hgootkin to you 6nm When computing the cost per equivalent unit, the weighted-av

Question

hgootkin to you 6nm When computing the cost per equivalent unit, the weighted-average method of process costing considers: A) Costs incurred during the current period only. B) Costs incurred during the current period plus cost of ending work in process inventory O Costs incurred during the current period plus cost of beginning work in process Costs incurred during the current period less cost of beginning work in process inventory D) 5) Leia Organa Inc. has two manufacturing departments-Casting and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Casting Finishing Total Estimated total machine-hours (MHs) 4,000 5,000 S4,800 $8,800 $13,600 1,000 Estimated total fixed manufacturing overhead cost Estimated variable manufacturing overhead cost per MH $1.80 During the most recent month, the company started and completed two jobs-Job F and Job M. There were no beginning inventories. Data concerning those two jobs follow: Job F Job M $11,500 $9,000 $18,400 $7,400 700 300 1,600 2,400 Direct materials Direct labor cost Casting machine-hours Finishing machine-hours Assume that the company uses departmental predetermined overhead rates with machine- hours as the allocation base in both production departments. The manufacturing overhead applied to Job F is closest to: A) $4,620 B) $12,780 $12,420 D) $8,160

Explanation / Answer

Predetermine overhead rate of casting = (4800/1000)+1.80 = 6.60 per casting machine hour

Predetermine overhead rate fo finishing = (8800/4000)+2.90 = 5.10 per finishing machine hour

Manufacturing overhead applied on job F = (700*6.6+1600*5.1) = 12780

so answer is b) $12,780

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