Question
In: Accounting
The Capital Corporation prepared the following production cost report for Department 1 for October of the...
The Capital Corporation prepared the following production cost report for Department 1 for October of the current year.
Work in process inventory, October 1 2,000 units
Units started in production in October 7,000 units
Units transferred to finished goods inventory during October 6,900 units
Beginning work in process consisted of the following:
Direct materials $3,600
Direct labor $1,800
Manufacturing overhead $1,400
$6,800
Costs incurred in October
Direct materials $12,600
Direct labor $22,688
Manufacturing overhead $20,600
$55,888
Work in process inventory on October 31 is 100% complete as to direct materials and 60% complete as to conversion.
Compute Cost of Production Report for the month.
Solutions
Expert Solution
Solution :
| Computation of Equivalent unit of Production - Weighted Average | |||
| Particulars | Physical Units | Material | Conversion |
| Unit completed & Transferred out | 6900 | 6900 | 6900 |
| Closing WIP: (2000 + 7000 - 6900) | 2100 | ||
| Material (100%) | 2100 | ||
| Conversion (60%) | 1260 | ||
| Equivalent units of production | 9000 | 9000 | 8160 |
| Computation of Cost per equivalent unit of Production - Weighted Average | ||
| Particulars | Material | Conversion (Direct labor + MOH) |
| Opening WIP | $3,600.00 | $3,200.00 |
| Cost Added during October | $12,600.00 | $43,288.00 |
| Total cost to be accounted for | $16,200.00 | $46,488.00 |
| Equivalent units of production | 9000 | 8160 |
| Cost per Equivalent unit | $1.80 | $5.70 |
| Computation of Cost of ending WIP and units completed & transferred out - Weighted Average | |||
| Particulars | Material | Conversion | Total |
| Equivalent unit of Ending WIP | 2100 | 1260 | |
| Cost per equivalent unit | $1.80 | $5.70 | |
| Cost of Ending WIP (Equivalent unit * Cost per equivalent unit) | $3,780 | $7,178 | $10,958 |
| Units completed and transferred | 6900 | 6900 | |
| Cost of units completed & Transferred (Unit completed * cost per equivalent unit) | $12,420 | $39,310 | $51,730 |
| Production cost report - Weighted Average | |
| Particulars | Amount |
| Costs to be accounted for: | |
| Cost of beginning WIP inventory ($3,600 + $3,200) | $6,800.00 |
| Cost added to production ($12,600 + $43,288) | $55,888.00 |
| Total Cost to be accounted for | $62,688.00 |
| Costs accounted for as follows: | |
| Cost of unit transferred out | $51,730 |
| Ending WIP: | |
| Material | $3,780 |
| Converison | $7,178 |
| Total cost accounted for | $62,688 |
ekkarill92 answered 1 year agoRelated Solutions
The Finishing Department of Pinnacle Manufacturing Co. prepared the following factory overhead cost budget for October...
The Finishing Department of Pinnacle Manufacturing Co. prepared
the following factory overhead cost budget for October of the
current year, during which it expected to operate at a 100%
capacity of 10,000 machine hours.
Variable costs:
Indirect factory wages
$18,000
Power and light
12,000
Indirect materials
4,000
Total variable
cost
$34,000
Fixed costs:
Supervisory salaries
$12,000
Depreciation of plant and
equipment
8,800
Insurance and property taxes
3,200
Total fixed cost
24,000
Total factory overhead
$58,000
During October, the plant was...
Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October...
Leno Manufacturing Company prepared the following factory
overhead cost budget for the Press Department for October of the
current year, during which it expected to require 14,000 hours of
productive capacity in the department: Variable overhead costs:
Indirect factory labor $130,200 Power and light 6,300 Indirect
materials 40,600 Total variable overhead cost $177,100 Fixed
overhead costs: Supervisory salaries $61,990 Depreciation of plant
and equipment 38,960 Insurance and property taxes 24,790 Total
fixed overhead cost 125,740 Total factory overhead cost $302,840...
Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October...
Leno Manufacturing Company prepared the following factory
overhead cost budget for the Press Department for October of the
current year, during which it expected to require 10,000 hours of
productive capacity in the department:
Variable overhead cost:
Indirect factory labor
$76,000
Power and light
4,400
Indirect materials
26,000
Total variable overhead
cost
$106,400
Fixed overhead cost:
Supervisory salaries
$37,240
Depreciation of plant and equipment
23,410
Insurance and property taxes
14,900
Total fixed overhead
cost
75,550
Total factory overhead cost
$181,950...
Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October...
