Second Exam- zasepenher dirner labur um 40% efconversion cost lfthe mandenring o

Question

Second Exam- zasepenher dirner labur um 40% efconversion cost lfthe mandenring overhead for the eth wan $6.000anthedirct muterials cest was $20,000, the direct labor cost was 199,000 $30,000 0h% of prine coet Af sotal macaring costs during September were $73,000, the A $16,500 C 562,000 D. 545,500 The journal ey to econd the incurrence of indinect labor cents i A) Wages Pyab B) Work In Process C) Mandacturing Overhead D) Wages Payable Wages Payable Work ls Process B. Option B C Opton C D.Option D

Explanation / Answer

Ans 1: $ 44000

Solu: Let Total Conversion Cost be x

     So direct labour hour =0.4x

So ATQ: 0.4x+66000= x => 0.6x =66000

                         x= 110000

labour cost=110000-66000= $ 44000

Ans 2: $ 45500

Solu: Prime cost = 11000/0.40 = $ 27500

Manu. Overhead = $ 73000-27500= $ 45500

Ans 3: Option B

Reason: Work in progress

                      To Wages Payable

Ans 4:Work in process.

Reason: Journal entry:

                 Work in progress

                         To Manu. Overhead

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