Cost Accounting Units of Production - Excel by lhi58312

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        Process Cost Accounting Handout
1C      EUP using weighted Average
        A company uses weighted-average process costing for the product it manufactures.
        All direct materials are added at the beginning of production.
        Conversion costs are applied evenly during production.
        The following data apply to the past month:
        Assuming no spoilage, equivalent units of conversion costs total

        Total units in begin. Inventory (30% complete as to conversion costs) 1,500                 30%
        Total units transferred to finished goods inventory                   7,400                100%     7,400.00
        Total units in ending inventory (60% complete as to conversion costs) 2,300                 60%     1,380.00
                                                                                                            8,780.00

2B      The following data pertain to a company's cracking-department operations in December.
        Materials are added at the beginning of the process
        Conversion costs are incurred uniformly throughout the process.
        Assuming use of the FIFO method of process costing, the equivalent units of conversion for December were

        Work-in-process, December 1                               Units        Completion
        Units started                                             20,000            50%          (10,000)
        Units completed & transferred to distilling dept.        170,000
        Work-in-process, December 31                             180,000                         180,000
                                                                  10,000              50%          5,000
        EUP for Conversioncosts with LIFO                                                        175,000

3D      The following information pertains to Lap Co.'s Palo Division for the month of April:
        All materials are added at the beginning of the process.
        Using the weighted-average method, what is the cost per equivalent unit for materials?
                                                                            Number of UnitsCost of Materials
        Beginning work-in-process                                                   15,000       5,500
        Started in April                                                            40,000     18,000
        Units completed                                                             42,500
        Ending work-in-process                                                      12,500
        EUP andTotal Materials Costs                                                55,000     23,500
        Cost per EUP                                                         $         0.43
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4A      Information for Ogden's Depart. A for January, for the first stage of production is presented below.
        Materials are added at the beginning of the process.
        The ending work-in-process is 50% complete as to conversion costs.
        How would the total costs accounted for be distributed, using the weighted- average method?
                                                                                  Materials Conversion
        BWIP                                                                        8,000            6,000
        Current costs                                                              40,000           32,000
        Total costs                                                                48,000           38,000
        Equivalent units using weighted-average method                            100,000           95,000
        Average unit costs                                                           0.48             0.40
        Goods completed (Units)                                                    90,000
        EWIP (units)                                                               10,000
        Total cost of completed goods                                           79,200.00
        Total costs of goods in process                                         86,000.00
        Ending WIP                                                               6,800.00

5A      Information for Depart. A for January, for the first stage of production is presented below.
        Materials are added at the beginning of the process.
        The ending work-in-process is 50% complete as to conversion costs.
        How would the total costs accounted for be distributed, using the weighted- average method?
                                                                                  Materials Conversion
        BWIP                                                                        4,000            3,000
        Current costs                                                              20,000           16,000
        Total costs                                                                24,000           19,000
        Equivalent units using weighted-average method                            100,000           95,000
        Average unit costs                                                           0.24             0.20
        Goods completed (Units)                                                    90,000
        EWIP (units)                                                               10,000
        Total cost of completed goods                                           39,600.00
        Total costs of goods in process                                         43,000.00
        Ending WIP                                                               3,400.00

6B                                                             RM                 DL               OH
        Unit Cost perEUP                                      $10                $20          $         10
        Total Units                                            200                200               200
        Completion %                                          50%                50%               50%
        EUP                                                    100                100               100
        Cost                                                 $1,000             $2,000            $1,000
        Total cost of End WIP                                $4,000
        Total Cost of Goods in Process                     $    180,000
        Total cost of goods completed                      $    176,000
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 7C         Lucas Company adds materials in the beginning of the process in the Forming Department,
            which is the first stage of its production cycle.
            Information concerning the Forming Department in October is as follows:
            Using the weighted-average method, what was the materials cost of work in-process at October 31?
                                                                                  Units     RM Costs
              Work-in-process at October 1                                            6,000 $     3,000
              Units started during October                                          50,000 $ 25,000
              Units completed and transferred
               to next Department during October.                                   44,000

            Total units and cost in process                                            56,000 $      28,000
            Cost per EUP (material introduced at start of process)                            $        0.50
            Units completed                                                            44,000
            Units in ending WIP                                                        12,000
            Cost of ending WIP                                                                $       6,000

