Question

In: Accounting

Figure 6-20 Outrageous Cups Corp. manufactures cups. The company's manufacturing operations and costs applied to products...

Figure 6-20

Outrageous Cups Corp. manufactures cups. The company's manufacturing operations and costs applied to products for April were:

Molding          Heat-treat        Finishing

Direct labor                 $25,000           $12,500           $ 7,500

Factory overhead        30,000             17,500             12,600

Total                            $55,000           $30,000           $20,100

Three types of cups were produced in April. The quantities and direct materials costs were:

Type                Quantity          Direct Materials

Casts               5,000               $15,000

Cups                7,000               22,470

Mugs               8,000               32,500

Casts are produced in the Molding Department. Cups pass through the Molding and Finishing Departments. Mugs pass through all three departments. An operations costing system is used.

38. Refer to Figure 6-20. What is Outrageous Cups' conversion cost per unit for the heat-treat operation, rounded to two decimal places?

a. $1.50

b. $2.00

c. $2.50

d. $3.75

39. Refer to Figure 6-20. What is Outrageous Cups' total cost for Casts in April?

a. $13,750

b. $26,275

c. $28,750

d. $70,000

40. Refer to Figure 6-20. What is Outrageous Cups' total cost per unit for Cups in April?

a. $4.09

b. $7.30

c. $7.84

d. $11.05

Solutions

Expert Solution

1. Outrageous Cups' conversion cost per unit for the heat-treat operation.

As the Mugs is the only product which passes through heat-treat operation, we will consider only mugs to calculate conversion cost of heat trea

Outrageous Cups' conversion cost per unit for the heat-treat operation = Total Conversion cost / No. of Mugs

Outrageous Cups' conversion cost per unit for the heat-treat operation = $30000 / 8000 = $3.75 per unit Option D

2. Outrageous Cups' total cost for Casts in April

As all the three products passes through molding department we will consider all the three to calculate conversion cost in molding department

Conversion cost in Molding department = Total Conversion cost / Total Products = $55000 / 20000 = $2.75

Total Cost of Casts = Direct Material + Conversion cost per unit * No. of Units

Total Cost of Casts = $15000 + $2.75 * 5000

Total Cost of Casts = $28750 Option C

3. Outrageous Cups' total cost per unit for Cups in April

Only Cups passes through Molding and finishing department

conversion cost per unit in Molding department = $2.75

conversion cost per unit in Finishing department = $20100 / 15000 = $1.34

Direct Materail per unit =$22470 / 7000 = $3.21

Total Cost per unit = $2.75 + $1.34 + $3.21 = $7.30 Option B

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Cadburn Corp. uses a job order costing system with manufacturing overhead applied to products on the...
Cadburn Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of direct labor hours. For the upcoming year, Cadburn Corp. estimated total manufacturing overhead cost at $250,000 and total direct labor hours of 50,000. During the year actual manufacturing overhead incurred was $262,500 and 51,000 direct labor hours were used. a. Calculate the predetermined overhead rate. b. Calculate how much manufacturing overhead will be applied to production. c. Is overhead over- or underapplied?...
The manufacturing overhead costs are applied to products on the basis of machine time. Unfortunately, due...
The manufacturing overhead costs are applied to products on the basis of machine time. Unfortunately, due to system glitch, several numbers and labels have been omitted from the analysis of fixed overhead below. Supply the missing numbers and labels to help out: 1) Assume 6 minutes of machine time is standard per unit of production. How many units were actually produced in this situation? Actual Fixed Overhead Cost Flexible Budget Overhead Cost Fixed Overhead Cost Applied to Work in Progress...
What are Pepsi Company's products and operations? Also, what are 5 costs that the company would...
What are Pepsi Company's products and operations? Also, what are 5 costs that the company would probably incur and their cost behavior?
Suppose a company manufactures plastic lids for disposable coffee cups. When the manufacturing process is working...
Suppose a company manufactures plastic lids for disposable coffee cups. When the manufacturing process is working correctly, the diameters of the lids are approximately Normally distributed with a mean diameter of 4 inches and a standard deviation of 0.02 inches. You can assume the diameter of each lid is independent from the diameter of other lids produced. Show your work for each part. a) What percentage of lids off the production line have a diameter less than 4.01 inches? b)...
A company's budgeted manufacturing costs for 75,000 units are as follows:
A company's budgeted manufacturing costs for 75,000 units are as follows: Fixed manufacturing costs $15,000 Variable manufacturing costs $18.00 per unit The company produced 70,000 units. Under a flexible budget, how much are budgeted total manufacturing costs? $1,380,000 $1.260,000 $1,365,000 $1,275,000
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $51,700 and its total manufacturing overhead cost to be $98,230. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required: 2. Fill in the missing values in...
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $54,800 and its total manufacturing overhead cost to be $98,640. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required: 1. Calculate the predetermined overhead rate. 2....
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $50,300 and its total manufacturing overhead cost to be $90,540.      Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow:             Required: 1. Calculate the predetermined overhead rate.                  2. Fill in...
Carl corp. manufactures three products and allocates joint costs at its relative sales value of split-off...
Carl corp. manufactures three products and allocates joint costs at its relative sales value of split-off point. The following joint product cost were incurred for the current period. Raw materials $180,000 Direct labor $120,000 Factory Overhead $200,000 The following production data were provided by Carl corp. for current period: Product Name                   Unit Produced SP at SOP Separable Cost Final SP Milk 10,000 $ 20.00 $ 50,000 $ 24 Flour 20,000 $ 15.00 $ 60,000 $ 18 Butter 30,000 $ 12.50...
The cost formulas for Swan Company's manufacturing overhead costs are given below. The costs cover a...
The cost formulas for Swan Company's manufacturing overhead costs are given below. The costs cover a range of 20,000 to 40,000 machine-hours. Overhead Costs Cost Formula utilities $20,600 plus $0.10 per machine-hour maintenance $40,000 plus $1.60 per machine-hour supplies $0.30 per machine-hour indirect labor $130,000 plus $0.70 per machine-hour depreciation $70,000 Required: Prepare a flexable manufacturing overhead budget assuming a budgeted level of activity of 30,000 machine-hours. Include all costs in your flexable budget. Per Unit Total Variable Costs: _________...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT