Question

1) Department G had 1,800 units 25% completed at the beginning of the period, 12,800 units were completed during the period; 1,500 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period:

Work in process, beginning of period	$26,500
Costs added during period:
Direct materials (12,500 units at $9)	112,500
Direct labor	88,200
Factory overhead	29,400

All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. What is the total cost of the units started and completed during the period (round unit cost calculations to four decimal places and round your final answer to the nearest dollar)?

a.$99,000

b.$221,713

c.$180,809

d.$201,261

2) Department A had 4,700 units in Work in Process that were 79% completed at the beginning of the period at a cost of $7,600. During the period, 39,200 units of direct materials were added at a cost of $94,080, and 41,800 units were completed. At the end of the period, 2,100 units were 35% completed. All materials are added at the beginning of the process. Direct labor was $26,100 and factory overhead was $6,000. The cost of the 2,100 units in process at the end of the period if the first-in, first-out method is used to cost inventories was

a.$5,648

b.$6,256

c.$5,344

d.$5,040

3) The Thomlin Company forecasts that total overhead for the current year will be $11,333,000 with 168,000 total machine hours. Year to date, the actual overhead is $7,810,000 and the actual machine hours are 95,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is

Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.

a.$1,878,500 overapplied

b.$1,445,000 underapplied

c.$1,878,500 underapplied

d.$1,445,000 overapplied

4) . Reynolds Manufacturers Inc. has estimated total factory overhead costs of $123,600 and expected direct labor hours of 10,300 for the current fiscal year. If job number 117 incurs 1,310 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for

a.$1,310

b.$61,800

c.$15,720

d.$123,600

Answer 1

1
	Materials	Conversion costs
Work in process, beginning of period	0	1350
Units started and complete	11000	11000
Work in process, ending of period	1500	300
Equivalent units of production	12500	12650
	Materials	Conversion costs
Costs added during period	112500	117600
Divided by Equivalent units of production	12500	12650
Cost per Equivalent unit of production	9	9.2964
Total cost of the units started and completed = 11000*(9+9.2964)= $201261
2
	Materials	Conversion costs
Work in process, beginning of period	0	987
Units started and complete	37100	37100
Work in process, ending of period	2100	735
Equivalent units of production	39200	38822
	Materials	Conversion costs
Costs added during period	94080	32100
Divided by Equivalent units of production	39200	38822
Cost per Equivalent unit of production	2.4	0.8269
Cost of the 2,100 units in process at the end of the period=(2100*2.4)+(735*0.8269)= $5648
3
Predetermined overhead rate = 11333000/168000= $67
Overhead applied = 95000*67 = $6365000
Overhead underapplied = 7810000-6365000 = $1445000 underapplied
4
Work in Process will be debited and Factory Overhead will be credited for = 123600/10300*1310= $15720