We Bake Perfect Pies Company makes fruit pies using a process cost system. The d
ID: 2465391 • Letter: W
Question
We Bake Perfect Pies Company makes fruit pies using a process cost system. The dough is made in the mixing department and then moves to the rolling department where crusts are rolled and placed into baking pans. The pans move into the filling department where fruit is placed into the crusts. The pies then move to the baking department. Once the pies have been baked, they move to packaging they are boxed and then sent to Finished Goods. During the month of October the company had sales of $83,000. Each pie sells for $10.
Using the following information, determine the Gross Profit for the Month of October.
Mixing Department: Beginning Balance 0
Ending inventory 1000 pies at 40% completion
DM used: $1000
DL used: $800
FOH allocated: $1200
Rolling Department: Beginning Balance 1600 pies that were 70% completed with costs of $600
Pies started: 9000
Pies transferred to Filling Department: 8100
Ending Inventory was 10% completed
DL used: $2338
FOH allocated: $2000
Filling Department: Beginning Balance 3000 pies that were 20% completed with costs of $7500
Ending inventory was 75% completed
DM used: $16200
DL used: $3800
FOH allocated: $1975
Baking Department: Beginning Balance 0
Pies Transferred into department 7600
FOH allocated: $14160
Ending inventory: 1300 pies that were 60% completed
Packaging Department: Beginning Balance: 2100 pies at 20% completion with costs of $12,600
Ending Inventory was 2000 pies at 90% completed
DM used: $7875
DL used: $1945
FOH allocated: $3890
Finished Goods Department: Beginning Balance: 2600 pies with costs of $15626
Explanation / Answer
overhead rate = total overhead / number of labor hours
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