direct materials cost for the production of...
Direct Materials Variances The following data relate to the direct materials cost for the production of 2,400 automobile tires: Actual: 57,900 lbs. at $1.7 per lb. Standard: 56,700 lbs. at $1.75 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance $ Direct Materials Quantity Variance $...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT