the same as the number of units put into production.
custom furniture manufacturing.
debit to raw materials of $74,000.
debit to finished goods of $65,000.
i. Custom boat builder
ii. Frozen cranberry juice processor
iii. Concrete block manufacturer
iv. Winery that produces a number of varietal wines
v. Aluminum refiner that makes aluminum ingots from bauxite ore
For each company, indicate whether the company is most likely to use job-order costing or process costing.
(Points : 15)
|Direct labor hours||1,692 DLHs|
|Direct labor wage rate||$12 per DLHS|
|Number of units completed||3,600 units|
The company applies manufacturing overhead on the basis of direct labor hours. The predetermined overhead rate is $24 per direct labor hour.
Compute the unit product cost that would appear on the job cost sheet for this job. (Points : 15)
|Work in process, beginning|
|Units in process||700|
|Percent complete with respect to materials||80%|
|Percent complete with respect to conversion||40%|
|Costs in the beginning inventory:|
|Units started into production during the month||29,000|
|Units completed and transferred out||28,800|
|Costs added to production during the month:|
|Work in process, ending:|
|Units in process||900|
|Percent complete with respect to materials||70%|
|Percent complete with respect to conversion||20%|
i. Determine the equivalent units of production.
ii. Determine the costs per equivalent unit.
iii. Determine the cost of ending work in process inventory.
iv. Determine the cost of the units transferred to the next department (Points : 15)
|Work in process||$20,000||$18,000|
|Raw material purchases||$63,000|
|Direct labor costs||$92,000|
|Manufacturing overhead cost incurred||$75,000|
|Indirect materials included in manufacturing overhead costs incurred||$6,000|
|Manufacturing overhead cost applied to work in process||$69,000|
Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold in good form.
(Points : 15)