The budgeted conversion costs for a just-in-time cell are $224,200 for 3,800 production hours. Each unit produced by the cell requires 45 minuprocess time. During the month, 2,300 units are manufactured in the cell. The estimated materials cost is $50 per unit. What is the journal entunits are completed and placed into finished goods?a.Raw and In Process Inventory207,350Finished Goods Inventory207,350Ob.Finished Goods Inventory239,800Raw and In Process Inventory239,800○ c.Raw and In Process Inventory239,800Finished Goods Inventory239,800Od.Finished Goods Inventory207,350Raw and In Process Inventory207,350

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Answered: The budgeted conversion costs for a…

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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raig Company uses two different types of labor to manufacture its product. The types of labor, Cutting and Setup, have the following standards: Labor Type Standard Mix Standard Unit Price Standard Cost Cutting 300 hours $12.00 per unit $2,400 Setup 700 hours 10.00 per unit 6,400 Yield 4,000 units During September, the following actual production information was provided: Labor Type Actual Mix Cutting 7,000 hours Setup 5,000 hours Yield 42,000 units Required:Calculate the labor mix and yield variances.
WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: Product X Product Y Product Z 1,800 2,300 3,300 $16.00 $19.00 $18.00 Added processing costs per unit $ 3.00 $5.00 $5.00 Per unit sales value if processed further $ 20.00 $ 20.00 $25.00 The cost of the joint raw material input is $71,000. Which of the products should be processed beyond the split-off point? Product XProduct Y Product Z A) yes yes Units produced Per unit sales value at split-off B) yes C) no D) no no yes yes no yes no yes
Ac
A company has two products A and B. The budgeted fixed manufacturing overhead is $10,000. It is expected to work in full capacity. It plans to use cost-based pricing by using the absorption method. Assume the company can produce and sell 1,000 units Product A and 1,000 units Product B. Product A Product B Direct Labor $1 $3 Direct Materials $3 $2 Variable Manufacturing Overhead $2 $1 Budgeted labor hours used for each unit product 1 4 Budgeted machine hours used for each unit product 3 1 Sale Demand 1000units 1000units Required ROI Rate 10% 5% Required Investment $5000 $30000 Fixed Selling Expenses $2000 $4000 Unit Variable Selling Expenses $1 $2 If allocating fixed manufacturing overhead based on machine hour basis, calculate the sale price of products A and B and budgeted profit of products A and B.
Stupji Ltd uses activity based costing. The budgeted distribution costs for the next year are: Transport costs $2,631 Order processing $1,573 -------- Total distribution costs $4,204 It is estimated that in the next year, 325,000 orders will be processed, and that the delivery vehicles will travel 1,495,000 km. A customer has indicated that 138 orders, each of which will require a journey of 122 km for each order will be placed next year. To the nearest $, what is the distribution cost for this customer? a. $47,342 b. $38,891 c. $30,299 d. $1,785
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Direct materials Direct labor Standard Quantity or Hours Standard Price or Rate 6.90 pounds $ 2.60 per pound 0.30 hours $ 7.00 per hour Standard Cost $ 17.94 $ 2.10 During the most recent month, the following activity was recorded: a. Nineteen thousand two hundred and fifity pounds of material were purchased at a cost of $2.40 per pound. b. All of the material purchased was used to produce 2,500 units of Zoom. c. 450 hours of direct labor time were recorded at a total labor cost of $4,500. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round…
Miguez Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 2.3 liters $ 7.00 per liter $ 16.10 Direct labor 0.7 hours $ 22.00 per hour $ 15.40 Variable overhead 0.7 hours $ 2.00 per hour $ 1.40 The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor-hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for September is: Multiple Choice $3,675 F $3,528 U $3,528 F $3,675 U
Costs per Equivalent Unit and Production Costs The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $33,320 of direct materials. LOOK AT IMAGE TO help solve D. and E Cost per equivalent units of $9.50 for Direct Materials and $2.10 for Conversion Costs. Based on the above data, determine each of the following amounts. If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar. a. Cost of beginning work in process inventory completed in November.$ 40222 b. Cost of units transferred to the next department during November.$ 368502 c. Cost of ending work in process inventory on November 30.$30753 d. Costs per equivalent unit of direct materials and conversion included in the November 1 beginning work in…
Huron Company produces a cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours 6.00 pounds 0.50 hours During the most recent month, the following activity was recorded: a. 11,000.00 pounds of material were purchased at a cost of $2.10 per pound b. All of the material purchased was used to produce 1,500 units of Zoom. c. 500 hours of direct labor time were recorded at a total labor cost of $6,500. Required: Direct materials Direct labor 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance Standard Price or Rate Standard Cost $ 2.30 per pound $10.00 per hour Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e.,…
Hardev
The cost data and production data for Beth Company for the month of August were as follows:Cost Data:Work in process, August 1: Materials 52,000 Cost added this month: Materials 600,000Conversion costs 69,000 Conversion costs 1,602,000Production Data:Work in process, August 1 (60% complete) 9,375 units Work in process, August 31 (30% to be done) 16,250 unitsStarted in production this August 100,000 units Normal lost units 1,375 unitsTransferred out 90,625 units Abnormal lost units ?All materials are added at the start of the process and lost units are detected at the inspection point of 75% completion.Requirement:1. Using the FIFO method, what are the cost assigned to units transferred out and units in ending work in process?2. Using the average method, what are the cost assigned to units transferred out and units in ending work in process?3. Using FIFO and weighted average, what is the amount that shall be expensed as incurred?
WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: Units produced Per unit sales value at split-off Added processing costs per unit Per unit sales value if processed further Product X 2,500 $ 23.00 $ 2.00 Product Y 3,000 $ 24.00 $ 4.00 Product Z 4,000 $ 25.00 $ 4.00 $ 27.00 $ 27.00 $ 32.00 The cost of the joint raw material input is $92,000. Which of the products should be processed beyond the split-off point? Product Y ABCD A) Product X yes Product Z yes no B) yes no yes c) no yes no D) no yes yes

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