Question 9: Anjan Paints manufactures two high-quality base paints: an oil-based paint and a lotex paint.Both are house paints and are manufactured in neutral white color only. After analyzing the company'sentire operations, Anjan's accountants and production managers have identified activity cost pools andaccumulated annual budgeted overhead costs by pool as follows.Activity Cost PoolsPurchasingProcessingPackagingTestingStorage and Inventory ControlWashing and Cleaning equipmentTotal annual budgeted overheadFollowing further analysis, activity cost drivers were identified and their expected use by product andactivity were scheduled as follows.Cost DriversActivity CostPoolsPurchasing Purchase ordersGallons processedProcessingPackagingTestingContainers filledStorageWashingNumber of testsAverage gallons on handNumber of batchesEstimated Overhead$ 260,000$1,500,000$ 600,000$ 250,000$ 200,000$ 590,000$3,400,000Expected CostDrivers per Activity1,500 orders1,000,000 gallons400,000 containersa. Calculate the activity ratesb. Allocate the overhead costsc. Compute the overhead cost per unit4,000 tests18,000 gallons800 batchesExpected use of drivers per productOil-basedLatex800400,000180,0002,10010,400350700600,000220,0001,9007,600450

Activity Based Costing :— Activity-based costing is a costing method that identifies activities in…

Storage Washing Average gallons on hand Number of batches a. Calculate the activity rates it b. Allocate the overhead costs c Compute the overhead cost per unit 18.000 gallons 800 batches 10,400 350 7,600 450

Storage Washing Average gallons on hand Number of batches a. Calculate the activity rates it b. Allocate the overhead costs c Compute the overhead cost per unit 18.000 gallons 800 batches 10,400 350 7,600 450

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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Date ACCOUNT Work in Process-Forging Department Nov. Item 1 Bal., 900 units, 60% completed 30 Direct materials, 12,900 units 30 Direct labor 30 Factory overhead 30 Goods transferred, 2 units 30 Bal., 1,400 units, 70% completed $ Debit 123,840 21,650 16,870 $ Credit ? ACCOUNT NO. Balance Debit Direct materials cost per equivalent unit Conversion cost per equivalent unit 10,566 134,406 156,056 172,926 ? Cost per equivalent units of $9.60 for Direct Materials and $3.00 for Conversion Costs. Based on the above data, determine each of the following amounts. ? If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar. a. Cost of beginning work in process inventory completed in November. Credit b. Cost of units transferred to the next department during November. $ c. Cost of ending work in process inventory on November 30. d. Costs per equivalent unit of direct materials and conversion included in the November 1 beginning work in…
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Management and Allocation Assignm... i) Saved Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Proportion of Services Used by Direct Costs $120,000 76,000 54,000 37,000 Maintenance Machining Assembly Department Machining Assembly Maintenance Cafeteria Cafeteria 0.6 0.2 0.2 0.1 0.2 0.7 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). Complete this question by entering your answers in the tabs below. Required A Required B The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round Intermediate calculations.) To Cafeteria Machining Assembly From Maintenance…
Units to be Assigned Costs Question 11 Eve Cosmetics Company consists of two departments, Blending and Filling. The Filling Department received 51,800 ounces from the Blending Department. During the period, the Filling Department completed 53,200 ounces, including 3,500 ounces of work in process at the beginning of the period. The ending work in process inventory was 2,100 ounces. How many ounces were started and completed during the period?fill in the blank 1 ounces
Conlon Enterprises reports the following information about resources. Cost Driver Rate Cost Driver Volume Resources used Setups $ 370 per run 425 runs Clerical 50 per page 2,500 pages typed Resources supplied Setups $ 160,450 Clerical 133,400 Sales revenue totaled $315,000. Required: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.