Solution
Yash answered on
Feb 23 2021
1.)
a.) Predetermined overhead rate = 10,00,000/25,000 = $40 per machine hour.
.) manufacturing overhead applied to production for the first quarter:
Job Numbe
Machine Hours
Appiled Rate
Total OH applied
L1
900.00
40.00
36,000.00
L2
1,600.00
40.00
64,000.00
L3
2,000.00
40.00
80,000.00
Total
1,80,000.00
c.) cost of jobs completed in the first quarter were as follows:
Particulars
L1
L2
Opening W.I.P
68,000.00
30,000.00
Direct material
15,000.00
0.00
Direct labou
30,000.00
33,000.00
manufacturing overhead
36,000.00
64,000.00
Total Cost
149,000.00
127,000.00
d.) cost of the jobs still in process at the end of the first quarter:
Particulars
L3
Opening W.I.P
-
Direct material
45,000.00
Direct labou
65,000.00
manufacturing overhead
80,000.00
Total Cost
1,90,000.00
2.) a.)
i.) Equivalent units of direct material during January = 11,000 units
ii.) Equivalent units of conversion during January = 8000*45%+6000*100%+5000*35%
= 11,350 units.
iii.) Equivalent units of direct material during January = 11,000 units
iv.) Equivalent units of conversion during January = 8000*45%+6000*100%+5000*35%
= 11,350 units.
.) The main difference between the FIFO and weighted average method is in the treatment of beginning work-in-process or unfinished goods inventory. The weighted average method includes this inventory in computing process costs, while the FIFO method keeps it separate.
3.) unit costs for “Spirit” and “Companion” using the traditional method of...