In: Accounting
The Work in Process Inventory account for DG Manufacturing
follows. Compute the cost of jobs completed and transferred to
Finished Goods Inventory.
Work in Process Inventory | |||
Beginning WIP | 5,200 | ||
Direct materials | 47,800 | ||
Direct labor | 30,300 | ||
Applied Overhead | 16,500 | ||
Total Manufacturing Costs | 99,800 | ||
To Finished Goods | ? | ||
Ending WIP | 10,300 |
The cost of units transferred to finished goods is:
17-Following is a partial process cost summary for Mitchell Manufacturing's Canning Department.
Equivalent Units of Production | Direct Materials | Conversion | |||||||||
Units Completed and transferred out | 72,000 | 72,000 | |||||||||
Units in Ending Work in Process: | |||||||||||
Direct Materials (15,000 * 100%) | 15,000 | ||||||||||
Conversion (15,000 * 80%) | 12,000 | ||||||||||
Equivalent Units of Production | 87,000 | 84,000 | |||||||||
Cost per Equivalent Unit | |||||||||||
Costs of beginning work in process | $ | 43,500 | $ | 63,800 | |||||||
Costs incurred this period | 145,300 | 195,400 | |||||||||
Total costs | $ | 188,800 | $ | 259,200 | |||||||
Cost per equivalent unit | $ | 2.17 | per EUP | $ | 3.09 | per EUP | |||||
The total materials costs transferred out of the Canning Department
equals:
Multiple Choice
$188,790.
$182,280.
$188,800.
$222,480.
$156,240.
18-Lowden Company has an overhead application rate of 156% and allocates overhead based on direct material cost. During the current period, direct labor cost is $59,000 and direct materials used cost $89,000. Determine the amount of overhead Lowden Company should record in the current period.
Multiple Choice
$57,051.
$89,000.
19-The B&T Company's production costs for May are: direct labor, $15,000; indirect labor, $6,700; direct materials, $15,200; property taxes on production facility, $820; factory heat, lights and power, $1,020; and insurance on plant and equipment, $220. B&T Company's factory overhead incurred for May is:
$2,060.
$8,760.
$6,700.
$38,960.
$21,900.
$37,821.
$59,000.
$138,840.
20-Andrews Corporation uses the weighted-average method of process costing. The following information is available for February in its Polishing Department:
Equivalent units of production—direct materials | 121,000 | EUP | |
Equivalent units of production—conversion | 104,400 | EUP | |
Costs in beginning Work in Process—direct materials | $ | 64,600 | |
Costs in beginning Work in Process—conversion | $ | 47,500 | |
Costs incurred in February—direct materials | $ | 546,300 | |
Costs incurred in February—conversion | $ | 686,200 | |
The cost per equivalent unit of production for direct materials
is:
Multiple Choice
$4.51
$5.85
$10.19
$5.67
$5.05
21-Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $2,310,000 (210,000 hours at $11/hour) and that factory overhead would be $1,510,000 for the current period. At the end of the period, the records show that there had been 190,000 hours of direct labor and $1,210,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead rate? (Round your answer to two decimal places.)
Multiple Choice
$7.95 per direct labor hour.
$6.43 per direct labor hour.
$6.84 per direct labor hour.
$7.19 per direct labor hour.
$5.76 per direct labor hour.
Question 21 : | |||||
Number of direct labour hours | 210000 hours | ||||
Factory overhead = $1510000 | |||||
Pre determined overhead rate is calculated by dividing the total overhead cost using a suitable basis, in this question basis is given as per labour hours, so.. | |||||
Pre determined overhead rate= Total overhead cost/ Number of Direct labour hours | |||||
1510000/210000 | |||||
$ 7.19 | Per direct labour hour. | ||||
Question 20 : | |||||
The cost per equivalent unit of production for direct materials is: | |||||
Cost of beginning Wip | 64600 | ||||
add ; cost incurred in February | 546300 | ||||
Total cost (a) | 610900 | ||||
Equivalent units of production (b) | 121000 units | ||||
Cost per equivalent unit of production (a)/(b) | $ 5.05 | Per unit | |||
Question 19: | |||||
Factory overhead includes : | |||||
Indirect labor | 6700 | ||||
Property taxes on production equipment | 820 | ||||
Heat light and power | 1020 | ||||
Insurance on plant and equipment | 220 | ||||
Factory overhead for May | 8760 | ||||
Question 18 : | |||||
Overhead rate = 156% | |||||
Basis of allocation of overhead = Direct material cost | |||||
Direct material cost = $89000 | |||||
Overhead in the current period = $89000 x 156% | |||||
= $138840 | |||||
Thus answer will be $138840 | |||||
Question 16: | |||||
Cost of units transferred to finished goods = Beginning WIP + Direct materials+ Direct labour + Applied overheads-Ending WIP = 5200+47800+30300+16500-10300 | |||||
$ 89,500.00 | |||||
Question 17 : | |||||
conversion cost per EUP = $ 2.17 | |||||
units transferred out = 72000 units | |||||
So conversion cost transferred out = 2.17*72000 | $ 156,240.00 | ||||
$ 156240 is correct | |||||