Question 2: Traffic Control Systems makes bright rubber traffic cones. The company has two departments, Melting...

Question 2:

Traffic Control Systems makes bright rubber traffic cones. The company has two departments, Melting and Forming. Raw materials are introduced at various stages throughout the melting process. The following is the department’s work in process T-Account for August:

Work in Process – Melting Department
Aug 1 balance: (200 kilograms; 80% complete as to materials, 70% complete as to conversion)	352	Completed and transferred to the packaging department (_?_ kilograms)	___?___
Costs added:
Materials (2,050 kilograms)	890
Labour	400
Overhead	2,000

Aug 31 balance (40 kilograms, 50% complete as to materials, 60% complete as to conversion)	___?___

The August 1 work in process includes material of $100, labour of $52, and overhead of $200.

Required:

Using the weighted average method, prepare a production cost report for the company.

Question 2:

Traffic Control Systems makes bright rubber traffic cones. The company has two departments, Melting and Forming. Raw materials are introduced at various stages throughout the melting process. The following is the department’s work in process T-Account for August:

Work in Process – Melting Department
Aug 1 balance: (200 kilograms; 80% complete as to materials, 70% complete as to conversion)	352	Completed and transferred to the packaging department (_?_ kilograms)	___?___
Costs added:
Materials (2,050 kilograms)	890
Labour	400
Overhead	2,000

Aug 31 balance (40 kilograms, 50% complete as to materials, 60% complete as to conversion)	___?___

The August 1 work in process includes material of $100, labour of $52, and overhead of $200.

Required:

Using the weighted average method, prepare a production cost report for the company.

Expert Solution

Statement of Equivalent Units
	Materials	Conversion Cost
Completed & Transferred to packaging Department	2,210	2,210
(200 + 2,050 - 40 )
Work in Process- Aug .31 ( 40 Kg -50% M, 60% -C )	20	24
Equivalent units of production	2,230	2,234

Cost per Equivalent Units
	Materials	Conversion Cost
Cost on Aug .1	100	252
Add: Cost incurred during August	890	2,400
Total Costs to be account for	990	2,652
/ Equivalent units of production	2,230	2,234
Cost per Equivalent Units $	0.4439	1.1871

Cost Assigned to

Completed & Transferred to packaging Department	3,605	=22100.4439+22101.1871

Work in Process -Aug 31	37	=200.4439+241.1871

Total Cost Accounted for	$ 3,642

ekkarill92 answered 1 year ago

Question 1: Company has two departments. Its first department (the Melting Department) shows the following data...

Question 1: Company has two departments. Its first department (the Melting Department) shows the following data for the month of April: Work in process, beginning: Units in process 400 Stage of completion with respect to materials 60% Stage of completion with respect to conversion 85% Costs in the beginning inventory: Materials cost $170 Labour cost $160 Overhead cost $300 Units started into production during the month 1,100 Units completed and transferred out 1,400 Costs added to production...

MVP Company has two departments. Its first department (the Melting Department) shows the following data for...

MVP Company has two departments. Its first department (the Melting Department) shows the following data for the month of August: Work in process, beginning: Units in process 400 Stage of completion with respect to materials 60%Stage of completion with respect to conversion 85% Costs in the beginning inventory: Materials cost $170 Labour cost $160 Overhead cost $300 Units started into production during the month 1,100Units completed and transferred out 1,400Costs added to production during the month: Materials cost $1,300 Labour...

Question 2 Alexia Muchala Ltd has two production departments, A and B, and two service departments,...

Question 2 Alexia Muchala Ltd has two production departments, A and B, and two service departments, X and Y. The budgeted activity levels for June 2020 were thus: A 2000 hours N$ 80,000 B 12,000 hours N$ 48,000 The service departments are apportioned thus: X 70% to A 20% to B 10% to Y Y 50% to A 30% to B 20% to X During June 2020 the actual results were: A 2100 hours N$ 60,000 B 11,500 hours N$...

ABC Company operates two service departments, quality control and maintenance, and two production departments, cutting and...

ABC Company operates two service departments, quality control and maintenance, and two production departments, cutting and finishing. Service department costs are allocated to production departments using a sequential two-stage allocation method. Quality control department costs are allocated on the basis of number of inspections and maintenance department costs are allocated on the basis of machine hours. In the second stage, departmental overhead rates for the two production departments are calculated using direct labor hours as the activity for each department....

Data for the next 2 questions: Tamara Company sells two types of control systems – Basic...

Data for the next 2 questions: Tamara Company sells two types of control systems – Basic and Deluxe - as follows: Selling price per unit Variable expense per unit Basic $120 $90 Deluxe $280 $220 Fixed monthly expenses total $300,000. The expected sales mix in units is 60% for product Basic and 40% for Deluxe. 1. How many units of each product must be sold each month in order to breakeven? 2. How many units of each product must be...

Acme Food Ltd. company makes TWIXIE chocolate bars. The company has two processing departments: Baking and...

Acme Food Ltd. company makes TWIXIE chocolate bars. The company has two processing departments: Baking and Mixing. In the Baking Department, the raw ingredients for the one side is made as well as the ingredients for the other side in specially made vats that separate the two sides of the candy bar. In the Mixing Department, the melted chocolate and other ingredients from the Baking Department are carefully packaged into decorative wrapping done by hand. The company uses a process...

Question with regards to Statistical Process Control. Control chart systems can operate on two basic methods...

Question with regards to Statistical Process Control. Control chart systems can operate on two basic methods of measurement. State these two methods and briefly distinguish between them, giving three examples of industrial processes where each might be applied. Specify an appropriate sampling procedure in each case.

Superman Store has two support departments, Information Systems and Personnel. The Information Systems Department costs are...

Superman Store has two support departments, Information Systems and Personnel. The Information Systems Department costs are allocated on the basis of hours used. The Personnel Department costs are allocated based on the number of employees. Data on information systems hours used and number of employees are as follows: Information Allocation Bases: Systems Personnel Fruit Nut Total cost $120,000 $30,000 $60,000 $90,000 Information systems hours used 600 600 720 480 Number of employees 10 20 40 120 a. Write the equations needed to allocate support department costs using the reciprocal method. b. Solve for the total cost to be allocated under...

Protein Bars has two support departments, Information Systems and Personnel. The Information Systems Department costs of...

Protein Bars has two support departments, Information Systems and Personnel. The Information Systems Department costs of $120,000 are allocated on the basis of hours used. The Personnel Department costs of $30,000 are allocated based on the number of employees. Costs of the two operating departments are $60,000 for Fruit Bars and $90,000 for Nut Bars. Data on information systems hours used and number of employees are as follows: information hours used = info 600, personnel 600, fruit 720, nut 480....

Anders Company has two producing departments - Cutting and Sewing - and two support departments -...

Anders Company has two producing departments - Cutting and Sewing - and two support departments - Maintenance and General Factory (GF). Anders provided the following information on the four departments: Maintenance General Factory Cutting Sewing Direct overhead costs $10,000 $270,000 $56,400 $75,000 Machine hours 459 2,000 9,000 9,000 Square footage 2,500 3,418 5,000 8,500 The company does not break overhead into fixed and variable components. The bases for allocation are maintenance - machine hours; general factory - square feet. 1....

Question