Compute the equivalent units of production for materials

Assignment Help Managerial Accounting

Reference no: EM131660208

Accounting - Managerial Accounting Assignment

Part A - Use the following information for Question 1 and 2

Gerry, Ltd has two departments, Filling and Printing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Filling Department bases its rate on machine-hours, and the Printing Department bases its rate on direct labor hours. At the beginning of the year, the company made the following estimates:

Q1) Compute the predetermined overhead rate to be used in each department

Sanding:_______________ Assembly:________________

	Department
	Filling	Printing
Direct Labor hours	14,000	75,000
Machine hours	120,000	15,000
Manufacturing overhead cost	$ 960,000	$ 675,000
Direct labor cost	$ 168,000	$ 1,050,000

Q2) Assume that the overhead rates that you computed in (1) above are in effect. The job cost sheet for Job 2006, which was started and completed during the year, showed the following:

	Department
	Filling	Printing
Direct Labor hours	36	22
Machine hours	60	12
Direct Materials	$ 6,300	$ 820
Direct Labor cost	$ 432	$ 528

Compute the overhead cost applied to Job 2006 for both departments. Then give me the total cost of BOTH jobs

SANDING___________

ASSEMBLY__________ TOTAL______________

Part B - Use the following information for problems 3, 4, and 5.

Smaug, Inc., a chemical company, processes chemicals for various manufacturers of office cleaners. Data relating to pounds processed during October are provided below:

	Pounds	Percent Completed
	Pounds	Materials	Labor and Overhead
Work in Process, October 1	80,000	50%	40%
Work in process, October 30	50,000	60%	40%
Started into production during October	220,000
Transferred during October	250,000

Q3) Compute the equivalent units of production for Materials and for Labor and Overhead for October:

1. a) Material - 220,000, Labor & OH - 220,000 c) Material - 250,000, Labor & OH - 250,000

2. b) Material - 280,000, Labor & OH - 270,000 d) Material - 290,000, Labor & OH - 282,000

Use the following information to answer Question 4 (and the information from question 3)

	Material	Labor and Overhead
Beginning Work-in-Process	$ 142,000	$ 296,000
Added During the Period	$ 698,000	$ 1,189,000

Q4) What is the Cost per Equivalent Unit for the month of October?

1. Material - $3.82, L&H - $6.75 c. Material - $2.79, L&H $4.76

2. Material - $3.00, L&H - $4.50 d. Material - $3.36, L&H $5.94

Q5) What is the Cost of Goods Transferred for the period (Use the information from Questions 3 and 4)?

a. $2,642,500

b. $1,875,000

c. $1,887,500

d. $2,325,000

Just need questions 3, 4 and 5.

Reference no: EM131660208

Questions Cloud

Summarizing the major points : Find an article about Ransomware written within the last MONTH. Write 4-5 complete sentences summarizing the major points.

Complete proposal of selected topic of choice for the paper : Students are required to complete and submit a proposal of their topic of choice for the Paper. This proposal should include an overview of the topic.

How is susie business diagrammed : Susie sells seashells by the Colorado sea shore. She's contacted us, BL Inc., to make a database to support her online sales.

What is business process management : What is business process management (BPM)? Why do processes need management? What are BPM activities?

Compute the equivalent units of production for materials : Accounting 220 - Managerial Accounting Assignment. Compute the equivalent units of production for Materials and for Labor and Overhead for October

Describe the concept of cpu overclocking : Describe the concept of CPU overclocking. Include pros and cons, possible consequences, heat and power considerations, and cooling considerations.

Liability-in case of a forged drawer signature on a check : On whom can liability be imposed in the case of a forged drawer's signature on a check? What are the limits set by Section 4-406(f) of the Uniform Commercial.

How would you evaluate whole foods growth strategy : How would you evaluate Whole Foods' growth strategy? How would you evaluate Whole Foods' performance over past few years?

Impact of potential risks with current network setup : For the Amazon.com organization, identify and assess impact of potential risks with current network setup.

Reviews

len1660208

9/27/2017 3:15:56 AM

I just need questions 3,4 and 5 I finished the rest already. Make sure to show all work! Without showing all of your work you will not get full credit if you have the right answer. What is the Cost of Goods Transferred for the period (Use the information from Questions 3 and 4)?

Write a Review

Required(*) Message

User Account

All Pages