3. If 7,020 units are produced during a month, what would be the cost of goods manufactured? Assume that work in process inventories do not change. Cost of goods manufactured < Prev ‒‒‒ 13 of 17 t MacBook Pro Next >
3. If 7,020 units are produced during a month, what would be the cost of goods manufactured? Assume that work in process inventories do not change. Cost of goods manufactured < Prev ‒‒‒ 13 of 17 t MacBook Pro Next >
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 17E: Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the...
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![3. If 7,020 units are produced during a month, what would be the cost of goods manufactured? Assume that work in process
inventories do not change.
Cost of goods manufactured
2
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$
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Transcribed Image Text:3. If 7,020 units are produced during a month, what would be the cost of goods manufactured? Assume that work in process
inventories do not change.
Cost of goods manufactured
2
S
3
E
D
$
4
R
F
%
5
T
G
< Prev
(0
13 of 17
MacBook Pro
Y
H
&
‒‒‒
7
U
Next >
8
G
- 0
K
0
![sti
Sarnia Ltd. is a manufacturing company that produces a single product. The company keeps meticulous records of manufacturing
activities from which the following information has been extracted:
Number of units produced
Cost of goods manufactured
Work in process inventory, beginning
Work in process inventory, ending
Direct materials cost per unit
Direct labour cost per unit
Manufacturing overhead cost, total
March-Low
6,020
$171,360
$ 10,800
$ 18,000
$
$
Manufacturing overhead cost for March
Manufacturing overhead cost for June
6
10
?
June-High
9,030
$264,000
$ 38,400
$ 25,200
6
10
?
The company's manufacturing overhead cost consists of both variable and fixed cost elements. To have data available for planning,
management wants to determine how much of the overhead cost varies with the number of units produced versus how much is fixed
per month.
Required:
1. For both March and June, estimate the amount of manufacturing overhead cost added to production.
2. Using the high-low method, estimate a cost formula for manufacturing overhead.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F15c83c94-5314-4a21-9e70-4aa8e53c29f2%2F04214018-3608-4537-9472-a5d1f625d01b%2Ftjicoa_processed.jpeg&w=3840&q=75)
Transcribed Image Text:sti
Sarnia Ltd. is a manufacturing company that produces a single product. The company keeps meticulous records of manufacturing
activities from which the following information has been extracted:
Number of units produced
Cost of goods manufactured
Work in process inventory, beginning
Work in process inventory, ending
Direct materials cost per unit
Direct labour cost per unit
Manufacturing overhead cost, total
March-Low
6,020
$171,360
$ 10,800
$ 18,000
$
$
Manufacturing overhead cost for March
Manufacturing overhead cost for June
6
10
?
June-High
9,030
$264,000
$ 38,400
$ 25,200
6
10
?
The company's manufacturing overhead cost consists of both variable and fixed cost elements. To have data available for planning,
management wants to determine how much of the overhead cost varies with the number of units produced versus how much is fixed
per month.
Required:
1. For both March and June, estimate the amount of manufacturing overhead cost added to production.
2. Using the high-low method, estimate a cost formula for manufacturing overhead.
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