 8A         Barnett Company adds materials at the beginning of the process in department M.
            The 8,000 units in work-in-process at May 1 were 75% complete for conversion costs.
            The 6,000 units in work-in-process at May 31 were 50% complete as to conversion costs.
            During May 12,000 units were completed and transferred to the next department.
            Costs for work- in-process at May 1 and production activity for May are shown below.
            What was the total cost per equivalent unit for May using the weighted-average method?
                                                                COSTS
                                                                Materials         Conversion
                      Work-in-process, 5/1                              9,600          4,800
                      Costs added in May                               15,600         14,400

            Units Completed                                                                          12,000
            Units in ending WIP                                                                       6,000
            Total Units                                                                              18,000
            Total costs                                               25,200           19,200        44,400
            Cost per EUP                                                                         $     2.47

 9B
10 A
            A company uses the first-in, First-out method of costing in a process-costing system.
            Material is added at the beginning of the process in Department A.
            Conversion costs are incurred uniformly throughout the process.                                   Units        Complete
            Beginning work-in process inventory on April 1 in Department A                                         50000          30%
            During April, 150,000 units were started in Department B.                                             150000

            Ending work-in-process inventory on April 30 in Department A was estimated to be 20% complete.
            What were the total equivalent units in Department A for April for materials and conversion costs , respectively?

11          Missing Information
12          Repeat of Lucas Company
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           Class Handout on Direct Costing
1          Gordon Company
            ABSORPTION COSTING                                               DIRECT COSTING
           Sales                                           $       800,000 Sales                                              $   800,000
           Cost of Sales                                                   Variable Cost of Sales
           Beginning Inventory                                             Begin. Inventory
           Production Costs                                                Production Costs
           1. Direct Materials                  300,000                    1. Direct Materials                    300,000
           2. Direct Labor                      125,000                    2. Direct Labor                        125,000
           3. Variable Overhead                  75,000                    3. Variable Overhead                    75,000
           4. Fixed Overhead                    120,000
           Total                                620,000                    Total                                   500,000
           Ending Inventory                    (124,000)                   Ending Inventory                       (100,000)
            Cost of Sales                                          496,000 Var. Cost of Sales                                     400,000
                                                                           Other Variable Costs:
                                                                             Var. Sell & Adm.                      80,000
                                                                                                                   80,000
                                                                             Total Other Variable Costs........                    80,000

           Gross Profit                                            304,000 Contribution Margin                                    320,000
           Non-Manufacturing                                                 Fixed Manufacturing
           Expenses                                                          and Other Fixed Expenses
           Variable Selling & Admin              80,000                     Fixed Mfg. Overhead                   120,000
           Fixed Selling & Admin.                70,000                     Fixed Admin.and Sales                  70,000
           Total Non-mfg. Expenses                                 150,000  Total Fixed Expenses                                  190,000
           Net Income                                      $       154,000   Net Income                                       $   130,000



2A         Gyro Gear Company produces a special gear used in automatic transmissions.
           Each gear sells for $28, and the Company sells approximately 500,000 gears each year.
           Unit cost data are presented below:
           What is the unit cost of gears for direct-cost-inventory purposes?
           Direct material:                                       $      6.00
           Direct labor                                           $      5.00
              Other costs:                                       Variable     Fixed
           Manufacturing                                          $      2.00  $     7.00
           Distribution                                           $      4.00  $     3.00

           Unit Cost - Direct Costing                          $     13.00
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3 A     Peterson's records for the year ended December 31, show the following.
        There were no work-in-process inventories at the beginning and end of the year.
        What is the finished goods inventory cost at December 31, under direct costing Method?
                                                                                           Solution
        Net sales                                                            $ 1,400,000
        Cost of goods manufactured:                        Variable          $ 630,000 $ 630,000
                                                           Fixed             $ 315,000
        Operating expenses:                                Variable          $ 98,000
                                                           Fixed             $ 140,000
        Cost of goods manufactured:                                                       $ 630,000
        Units manufactured                                                                    70,000
        Cost per unit                                                                        $ 9.00
        Units sold                                                               60,000
        Finished goods inventory, January 1                                    None
        Finished goods inventory, December 31                                    10,000       10,000
        Cost of Ending Inventory                                                          $ 90,000
4C      Operating Income with Absorption Costing
         ABSORPTION COSTING                                             DIRECT COSTING
        Sales                                            $   1,400,000 Sales                                             $ 1,400,000
        Cost of Sales                                                    Variable Cost of Sales
        Beginning Inventory                                              Begin. Inventory
        Production Costs                                                 Production Costs
        1. Variable Costs                    630,000                       1. Variable Costs                  630,000
        2. Fixed Overhead                    315,000
        Total                                945,000                     Total                                630,000
        Ending Inventory                     (135,000)                Ending Inventory                        (90,000)
        Cost of Sales                                         810,000 Var. Cost of Sales                                     540,000
                                                                         Other Variable Costs:
                                                                           Var. Sell & Adm.                    98,000
                                                                                                               98,000
                                                                         Total Other Variable Costs........                   98,000

