Using the data given for Cases 1 below, and assuming the use of the average cost method, compute the separate equivalent units of production - one for materials and one for labor and overhead - under each of the following assumptions (labor and factory overhead are applied evenly during the process in each assumption). Assumptions: At the beginning of the process, 75% of the materials go into production, and 25% go into production when the process is one- half completed. Case 1: Started in process - 5,000 units. Finished 3,000 units. Work in process, end of the period, 2,000 units, three-fourths completed. For this problem, determine the equivalent units for labor and overhead. Determine the equivalent units for materials only

Using the data given for Cases 1 below, and assuming the use of the average cost method, compute the separate equivalent units of production - one for materials and one for labor and overhead - under each of the following assumptions (labor and factory overhead are applied evenly during the process in each assumption). Assumptions: At the beginning of the process, 75% of the materials go into production, and 25% go into production when the process is one- half completed. Case 1: Started in process - 5,000 units. Finished 3,000 units. Work in process, end of the period, 2,000 units, three-fourths completed. For this problem, determine the equivalent units for labor and overhead. Determine the equivalent units for materials only

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 1P: The cost behavior patterns below are lettered A through H. The vertical axes of the graphs represent...

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The cost behavior patterns below are lettered A through H. The vertical axes of the graphs represent total dollars of expense, and the horizontal axes represent production in units, machine hours, or direct labor hours. In each case, the zero point is at the intersection of the two axes. Each graph may be used no more than once. Required: Select the graph that matches the lettered cost described here. a. Depreciation of equipmentthe amount of depreciation charged is computed based on the number of machine hours that the equipment was operated. b. Electricity billflat fixed charge, plus a variable cost after a certain number of kilowatt hours are used. c. City water billcomputed as follows: d. Depreciation of equipmentthe amount is computed by the straight-line method. e. Rent on a factory building donated by the citythe agreement calls for a fixed fee payment, unless 200,000 labor hours are worked, in which case no rent need be paid. f. Salaries of repair workersone repair worker is needed for every 1,000 machine hours or less (i.e., 0 to 1,000 hours requires one repair worker, 1,001 to 2,000 hours requires two repair workers, etc.).
Assuming that all materials are added at the beginning of the process and that labor and factory overhead are applied evenly during the process, compute the figures to be inserted in the blank spaces of the following data, using the weighted average cost method. [Hint: for best success in solving each Case, solve them in numerical order starting with (1)]
The following data appeared in the accounting records of Craig Manufacturing Inc., which uses the weighted average cost method: Case 1All materials are added at the beginning of the process, and labor and factory overhead are added evenly throughout the process. Case 2One-half of the materials are added at the start of the manufacturing process, and the balance of the materials is added when the units are one-half completed. Labor and factory overhead are applied evenly during the process. Make the following computations for each case: a. Unit cost of materials, labor, and factory overhead for the month b. Cost of the units finished and transferred during the month c. Cost of the units in process at the end of the month
Overhead costs are assigned to each product based on __________________. A. the proportion of that products use of the cost driver B. a predetermined overhead rate for a single cost driver C. price of the product D. machine hours per product
The following data show the units in beginning work in process inventory, the number of units started, the number of units transferred, and the percent completion of the ending work in process for conversion. Given that materials are added 50% at the beginning of the process and 50% at the end of the process, what are the equivalent units for material and conversion costs for each quarter using the weighted-average method? Assume that the quarters are independent.
The following data show the units in beginning work in process inventory, the number of units started, the number of units transferred, and the percent completion of the ending work in process for conversion. Given that materials are added at the beginning of the process, what are the equivalent units for material and conversion costs for each quarter using the weighted-average method? Assume that the quarters are independent.
A company has the following information relating to its production costs: Compute the actual and applied overhead using the companys predetermined overhead rate of $23.92 per machine hour. Was the overhead over applied or under applied, and by how much?
Rath Company showed the following information for the year: Required: 1. Calculate the standard direct labor hours for actual production. 2. Calculate the applied variable overhead. 3. Calculate the total variable overhead variance.
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Using the data given for Cases 1 below, and assuming the use of the average cost method, compute the separate equivalent units of production - one for materials and one for labor and overhead - under each of the following assumptions (labor and factory over - head are applied evenly during the process in each assumption). Assumptions: At the beginning of the process, 75% of the materials go into production, and 25% go into production when the process is one- half completed. Case 1: Started in process - 5,000 units. Finished - 3,000 units. Work in process, end of the period, 2,000 units, three-fourths completed. For this problem, determine the equivalent units for labor and overhead. Determine the equivalent units for materials only
General Accounting
Financial Accounting