Leno Manufacturing Company prepared the following factory
overhead cost budget for the Press Department for October of the
current year, during which it expected to require 18,000 hours of
productive capacity in the department:
Variable overhead cost:
Indirect factory labor
$165,600
Power and light
5,400
Indirect materials
54,000
Total variable overhead
cost
$225,000
Fixed overhead cost:
Supervisory salaries
$78,750
Depreciation of plant and equipment
49,500
Insurance and property taxes
31,500
Total fixed overhead
cost
159,750
Total factory overhead cost
$384,750...
Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October...
Leno Manufacturing Company prepared the following factory
overhead cost budget for the Press Department for October of the
current year, during which it expected to require 8,000 hours of
productive capacity in the department: Variable overhead cost:
Indirect factory labor $70,400 Power and light 2,400 Indirect
materials 19,200 Total variable overhead cost $92,000 Fixed
overhead cost: Supervisory salaries $32,200 Depreciation of plant
and equipment 20,240 Insurance and property taxes 12,880 Total
fixed overhead cost 65,320 Total factory overhead cost $157,320...
1. Cost of Production Report The Cutting Department of Karachi Carpet Company provides the following data...
1. Cost of Production Report
The Cutting Department of Karachi Carpet Company provides the
following data for January. Assume that all materials are added at
the beginning of the process.
Work in process, January 1, 12,800 units, 55% completed
$142,528*
*Direct materials (12,800 × $8)
$102,400
Conversion (12,800 × 55% × $5.7)
40,128
$142,528
Materials added during January from Weaving Department, 197,200
units
$1,587,460
Direct labor for January
494,424
Factory overhead for January
604,296
Goods finished during January (includes goods...
Urban Corporation prepared the following variance report.
Urban Corporation prepared the following variance report.Fill in the missing amounts or letters in the report. (Round actual and standard price answers to 2 decimal places, e.g. 2.75.)
URBAN CORPORATIONVariance Report—Purchasing DepartmentFor Week Ended January 9, 2020
Type ofMaterials
QuantityPurchased
ActualPrice
StandardPrice
PriceVariance
Explanation
Rogue11
lbs.
$5.20
$4.95
$6,525
Neither favorable nor unfavorableUnfavorableFavorable...
1. Which of the following is not a cost center? An accounting department A Production department...
1. Which of the following is not a cost
center?
An accounting department
A Production department
A retail sales depot
A maintenance department
2. An Investment center is responsible for:
Investing in long term assets.
Controlling costs.
Generating revenues.
All of the above.
3. A Profit center is responsible for all of the following
except:
Investing in long term assets
Controlling costs.
Generating revenues.
All of the above are the responsibility of a profit
center.
4. A cost center is...
Cost of Production Report The Cutting Department of Karachi Carpet Company provides the following data for...
Cost of Production Report
The Cutting Department of Karachi Carpet Company provides the
following data for January. Assume that all materials are added at
the beginning of the process.
Work in process, January 1, 7,600 units, 80% completed
$82,688*
*Direct materials (7,600 ×
$8.00)$60,800
Conversion (7,600 × 80% ×
$3.60)21,888
$82,688
Materials added during January from Weaving Department, 117,200
units $949,320
Direct labor for January 181,613
Factory overhead for January 221,972
Goods finished during January (includes goods in process,
January...
Cost of Production Report The Cutting Department of Tangu Carpet Company provides the following data for...
Cost of Production Report
The Cutting Department of Tangu Carpet Company provides the
following data for December 2016. Assume that all materials are
added at the beginning of the process.
Work in process, December 1, 11,400 units, 60% completed
$146,376*
*Direct materials (11,400 × $10.2)
$116,280
Conversion (11,400 × 60% × $4.4)
30,096
$146,376
Materials added during December from Weaving Department,
175,600 units
$1,808,680
Direct labor for December
350,548
Factory overhead for December
428,447
Goods finished during December (includes goods...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- In 1941, President Roosevelt spoke about the “four freedoms.” For many in the country, however, these...
- Your friend is looking for investors in a risky business venture. To convince you to participate,...
- Suppose you observe the following situation: State of Economy Probability of State Return if State Occurs...
- Merger Analysis TransWorld Communications Inc., a large telecommunications company, is evaluating the possible acquisition of Georgia...
- Journal Entries and Trial Balance Elite Realty acts as an agent in buying, selling, renting, and...
- In racket Assume that the elements of a list are indexed starting with 1. Write a...
- Describe System Development Life Cycle (SDLC) and how it is used.
ADVERTISEMENT