Physical Units Metho Alomar Company manufactures four products from a joint praduction process: barlon, selene, plicene, and corsol. The jaint costs for one batch are as fallows: Direct materials $67,900 Direct labor 34,000 Overhead 25,500 At the split-off point, a betch yields 1,400 berlon, 2,600 selene, 2,500 plicene, and 3,500 corsol. All products are sold at the split-off point: barlen sells for $15 per unit, selene sells for $20 per unit, plicene sells for $26 per unit, and corsol sells for $35 per unit. Required: 1. Allocate the joint costs using the physical units method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar. Allocated Joint Cost Darion Selene Plicene Corsol Total 2. Suppose that the products are weighted as shown below: Barion 1.0 Selene 2.0 Plicene 1.5 Corsol 2.5 Allocate the juint custs using the weighted average method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar. Allocated Joint Cost

Physical Units Metho Alomar Company manufactures four products from a joint praduction process: barlon, selene, plicene, and corsol. The jaint costs for one batch are as fallows: Direct materials $67,900 Direct labor 34,000 Overhead 25,500 At the split-off point, a betch yields 1,400 berlon, 2,600 selene, 2,500 plicene, and 3,500 corsol. All products are sold at the split-off point: barlen sells for $15 per unit, selene sells for $20 per unit, plicene sells for $26 per unit, and corsol sells for $35 per unit. Required: 1. Allocate the joint costs using the physical units method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar. Allocated Joint Cost Darion Selene Plicene Corsol Total 2. Suppose that the products are weighted as shown below: Barion 1.0 Selene 2.0 Plicene 1.5 Corsol 2.5 Allocate the juint custs using the weighted average method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar. Allocated Joint Cost

Name: Physical Units MethodAlomar Company manufactures four products from a
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Description: Physical Units MethodAlomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint casts for one batch are as fallows:Direct materials$67,900Direct labor34,000Overhead25,500At the solit-of

