If Dave’s Doors uses the First-in First-out (FIFO) costing system, it is assumed that the first units “available for sale” are the first units sold. Therefore, Dave’s will sell its beginning inventory first, then units that they purchased on 9/4, and then on 9/12 until they have accounted for the 45 units sold. Use the table for Dave’s FIFO Costing to complete the requirements below.

Since the 45 units sold is more than the 24 in beginning inventory, we know that all 24 of the units in inventory were sold. Include the units, cost per unit and Total Costs for beginning inventory in the table above. Use the data in your table from 6) above.

How many doors would Dave’s have sold from the units they purchased on 9/4? _______ Include the units, Cost per unit and Total costs for this row in the table above.

Complete the table determining how many units from each purchase Dave’s would have sold until the total equals the 45 units. Total the column “Total Costs” Hint: The number of units for the 9/18 purchase will be less than the total number purchased on that date.

Write the journal entry to record Dave’s expense.

Assume Dave’s sold these doors to customers for $480 each. Write the journal entry to record Dave’s revenue.

What is Dave’s Gross Margin for the period under the FIFO costing method?

The value of ending inventory can be determined 2 ways. The first method is to subtract the COGS calculated from the “Cost of Goods Available for Sale”.

Cost of Goods Available for Sale           ______________ (2) from Table in 6)

minus COGS                                       - ______________ from 8d)

equals Ending Inventory                        ______________

The other method is to use the number of units in ending inventory and assign costs from the most recent purchases until the number of units have been accounted for. Here, we can assume that all these units come from the purchases made on 9/18. Calculate the ending inventory balance.

# of units in inventory   times   cost per unit (from 9/18 purchase) = ending inventory

   _____________             X              _____________           =      _______________

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WoodGrain Technology makes home office furniture from fine hardwoods. The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Preparation Department is based on machine hours, and the rate in the Fabrication Department is based on direct labor-hours. At the beginning of the year, the company’s management made the following estimates for the year:

Job 127 was started on April 1 and completed on May 12. The company's cost records show the following information concerning the job:

3-b. If the job contained 25 units, what would be the unit product cost? (Round predetermined overhead rate and final answer to 2 decimal places.)

4. At the end of the year, the records of WoodGrain Technology revealed the following actual cost and operating data for all jobs worked on during the year: (Round predetermined overhead rate to 2 decimal places.)

Suppose we have two ways to source a product. One way is from the local supplier, while a second way is from a distant supplier. The terms and parameters for each source are as given in following table:

Suppose demand for the component is μ=500/????; σ=100/????. (Assume normally distributed demand). Suppose we have a holding cost of h=$0.01/week. This applies to all inventory in the system.

Total landed cost per unit (equal to the procurement cost plus transportation cost plus holding cost for pipeline stock) for each source. Local supplier total landed cost (TLC)= 1.28, Distant supplier total landed cost (TLC)=1.24.

Question 1: Suppose we source from a single supplier, and suppose we assume a periodic review policy with r = 1 week; suppose we have a shortage cost ? = 0.30/unit. What is the base stock for each option that minimizes the expected costs? Base Stock for Local Supplier= Base Stock for Distant Supplier=

Question 2: Suppose we follow the base stock policy calculated in question 1. What is the expected total cost per week for each option? The expected total cost is the sum of the procurement cost, the transportation cost, the inventory holding cost for the pipeline inventory plus the cycle stock and safety stock, and the shortage cost. Local Supplier= Distant Supplier=

Question 3: Suppose we implement a dual sourcing strategy, and we place a standing order with the distant supplier for 350 units per week. Suppose it is Jan. 7, 2019, which is a review epoch at which we place an order to the local supplier. The prior orders from both the local and distant supplier have been received and the inventory on hand is 1000 units. There are two orders in process with the local suppler: an order for 75 units to be delivered on Jan. 14, and on order for 100 units to be delivered on Jan. 21. In addition, under the terms of the standing order, the distant supplier will deliver 350 units on Jan. 14, Jan. 21, Jan. 28, etc. Suppose the base stock level for the local supplier is 2370. How much is the local supplier order on Jan. 7 for delivery on Jan. 28?

In December 2016, Shire Computer’s management establishes the 2017 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $741,000 of overhead costs and $570,000 of direct labor cost in year 2017. During March 2017, Shire began and completed Job 13-56.

  
1. What is the predetermined overhead rate for 2017?
2. Using the information on the following job cost sheet, determine the total cost of the job.

Complete this question by entering your answers in the tabs below.

Required 1

Required 2

What is the predetermined overhead rate for 2017?

Using the information on the following job cost sheet, determine the total cost of the job. (Round your answers to the nearest dollar amount.)

Exercise 4-12 (Algo) Equivalent Units; Assigning Costs; Cost Reconciliation—Weighted-Average Method [LO4-2, LO4-4, LO4-5]

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,200 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $706,860 in total. The ending work in process inventory in January consisted of 3,700 units, which were 60% complete with respect to materials and 40% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:

Required:

1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.

2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.

3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.

4. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month.)

Exercise 5-12 Equivalent Units; Assigning Costs; Cost Reconciliation-Weighted-Average Method [LO5-2, LO5-4, LO5-5]

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,500 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $702,656 in total. The ending work in process inventory in January consisted of 3,200 units, which were 70% complete with respect to materials and 50% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:

Required:

1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.

2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.

3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.

4. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month.)

Exercise 4-12 (Algo) Equivalent Units; Assigning Costs; Cost Reconciliation—Weighted-Average Method [LO4-2, LO4-4, LO4-5]

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,300 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $664,858 in total. The ending work in process inventory in January consisted of 3,200 units, which were 40% complete with respect to materials and 20% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:

Required:

1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.

2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.

3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.

4. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month.)

Exercise 5-12 Equivalent Units; Assigning Costs; Cost Reconciliation-Weighted-Average Method [LO5-2, LO5-4, LO5-5] Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,400 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $674,318 in total. The ending work in process inventory in January consisted of 2,900 units, which were 60% complete with respect to materials and 40% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows: Materials Labor Overhead Cost per equivalent unit $ 12.70 $ 4.80 $ 6.70 Required: 1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month. 2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January. 3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January. 4. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month.)

26)

In December 2016, Shire Computer’s management establishes the 2017 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $780,000 of overhead costs and $520,000 of direct labor cost in year 2017. During March 2017, Shire began and completed Job 13-56.

  
1. What is the predetermined overhead rate for 2017?
2. Using the information on the following job cost sheet, determine the total cost of the job.

Complete this question by entering your answers in the tabs below.

Required 1 Required 2

What is the predetermined overhead rate for 2017?

Overhead Rate

Choose Numerator / Choose Denominator = Overhead Rate

Required 2

Using the information on the following job cost sheet, determine the total cost of the job. (Round your answers to the nearest dollar amount.)

Job Cost Sheet: Job No. 13-56

Direct Materials Direct Labor Overhead Total Cost

Date Requisition No. Amount Time- Ticket No. Amount Costs Applied

Mar.8 4-129 $7,000 T-306 $600

Mar.11 4-142 $6,950 T-432 $1,310

Mar.18 4-167 $3,450 T-456 $1,300

Exercise 5-12 Equivalent Units; Assigning Costs; Cost Reconciliation-Weighted-Average Method [LO5-2, LO5-4, LO5-5]

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,200 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $760,760 in total. The ending work in process inventory in January consisted of 4,000 units, which were 80% complete with respect to materials and 60% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:

Required:

1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.

2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.

3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.

4. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month.)