Using the data given for Cases 1 below, and assuming the use of theaverage cost method, compute the separate equivalent units ofproduction - one for materials and one for labor and overhead - undereach of the following assumptions (labor and factory over - head areapplied evenly during the process in each assumption).Assumptions: At the beginning of the process, 75% of the materials gointo 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-fourthscompleted.For this problem, determine the equivalent units for labor and overhead.Determine the equivalent units for materials only

Case 1 RecapGiven:Units started: 5,000 unitsUnits finished and transferred out: 3,000 unitsEnding…

Answered: Using the data given for Cases 1 below,…

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.).
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.
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
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.
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.
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
Computing Equivalent Units, FIFO and Weighted Average Cost Methods Assume each of the following conditions concerning the data given: All materials are added at the beginning of the process. All materials are added at the end of the process. (Note that this would have to be a department subsequent to the first department for all materials to be added at the end of the process, but ignore that fact for purposes of this solution.) Half of the materials are added at the beginning of the process, and the balance of the materials is added when the units are three-fourths completed. In all cases, labor and factory overhead are added evenly throughout the process.
Wildhorse Company accumulated the following standard cost data concerning product I-Tal. Direct materials per unit: 2.50 pounds at $4.40 per pound Direct labor per unit: 0.40 hours at $16.00 per hour Manufacturing overhead: Allocated based on direct labor hours at a predetermined rate of $20.00 per direct labor hour Compute the standard cost of one unit of product I-Tal. (Round answer to two decimal places (e.g., 2.75).) Standard cost $
a) Compute the predetermined overhead rate under the current method of allocation and determine the unit product cost of each product for the current year b) The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below. Using the data below and an activity-based costing approach, determine the unit product cost of each product for the current year. Expected Activity Activity Cost Estimated Product B Product H Total Pools Overhead Costs Machine setups required Purchase orders issued $180,000 600 1,200 1,800 38,382 500 100 600 Machine- 92,650 6,800 10,200 17,000 hours required Maintenance 138.968 693 907 1,600 requests ued $450,000
Figuring a predetermined overhead rate using direct materials as the allocation base. $130500 estimated manufacturing overhead cost and $87000 as allocation base. Then whats next in the formula
2. Delph Company uses a job-order costing system and has two manufacturing departments – Molding and Fabrication. The company provided the following estimates at the beginning of the year: Molding Fabrication Total Machine-hours 20,000 30,000 50,000 Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour $700,000 $210,000 $910,000 $3.00 $1.00 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs–Job D-70 and Job C-200. It provided the following information related to those two jobs: Job D-70 Direct materials cost Direct labor cost Machine-hours Molding $375,000 $200,000 14,000 Fabrication $325000 Total $700000 $360,000 20,000 $160,000 6,000 Job C -200 Direct materials cost Direct labor cost Machine-hours Molding $300,000 $175,000 6,000 Fabrication $250,000 $225,000 24,000 Total $550,000 $400,000 30,000 Delph had no underapplied or overapplied manufacturing overhead during the year.

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