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Becton Labs, Inc., produces various chemical compounds for Industrial use. One compound, called Fludex, Is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: standard Quantity or Hours standard Price Standard or Rate $18.00 per ounce $14.00 per hour Cost Direct materials 2.40 ounces $ 43.20 Direct labor 0.70 hours 9.80 variable manufacturing overhead 0.70 hours $ 3.00 per hour 2.10 Total standard cost per unit $ 55.10 During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 12,000 ounces at a cost of $198,000. b. There was no beginning inventory of materials; however, at the end of the month, 3,200 ounces of materilal remalned In ending Inventory. c. The company employs 20 lab technicians to work on the production of Fludex. During November, they each worked an average of 160 hours at an average pay rate of $12.00 per hour. d. Varlable manufacturing…
Lovell Variety Seeds mass produces wildflower seed packs. Relevant information used for the process costing system is provided below: Beginning physical units 2,300 Physical units started 22,600 Units in ending WIP 9,500, 40% complete Beginning costs $3,100 Added direct materials costs $12,000 Added direct labor costs $19,500 Added manufacturing overhead costs $8,600 What is the costs completed and transferred out? Please round your answer to the nearest whole dollar.
Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materials—X442 and Y661. The company uses a standard cost system, with the following standards for each product (on a per unit basis): Product Raw Material Standard Labor Time X442 Y661 Sintering Finishing Alpha6 1.8 kilos 2.0 liters 0.20 hours 0.80 hours Zeta7 3.0 kilos 4.5 liters 0.35 hours 0.90 hours Information relating to materials purchased and materials used in production during May follows: Material Purchases Purchase Cost Standard Price Used in Production X442 14,500 kilos $ 52,200 $ 3.50 per kilo 8,500 kilos Y661 15,500 liters $ 20,925 $ 1.40 per liter 13,000 liters The following additional information is available: The company recognizes price variances when materials are purchased. The standard labor rate is $19.80 per hour in Sintering and $19.20 per hour in Finishing. During…
Santiago Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Standard Costs Direct materials Direct labor 251,600 lbs. at $5.20 per lb. 18,500 hrs. at $16.80 per hr. Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: Variable cost, $4.10 Fixed cost, $6.50 Each unit requires 0.25 hour of direct labor. Required: a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Factory overhead Actual Costs 249,100 lbs. at $5.00 per lb. 18,930 hrs. at $17.10 per hr. $ Direct Materials Price Variance Direct Materials Quantity Variance Favorable Favorable Favorable Total Direct Materials Cost Variance b. Determine the direct…
Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materials-X442 and Y661. The company uses a standard cost system, with the following standards for each product (on a per unit basis): Standard Labor Time Sintering Finishing 0.40 hours 0.80 hours 0.30 hours 0.90 hours Information relating to materials purchased and materials used in production during May follows: Material Standard Price $ 3.60 per kilo X442 Used in Production 8,600 kilos 13,100 liters Y661 $ 1.50 per liter Product Alpha6 Zeta7 Raw Material Y661 X442 1.5 kilos 3.5 kilos 4.4 liters 2.2 liters Purchases 14,100 kilos 15,100 liters Purchase Cost $ 53,580 $ 21,140 The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $18.00 per hour in Sintering and $18.00 per hour in Finishing. c. During May, 1,250 direct labor-hours were…
Proctor has a policy of holding no inventories of any kind. Required: a. Compute materials price and efficiency variances. b. Compute materials mix and yield variances. Complete this question by entering your answers in the tabs below. Required A Required B Saved Compute materials price and efficiency variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Materials price variance Materials efficiency variance X-1 Y-7 Required A Required B > Total
Chem Manufacturing Company processes direct materials up to the splitoff point where two products (X and Y) are obtained and sold. The following information was collected for the month of November: Production: X 3000 gallons, Y 2000 gallons . Sales: X 2600 at $15 per gallon ,Y 1700 at $10 per gallon. The joint cost was $20000. No beginning inventories of X and Y. --- Using the physical-volume method, joint cost allocated for X : Select one: O a. $20000 O b. $8000 c. $12000 O d. $10000
Stacy, Inc., produces a product using a process that allows for substitution between two materials, Alpha and Beta. The company has the following direct materials data for its product. Standard costs for one unit of output 28 units of input at 56 units of input at Alpha Beta The company had the following results in June. Units of output produced 3,600 units Materials purchased and used Alpha Beta 108,800 units at $ 5.50 193,600 units at $14.80 $ 6.00 $14.50 Required: a. Compute materials price and efficiency variances. b. Compute materials mix and yield variances. Complete this question by entering your answers in the tabs below. Required A Required B Compute materials mix and yield variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Total Materials mix variance Materials yield variance Alpha
Joint Cost Allocation—Physical Units Method Board-It, Inc., produces the following types of 2 × 4 × 10 wood boards: washed, stained, and pressure treated. These products are produced jointly until they are cut. One batch produces 45 washed boards, 35 stained boards, and 20 pressure treated boards. The joint production process costs a total of $710 per batch. Using the physical units method, allocate the joint production cost to each product. Round your answers to two decimal places.
Northwest Company produces two types of glass shelving: rounded edge and squared edge. The company reports the following cost data. Rounded Edge Squared Edge Total Direct materials $ 31,200 $ 43,200 $ 74,400 Direct labor 10,400 28,800 39,200 Overhead (using plantwide rate) 37,800 73,400 111,200 Total product cost $ 79,400 $ 145,400 $ 224,800 Units produced 10,400 14,400 Product cost per unit $ 7.63 $ 10.10 Northwest’s controller wants to apply activity-based costing to allocate the $111,200 of overhead cost to the two products to see whether product cost per unit would change markedly from that above. The company’s budgeted activity usage equals its actual activity usage for the period. The following additional information is collected. Activity Budgeted Cost Activity Cost Driver Activity Usage Rounded Edge Squared Edge Total Purchasing $ 5,600 Purchase orders 119 orders 441 orders 560 orders Depreciation of machinery 58,200 Machine hours 500…
Becton Labs, Inc., produces vorious chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, es follows: Standard Quantity or Hours Standard Price or Rate $20.00 per ounce Standard Cost Direct materials 2.5 ounces $ 5e.ee Direct labor 1.4 hours $22.58 per hour 31.50 Variable manufacturing overhead Total standard cost per unit 1.4 hours $ 3.50 per hour 4.90 $ 86.48 During November, the following sctivity was recorded related to the production of Fludex: a. Materials purchased, 12,000 ounces at a cost of $225,000. b. There was no beginning inventory of materials; however, at the end of the month, 2,500 ounces of material remained in ending inventory. c. The company employs 35 lab technicians to work on the production of Fludex. During November, they each worked an average of 160 hours at en average pay rate of $22 per hour. d. Variable manufacturing overhesd is…