        Gross Profit                                          590,000 Contribution Margin                                    762,000
        Non-Manufacturing                                               Fixed Manufacturing
        Expenses                                                        and Other Fixed Expenses
        Variable Selling & Admin               98,000                   Fixed Mfg. Overhead                   315,000
        Fixed Selling & Admin.               140,000                    Fixed Admin.and Sales                 140,000
        Total Non-mfg. Expenses                               238,000 Total Fixed Expenses                                   455,000
        Net Income                                       $    352,000 Net Income                                         $   307,000
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5D      During January Gable, produced 10,000 units of product F with cost as follows:
        What is Gable's unit cost of product F for January on the direct costing basis?

        Direct materials                        40,000           40,000
        Direct labor                            32,000           32,000
        Variable overhead                       13,000           13,000
        Fixed overhead                          10,000
                                                95,000
        Direct costs of MFG                                      85,000
        Units Produced                                           10,000
        Unit cost                                           $      8.50
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6          Indiana Corporation began its operations on January 1, and produces a single product that sells for $9.00 per unit.
           Indiana uses an actual (historical) cost system.
           100,000 units were produced and 90,000 units were sold in the year.
           There was no work-in-process inventory at December 31.
           Manufacturing costs and selling and administrative expenses for the year were as follows:
           What would be Indiana's operating income using the direct-costing method?
           Units Produced                           100,000
           Units Sold                                90,000
           Selling price per unit          $            9.00
                                                               Fixed costs Variable costs Variable costs
           Raw materials                                                     $        1.75 per unit produced
           Direct labor                                                      $        1.25 per unit produced
           Factory overhead                                    $ 100,000 $            0.50 per unit produced
           Selling and administrative                          $ 70,000 $             0.60 per unit sold

          ABSORPTION COSTING                                                 DIRECT COSTING
         Sales                                               $      810,000 Sales                                                           $   810,000
         Cost of Sales                                                        Variable Cost of Sales
         Beginning Inventory                                                  Begin. Inventory
         Production Costs                                                     Production Costs
         1. Direct Materials                      175,000                     1. Direct Materials                            175,000
         2. Direct Labor                          125,000                     2. Direct Labor                                125,000
         3. Variable Overhead                      50,000                     3. Variable Overhead                            50,000
         4. Fixed Overhead                        100,000
         Total                                    450,000                     Total                                          350,000
         Ending Inventory                         (45,000)                    Ending Inventory                                   (35,000)
         Cost of Sales                                              405,000   Var. Cost of Sales                                                315,000
                                                                              Other Variable Costs:
                                                                                Var. Sell & Adm.                                 54,000
                                                                                                                                 54,000
                                                                              Total Other Variable Costs........                                 54,000

         Gross Profit                                               405,000 Contribution Margin                                                 441,000
         Non-Manufacturing                                                      Fixed Manufacturing
         Expenses                                                               and Other Fixed Expenses
           Variable Selling & Admin                54,000                       Fixed Mfg. Overhead                          100,000
           Fixed Selling & Admin.                  70,000                       Fixed Admin.and Sales                            70,000
         Total Non-mfg. Expenses                                    124,000     Total Fixed Expenses                                            170,000
         Net Income                                          $      281,000      Net Income                                                 $   271,000

7B

8C

9B
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Prob.
        Allocating Costs to Departments
 1
                                          Support Departments              Operating Departments
                                       Maintenance               Power      Education     Technology
        Cost before allocation                $99,000          $54,000


