Problem # 1 San Tan Company manufactures light bulbs. Once produced, the bulbs a

Question

Problem # 1

San Tan Company manufactures light bulbs. Once produced, the bulbs are packaged and sold to wholesalers for distribution to grocery stores and large retailers like Walmart. The following costs were incurred by San Tan Company during April:

1. Compute the Manufacturing overhead cost for San Tan Company.

2. Compute the Direct materials cost for San Tan Company.

3. Compute the Conversion cost for San Tan Company.

Problem # 2

Eagle Company had 1,150 units in work in process on January 1. During the month, Eagle completed 4,800 units and had 2,000 units in process on January 31. Determine how many units Eagle started during January.

Problem # 1

San Tan Company manufactures light bulbs. Once produced, the bulbs are packaged and sold to wholesalers for distribution to grocery stores and large retailers like Walmart. The following costs were incurred by San Tan Company during April:

Explanation / Answer

PROBLEM # 1

(1) Manufacturing overhead cost = Factory electricity + Factory rent + Factory insurance

= $(15,400 + 22,600 + 1,300) = $39,300

(2) Direct materials cost = Glass for bulbs = $54,800

(3) Conversion cost = Labor + Cardboard = $(30,600 + 6,600) = $37,200

PROBLEM # 2

Number of units started = Begining WIP + Units completed - Ending WIP = 1,150 + 4,800 - 2,000 = 3,950 units

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.