1. The following data have been recorded for recently completed Job 501 on its j
ID: 2497733 • Letter: 1
Question
1. The following data have been recorded for recently completed Job 501 on its job cost sheet. Direct materials cost was $3,067. A total of 30 direct labor-hours and 104 machine-hours were worked on the job. The direct labor wage rate is $12 per labor-hour. The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $11 per machine-hour. The total cost for the job on its job cost sheet would be:
$4,571
$3,757
$3,090
$3,427
2. Freeman Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $150,000 and direct labor-hours would be 10,000. The actual figures for the year were $186,000 for manufacturing overhead and 12,000 direct labor-hours. The cost records for the year will show:
overapplied overhead of $30,000
underapplied overhead of $30,000
underapplied overhead of $6,000
overapplied overhead of $6,000
3. For the current year, Paxman Company incurred $150,000 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was overapplied in the amount of $6,000 for the year. If the predetermined overhead rate was $8.00 per direct labor-hour, how many hours were worked during the year?
19,500 hours
18,000 hours
18,750 hours
17,750 hours
4. Fauste Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 10,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 55,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. During the month 52,000 units were completed in the Assembly Department and transferred to the next processing department. There were 13,000 units in the ending work in process inventory of the Assembly Department that were 80% complete with respect to conversion costs.
What were the equivalent units for conversion costs in the Assembly Department for the month?
58,000
55,400
62,400
52,000
5. The Morgan Company uses the weighted-average method in its process costing system. For a particular department, the company had 54,000 equivalent units with respect to conversion costs in March. There were 7,500 units in the department's beginning work in process inventory, two thirds complete with respect to conversion costs. During March, 52,500 units were started and 50,000 were completed and transferred out of the department. The ending work in process inventory in the department:
consisted of 5,000 units
consisted of 2,500 units
was 65% complete with respect to conversion costs
was 40% complete with respect to conversion costs
6. The Richmond Company uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory on August 31 consisted of 18,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 60% complete with respect to labor and overhead. If the cost per equivalent unit for August was $2.75 for materials and $4.25 for labor and overhead, the total cost assigned to the ending work in process inventory was:
$126,000
$75,600
$95,400
$80,100
Explanation / Answer
1)
Total cost for the job = Direct materials cost + Direct labor cost + Overhead Applied
Total cost for the job = 3067 + 30*12 + 104*11
Total cost for the job = 4571
Answer
$4,571
2)
Predetermined overhead rate = estimated manufacturing overhead / estimated direct labor-hours
Predetermined overhead rate = 150000/10000
Predetermined overhead rate = 15
Overhead applied = Predetermined overhead rate*actual hour
Overhead applied = 15*12000
Overhead applied = 180000
Actual overhead = 186000
Underapplied overhead = Actual overhead - Overhead applied
Underapplied overhead = 186000-180000
Underapplied overhead = 6000
Answer
underapplied overhead of $6,000
3)
overhead applied = actual manufacturing overhead + overapplied overhead
overhead applied = 150000+6000
overhead applied = 156000
Actual no of hour worked = overhead applied/ Predetermined overhead rate
Actual no of hour worked = 156000/8
Actual no of hour worked = 19500
Answer
19,500 hours
4)
Equivalent units for conversion costs = Unit completed & transferred*100% + unit in process * percetage of completion
Equivalent units for conversion costs = 52000*100% + 13000*80%
Equivalent units for conversion costs = 62400
Answer
62,400
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