        Allocation of Maintenance



        Allocation of Power


 2


        Allocating costs for Joint Products


 3


 4


 5


 6


 7


 8



        Process Cost Accounting
 9


10


11


12


13


14


15

        Process Cost Accounting
16
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                                                                                                 Equivalent Units
       Flow of Production                                                 Physical Units Materials Conv. Costs
 1     Beginning Work in Process                                                  15,000
 2     Units Started in Production                                                40,000
 3     Total Units to Account For                                                 55,000
 4     Units Completed & Transferred Out                                          42,500         42,500
 5     Ending Work-In Process Inventory                                           12,500         12,500
 6     Units accounted for                                                        55,000                        -
 7     Equivalent units of Production- AVERAGE                                                   55,000
 8     Less: Equivalent Units in beginning WIP
 9     Equivalent units of Production - FIFO
10     Costs                                                                   Totals       Materials Conv. Costs
11     Beginning Work In Process                                                   5,500
12     Costs added this period                                                    18,000
13     Total                                                                      23,500            -           -
14     Divide by Equivalent Units of Production-Line 7 or 9                                         -           -
15     Cost per Unit
16     Apply Costs to Finished Units and Ending W.I.P.
17                                                                             Totals           Units     Unit Cost
18     Units Completed this Period-If using average method                              -                       -
19     Cost of Ending Work In Process
20      Raw Materials                                                                   -                       -
21      Conversion Costs                                                                -                       -
22      Total cost of ending Work-In-Process                                            -
23
24
25
26     Total Costs Accounted For                                           $            -
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       Ogden Corporation
                                                                             Step 1           Step 2- Equiv. Units
       Flow of Production                                               Physical Units Materials Conv. Costs
 1     Beginning Work in Process
 2     Units Started in Production
 3     Total Units to Account For                                              100,000
 4     Units Completed & Transferred Out                                        90,000          90,000      90,000
 5     Ending Work-In Process Inventory                                         10,000          10,000       5,000
 6     Units accounted for                                                     100,000         100,000      95,000
 7     Equivalent units of Production- AVERAGE                                                 100,000      95,000
 8     Less: Equivalent Units in beginning WIP
 9     Equivalent units of Production - FIFO
10     Costs to account for (Step 3)                                         Totals       Materials Conv. Costs
11     Beginning Work In Process                                                14,000           8,000       6,000
12     Costs added this period                                                  72,000          40,000      32,000
13     Total costs to Account For                                               86,000          48,000      38,000
14     Compute cost per EUP (Step 4)
15     Divide by Equivalent Units of Production-Line 7 or 9                                    100,000      95,000
16     Cost per Unit                                                              0.88            0.48         0.40
17     Apply Costs to F.G. & Ending W.I.P. (Step 5)                          Totals            Units      Unit Cost
18     Units Completed this Period-If using average method                   79,200.00    90,000.00            0.88
19     Cost of Ending Work In Process
20      Raw Materials                                                         4,800.00    10,000.00            0.48
21      Conversion Costs                                                      2,000.00        5,000.00         0.40
22      Total cost of ending Work-In-Process                                  6,800.00
23
24
25
26     Total Costs Accounted For                                         $   86,000.00
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       Charlotte Corporation                                                      Equivalent Units
                                                                              Units Material Conversion
       Beginning Work in Process                                              1,000        60%         20%
       Started production in month                                            9,000
       Completed production in month                                          9,500
       Ending work in Process                                                   500        90%         40%
                                                                         Costs Incurred
                                                          Totals        Materials      Labor     Overhead
       Beginning Inventory                             $     2,600 $         1,200 $       600 $       800
       Costs during month                              $ 105,135 $          19,635 $ 38,000 $ 47,500
                                                       $ 107,735 $          20,835 $ 38,600 $ 48,300
       [Note: Last year Unit Costs: RM $2, DL $3, OH $4. This year Unit Costs: RM $2.10, DL $4, OH $5]
                                                                             Step 1           Step 2- Equiv. Units
       Flow of Production                                               Physical Units Materials Conv. Costs
 1     Beginning Work in Process                                                 1,000
 2     Units Started in Production                                               9,000
 3     Total Units to Account For                                               10,000
 4     Units Completed & Transferred Out                                         9,500           9,500       9,500
 5     Ending Work-In Process Inventory                                            500             450         200
 6     Units accounted for                                                      10,000           9,950       9,700
 7     Equivalent units of Production- AVERAGE                                                   9,950       9,700
 8     Less: Equivalent Units in beginning WIP                                                    (600)        (200)
 9     Equivalent units of Production - FIFO                                                     9,350       9,500
10     Costs to account for (Step 3)                                         Totals       Materials Conv. Costs
11     Beginning Work In Process                                         $       2,600 $         1,200 $     1,400
12     Costs added this period                                                 105,135          19,635      85,500
13     Total costs to Account For                                        $     107,735 $        20,835 $ 86,900
14     Compute cost per EUP (Step 4)
15     Divide by Equivalent Units of Production-Line 7 or 9                                      9,950       9,700
16     Cost per Unit-if using Average (All production)                   $       11.05 $          2.09 $       8.96
17     Cost per Unit-if using FIFO (Units started this period)           $       11.10 $          2.10 $       9.00
18     Apply Costs to F.G. & Ending W.I.P. (Step 5)                          Totals            Units      Unit Cost
19     Units Completed this Period-If using average method               $ 105,000.96            9,500 $     11.05
20     Cost of Ending Work In Process
21      Raw Materials                                                           942.29          450.00         2.09
22      Conversion Costs                                                      1,791.75          200.00         8.96
23      Total cost of ending Work-In-Process                             $    2,734.04
24
25
26     Total Costs Accounted For                                         $ 107,735.00

