determin overhead rate ? total number ceramic mugs to account for ? equivalent u
ID: 2461558 • Letter: D
Question
determin overhead rate ?
total number ceramic mugs to account for ?
equivalent units schedule ?
total cost for ceramic clay and decals ?
total conversion cost ?
total equivalent cost per mug
Megan's Mugs, a corporation, started a small manufacturing plant that fabricates mugs. The manufacturing process starts by placing ceramic clay in molds. The molds are fired in a kiln and after cooling are unmolded. After the mugs are inspected, the mugs are designed with a decal and then transferred to finished goods. This process is completely automated.Explanation / Answer
Whole units Beginning 0 Started/completed 110000 Total to account For 110000 Completed/Transferred out 100000 Ending 10000 Total Accounted For 110000 Estimated Direct Labour costs 26500 Factory OH 5600 Total conversion costs 32100 Overhead application rate 32100/102500 Eq. Units 0.31 Per Eq. unit Equivalent units of Prodn. Direct Materials Ceramic Clay Direct Materials Decals Conversion Costs 100000 100000 100000 10000 0 2500 110000 102500 Total number ceramic mugs to account for 110000 Total cost for ceramic clay and decals Cost for ceramic clay Purchases 40000@3 120000 Less: Closing inv 5000@3 15000 Consumption 105000 Cost for decals Purchases 150000@0.05 7500 Less: Closing inv 44000@0.05 2200 Consumption 5300 Total cost for ceramic clay and decals 110300 Estimated Direct Labour costs 26500 Factory OH 5600 Total conversion costs 32100
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