Bohol Mfg. Co. operates a single-department factory in the processing product. Assignment of unit cost is based on the FIFO method. The followin given on its August, 19H production: Quantity data: In process, August 1 Placed in process In process, August 31 Cost data: -8,000 units, 1/4 done 70,000 units 12,000 units, 2/3 done

Bohol Mfg. Co. operates a single-department factory in the processing product. Assignment of unit cost is based on the FIFO method. The followin given on its August, 19H production: Quantity data: In process, August 1 Placed in process In process, August 31 Cost data: -8,000 units, 1/4 done 70,000 units 12,000 units, 2/3 done

Name: 5.Exercise 8: Cost of Production Report - Even Application of CostsBo
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Description: 5.Exercise 8: Cost of Production Report - Even Application of CostsBohol Mfg. Co. operates a single-department factory in the processing of its soleproduct. Assignment of unit cost is based on the FIFO method. The following data aregiven on its Augu

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter6: Process Costing

Section: Chapter Questions

Problem 45E: Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent...

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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?
Lampierre makes brass and gold frames. The company computed this information to decide whether to switch from the traditional allocation method to ABC: The estimated overhead for the material cost pool is estimated as $12,500, and the estimate for the machine setup pool is $35,000. Calculate the allocation rate per unit of brass and per unit of gold using: A. The traditional allocation method B. The activity-based costing method
FIFO Method, Single Department Analysis, One Cost Category Refer to the data in Problem 6.33. Required: Prepare a cost of production report for the Fabrication Department for December using the FIFO method of costing.
Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent units were computed using the weighted average method: Required: 1. Calculate the unit cost for June using the weighted average method. 2. Using the weighted average method, determine the cost of EWIP and the cost of the goods transferred out. 3. CONCEPTUAL CONNECTION Cassien had just finished implementing a series of measures designed to reduce the unit cost to 2.00 and was assured that this had been achieved and should be realized for Junes production. Yet, upon seeing the unit cost for June, the president of the company was disappointed. Can you explain why the full effect of the cost reductions may not show up in June? What can you suggest to overcome this problem?
K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared: The cost per equivalent unit for the period was as follows: The cost of beginning work in process was direct materials, 40,000; conversion costs, 30,000. Required: 1. Determine the cost of ending work in process and the cost of goods transferred out. 2. Prepare a physical flow schedule.
Puvd, Inc manulactures a single product in which varlable manufacturing overthead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product Standard Cost Standard Price Direct materials Direct labor Variable manufacturing overhead Standard Quantity 1.5 pounds 0.5 hours or Rate $ 6.75 per pound $21.00 per hour $ 5.00 per hour $ 10.12 $ 10.50 $ 2.50 0.5 hours During March, the following activity was recorded by the company: • The company produced 6,000 units during the month. A total of 12.500 pounds of material were purchased at a cost of $35.000. • There was no beginning inventory of materials on hand to start the month; at the end of the month, 2.500 pounds of material remainedhe warehouse • During March, 3.200 direct labor-hours were worked at a rate of $21.50 per hour. • Varlable manufacturing overhead costs during March totaled $8,200. The direct materials purchases variance…
Required information [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for The production department had the cost Information below. Required a. Cost per equivalent unit of production: FIFO method Costs added this period - Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Required b Cost assignment-FIFO Beginning work in process To complete beginning work in process Direct materials Conversion Started and completed Direct materials Conversion Units 80,000 422,000 Completed and transferred out Ending work in process Direct materials Conversion. 400,000 102,000 Total costs…
PHYSICAL FLOW, EQUIVALENT UNITS, UNIT COSTS, NOBEGINNING WIP INVENTORY, ACTIVITY-BASED COSTINGMizukawa, Inc., produces a subassembly used in the production of hydraulic cylinders.The subassemblies are produced in three departments: plate cutting, rod cutting, andwelding. Overhead is applied using the following drivers and activity rates:Driver Rate Actual Usage (by Plate Cutting)Direct labor cost 150% of direct labor cost $366,000Inspection hours $20 per hour 3,725 hoursPurchase orders $500 per order 400 ordersOther data for the plate cutting department are as follows:Beginning work in process —Units started 370,000Direct materials cost $1,850,000Units, ending work in process(100% materials; 80% conversion) 20,000Required:1. Prepare a physical flow schedule.2. Calculate equivalent units of production for:a. Direct materialsb. Conversion costs3. Calculate unit costs for:a. Direct materialsb. Conversion costsc. Total manufacturing4. Provide the following information:a. The total cost of…
Problem: Compute for equivalent production in each of the following cases using the average method: Case A Case B Even application of cost In process, January 1 Started in process In process, January 31 Even application of cost Received from preceding department In process, end Transferred out In process, beg. Case C 3,000 units, 2/3 done 25,000 units 5,000 units, 4/5 done In process, end Received from preceding dept. 80,000 units 10,000 units, 4/5 done 75,000 units ? Materials are added at the start of the process In process, beg. 3/5 done 6,500 units, 2/3 done 2,000 units, 1/8 done 50,000 units 48
Title Brahtz Company uses an activity-based costing system. It has the following manufacturing activity ar Description Brahtz Company uses an activity-based costing system. It has the following manufacturing activity areas, related cost drivers and cost allocation rates:ActivityCost DriverCost Allocation RateMachine setupNumber of setups$25.00Materials handlingNumber of parts0.25MachiningMachine hours13.00AssemblyDirect labor hours22.00InspectionNumber of finished units7.00During the month, 100 units were produced, with no defects, requiring three setups. Each unit consisted of 17 parts, 3 direct labor hours and 2.5 machine hours. Direct materials cost $50 per finished unit.What is the total manufacturing cost for inspections?$-0-$700$90$7
Comprehensive Problem—Weighted-Average Method Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May: Required: 1. Compute the equivalent units of production for materials and conversion for May. 2. Compute the cost per equivalent unit for materials and conversion for May. 3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May. 4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May. 5. Prepare a cost reconciliation report for May.