17

18

19
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20

21     Direct Costing Questions
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       Gordon Company began its operations on January 1, 2002, and produces a single product.
       Gordon uses an actual (historical) cost system.

                                            Fixed cost       Variable cost
        Raw materials                                              $3.00     per unit produced
        Direct labor                                               $1.25     per unit produced
        Factory overhead                    $120,000               $0.75     per unit produced
        Selling and administrative           $70,000               $1.00     per unit sold

       Selling Price per unit                    $10
       Units Produced                        100,000
       Units sold                              80,000
       Ending inventory                        20,000
       Operating income for 2002 under the variable (direct) costing method is:

        ABSORPTION COSTING                                                DIRECT COSTING
       Sales                                             $       800,000 Sales                                                $   800,000
       Cost of Sales                                                         Variable Cost of Sales
       Beginning Inventory                                                   Begin. Inventory
       Production Costs                                                      Production Costs
       1. Direct Materials                    300,000                        1. Direct Materials                  300,000
       2. Direct Labor                        125,000                        2. Direct Labor                      125,000
       3. Variable Overhead                    75,000                        3. Variable Overhead                  75,000
       4. Fixed Overhead                      120,000
       Total                                  620,000                        Total                                500,000
       Ending Inventory                      (124,000)                       Ending Inventory                     (100,000)
       Cost of Sales                                             496,000     Var. Cost of Sales                                   400,000
                                                                             Other Variable Costs:
                                                                               Var. Sell & Adm.                    80,000
                                                                                                                   80,000
                                                                             Total Other Variable Costs........                    80,000

       Gross Profit                                              304,000 Contribution Margin                                      320,000
       Non-Manufacturing                                                 Fixed Manufacturing
       Expenses                                                          and Other Fixed Expenses
       Variable Selling & Admin                80,000                    Fixed Mfg. Overhead                      120,000
       Fixed Selling & Admin.                  70,000                        Fixed Admin.and Sales                 70,000
       Total Non-mfg. Expenses                                   150,000 Total Fixed Expenses                                     190,000
       Net Income                                        $       154,000 Net Income                                           $   130,000
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              1   B
              2   C
                      Test Corporation has a job order cost system.
                      The following debits (credits) appeared in the general ledger
                      account work-in-process for the month of March:
                      March 1, balance                                       $    12,000
                      March 31, direct materials                             $    40,000
                      March 31, direct labor                                 $    30,000
                      March 31, factory overhead                             $    27,000
                      March 31, to finished goods                            $ (100,000)
                      Test applies overhead to production at a predetermined
                      rate of 90% based on the direct-labor cost.
                      Job No. 232, the only job still in process at the end of March,
                      has been charged with factory overhead of $2,250.
                      How much direct materials were charged to Job No. 232?
                      a. $2,250 b. $2,500 c. $4,250 d. $9,000
                      March 1, balance                                     $       12,000
                      March 31, direct materials                                   40,000
                      March 31, direct labor                                       30,000
                      March 31, factory overhead                                   27,000
                      March 31, to finished goods                               (100,000)
                      Balance                                                       9,000
                         Factory Overhead                          2,250
                         Labor Cost                                2,500
                      Labor and Overhead in Job 232                                 4,750
                      Materials cost in Job 232                            $        4,250

