Using a spreadsheet and based on the information provided in the next section, c

Question

Using a spreadsheet and based on the information provided in the next section, complete the following requirements: 1. 2. 3. Determine the predetermined overhead rate. Determine the total number of plastic cups to account for. Prepare an equivalent units schedule. The schedule should follow the format below; you may add additional information if you would like. Whole Units Equivalent Units (Actual Direct Materials Conversion Costs Beginning Start/Completed Completed/Transferred Out Ending xxX xxX xxX xXX XxX Determine the total costs for the plastic and the unit plastic cost for the cups. 5. 4. Determine the total conversion cost and the conversion cost per cup. Determine the total equivalent cost per cup. Prepare a Cost of Production report. This report should show all costs transferred into Work-in- Process and the costs transferred to Finished Goods. This process uses FIFO costing Determine the amounts for the following. Show calculations for credit. 6. 7. 8. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufacturing Overhead e) Gross Margin f Tax Amount g) Net Income 9. Prepare the necessary Journal Entries related to the manufacturing cycle for this accounting period. Use the account numbers in the Chart of Accounts, below, instead of the accounts names when writing the journal entries. 81Pag

Explanation / Answer

Requirement 1 Determination of pre-determined overhead rate = Total overhead/Total expected units to be produced = =6300/2100 = 3 Requirement 2 Determination of total number of plastic cups to account for Beginning inventory of Direct materials 350 Add : purchases 1800 Less : Ending inventory of direct materials 50 Total number of plastic cups to account for 2100 Requirement 3 Equivalent units schedule as per FIFO method Equivalent units Whole units Direct Materials Conversion costs Beginning 300 0 210 Units started/completed 2100 Completed/Transferred out 2000 2000 2000 Ending 400 400 240 Equivalent units 2400 2450 Requirement 4 Determination of total costs for plastic and the unit plastic costs for the cups units Total costs Per unit plastic cost of cup Beginning inventory of Direct materials 350 1400 Add : purchases 1800 7200 Less : Ending inventory of direct materials 50 200 Total number of plastic cups to account for 2100 8400 4 As per Chegg Policy, we are supposed to answer the maximum of four sub-part of a question. Thank you

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