In: Accounting
The following is a summary of the May 2016 operations of Reagan Company that makes and sells airplane models. Suppose that the company uses the FIFO method.
Physical Units |
Direct Materials |
Conversion Costs |
|
WIP, beginning inventory |
28,000 |
$39,200 |
$30,800 |
Degree of completion for BI |
100% |
25% |
|
Started in May |
60,000 |
||
Completed and transferred out in May |
66,000 |
||
WIP, ending inventory |
22,000 |
||
Degree of completion for EI |
100% |
50% |
|
Costs added in May |
$90,000 |
$280,000 |
1.What is the amount of direct materials cost assigned to ending WIP at the end of May?
Group of answer choices
$39,200
$44,000
$22,000
$33,000
2.
What is the cost of goods transferred out during May?
Group of answer choices
$447,000
$517,000
$293,000
$363,000
Norland Company's total overhead budget for 2018 shows variable overhead costs of $36,000 and fixed overhead costs of $32,000. The budgeted output was 25,000 units. Actual total overhead costs incurred in 2018 were $61,400 for an output of 20,000 units.
The total overhead variance for Norland Co. for 2018 was:
Group of answer choices
$6,000 unfavorable
$7,000 unfavorable
$5,800 unfavorable
$6,400 unfavorable