              3   B

              4   A   For the calendar year, a manufacturer estimates that
                      Budgeted overhead for year                             $64,000
                      Budgeted direct labor hours                             16,000              $    4.00 Rate
                      Actual overhead for the year:                        $100,000
                      Actual direct labor hours worked in year:               20,000
                      Actual direct labor hours in January:                    1,500                  1,500
                      Direct labor costs in January:                          $8,000
                      How much overhead was applied to production in January?                         6,000
                      a. $6,000 b. $7,500 c. $8,000 d. $32,000 e. $40,000

              5   D   Journal entry for job order cost system

              6   B   Company B
                      Total factory overhead              $     80,000
                      Total direct labor                        60,000
                      Overhead application rate                   1.33
                      Labor in uncompleted jobs           $     12,000
                      Overhead in uncompleted jobs        $     16,000

              7   D
              8   B
              9   A   To charge an amount to an account
                      means to debt the account for that amount.
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             10 B Georgia Company incurred $100,000 in overhead costs during the most recent
                      fiscal year. At year-end, before the application of overhead costs to ending
                    inventories, direct costs had been identified as follows:
                                             Direct          Direct
                                             Labor         Materials
                    Finished goods          $20,000         $80,000
                     Work in process         30,000         120,000
                    Overhead is applied at the rate of 75% of direct labor cost. At what
                    amount should the inventories be valued at year-end, respectively?
                    a. $100,000 and $250,000. b. $115,000 and $172,500.
                    c. $140,000 and $210,000. d. $170,000 and $200,000.
                    e. $130,500 and $157,000.
                                             Direct          Direct        Overhead                     Total
                                            Materials        Labor            Rate        Overhead Inventory
                    Finished goods          $80,000         $20,000           75%          15,000.00 $115,000
                    Work in process         120,000          30,000           75%          22,500.00 $172,500
             11 E
             12 B   Elliot Company manufactures tools to customer specifications.
                    The following data pertain to Job 1501 for February:
                    Direct materials                            $4,200
                    used
                    Direct-labor                                   300
                    hours worked
                    Direct-labor rate                                 8
                    per hour hours
                    Machine                                        200
                    used factory
                    Applied                                          15
                    overhead rate manufacturing cost recorded on Job 1501 for February?
                    What is the total
                    Elliot Company                                                           Cost
                    Direct materials used                                $       4,200 $       4,200
                    Direct-labor hours worked                                      300
                    Direct-labor rate per hour                           $         8.00
                                                                                         $     2,400
                    Machine hours used                                             200
                    Applied factory overhead rate per machine hour       $           15
                                                                                         $     3,000
                                                                                         $     9,600
             13 D   X Company used an overhead rate during 2006 of $2 per direct labor hour,
                    based on an estimate of 20,000 direct labor hours to be worked during the year.
                    Actual costs and activity during 2005 were.
                    Actual manufacturing overhead cost incurred                               $38,000
                    Actual direct labor hours worked                                           18,000
                    The under -or overapplied overhead for 2005 would be:
                    a. $1,000 underapplied. b. $2,000 overapplied.
                    c. $3,000 underapplied. d. $2,000 underapplied.
                    Actual manufacturing overhead cost incurred                                        $ 38,000
                    Actual direct labor hours worked                                           18,000
                    Overhead Rate                                                        $      2.00
                    Overhead applied                                                                     36,000
                    Underapplied overhead                                                             $ 2,000
             14 A   Blackwood uses a job order cost system and applies factory
                    overhead to production orders on the basis of direct-labor cost.
                    Overhead rates for 2006 are 200% for department A and 50% for department B.
                    Job 123, started and completed during 2006, was charged with the following costs:
                                                            Dept. A         Dept. B
                    Direct materials                       $    25,000 $          5,000
                    Direct labor                                      ? $        30,000
                    Factory overhead                       $    40,000                 ?
                    The total manufacturing costs associated with Job 123 should be
                    a. $135,000 b. $180,000 c. $195,000 d. $240,000
                                                            Dept. A         Dept. B
                    Direct materials                     $     25,000 $          5,000
                    Direct labor                         $     20,000 $         30,000
                    Factory overhead                     $     40,000 $         15,000
                    Total                                                                $ 135,000

								
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