Compute the cost per unit to complete packaging for labor

Assignment Help Cost Accounting
Reference no: EM131208897

This is a comprehensive problem all contained on this spreadsheet tab.

Process Job Costing and Equivalent Units of Production

Bay Manufacturing produces paint. The company has two processes: mixing and packaging. The ingredients for the paint are mixed in large batches and then transferred to the packaging department, where one-gallon cans are filled, capped, labeled, and boxed.

There was no work in process on February 1. The materials are all brought to the packaging job up front and charged to the job. Nothing is transferred to finished goods until the entire job is complete. The materials costs include the packaging, material, and the cost transferred from the mixing department.

On February 2, 15,000 gallons (job 2-1) were transferred into the packaging department from the mixing department and completed on February 19.

The costs incurred to complete job 2-1 in the packaging department are as follows:

Materials

56,250

Labor

11,250

Overhead (applied based on direct labor hours)

7,500

On February 20, another 20,000 gallons (job 2-2) were transferred into the packaging department.
Job 2-2 was 50% complete as to labor at the end of the month.

The costs incurred (unit cost unchanged from job 2-1) to complete job 2-2 in the packaging department are as follows:

Materials

75,000

Labor

15,000

Overhead (applied based on direct labor hours)

10,000

INSTRUCTIONS:

1. Compute the physical units of production.

2. Compute the cost per unit to complete packaging for labor, materials, overhead, and total.

3. Compute equivalent units and cost of work in process as of the end of February.

4. Record journal entries for:

a. the movement of materials from materials inventory to each job
b. the allocation of payroll to each job
c. the application of overhead to each job
d. the movement of work in process to finished goods.

Reference no: EM131208897

Questions Cloud

What is the permeability constant for the coffee grounds : Is the E. coli O157:H7 bacterium a "good" bacterium, or a "bad" bacterium? What effects does it have on the body? Will this filter trap the E. coli O157:H7 bacteria? If not, how could you kill these bacteria in the water when backpacking?
Write a business memorandum : Write a business memorandum (addressed to your supervisor) on the importance of a sound communication strategy in marketing a product or a brand in international markets.
Discuss the importance of each type of budget : Discuss the importance of each type of budget (master, sales, production, direct materials, manufacturing overhead, sales and administrative).
Which stock would you consider to be riskier and why : If you knew that the beta coefficient of Cornhusker stock is 1.5 and the beta of Mustang is 0.9, how would your answer to Part a change?
Compute the cost per unit to complete packaging for labor : Compute the physical units of production. Compute the cost per unit to complete packaging for labor, materials, overhead, and total. Compute equivalent units and cost of work in process as of the end of February.
Employee of a company doing business in another country : Imagine yourself as an employee of a company doing business in another country. Consider some of the misperceptions that could occur, from awkward language translations to colliding customs.
How a 16-bit signed integer adder/subtracter used to add : Show how a 16-bit signed integer adder/subtracter can be used to add two signed operands, a, with 3 pre-binary-point and 9 post-binarypoint bits, and b, with 7 pre-binary-point and 5 post-binary-point bits, to produce a result with 7 pre-binary-po..
Determining the constitutional safeguards : Choose one of the Constitutional Safeguards and explain how it works. Can a person be prosecuted twice for the same act? Explain fully all issues.
What was the percentage gain or loss on thisinvestment : A sophisticated investor, B. Graham, sold 500 shares short of Amwell,Inc. at $42 a share. -What was the percentage gain or loss on thisinvestment?

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd