Chapter 20, Problem 1E

Compute the overhead allocation rate

Kendall Corporation uses the weighted-average method in its process costing system. The ending work in process inventory consists of 10,000 units. The ending work in process inventory is 100% complete with respect to materials and 60% complete with respect to labor and overhead. If the cost per equivalent unit for the period is $4.00 for materials and $1.50 for labor and overhead, what is the balance of the ending work in process inventory account?

If the current market price for selling a product at Andrew Materials is $15.50 per unit, and the company wishes to make a 12% profit, what is the target cost? Accurate answer