Consider the following data pertaining to the production of a company for a particular month: Opening stock of raw material: $11,570 Closing stock of raw material: $10,380 Purchase of raw material during the month: $1,28,450 Total manufacturing cost charged to the product: $3,39,165 Factory overheads are applied at the rate of 45% of direct labor cost. The amount of factory overheads applied to production is:

Consider the following data pertaining to the production of a company for a particular month: Opening stock of raw material: $11,570 Closing stock of raw material: $10,380 Purchase of raw material during the month: $1,28,450 Total manufacturing cost charged to the product: $3,39,165 Factory overheads are applied at the rate of 45% of direct labor cost. The amount of factory overheads applied to production is:

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
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