The following data are used for questions 7 to 11 The AAA Company build wooden bookshelf wall units. The company's standard costs are: Wood Trim Direct labor 25 pounds at P6.40 per pound 8 pounds at P10.00 per pound 5 hours at P12.00 per hour P30.00 per unit P130,000 per period, applied at the rate of P20.00 per unit Variable overhead Fixed overhead A recent month's transactions were: 160,000 pounds of wood were purchased at P6.50 per pound; 50,000 pounds of trim were purchased at P9.60 per pound. 155,000 pounds of wood were issued to production; 48,500 pounds of trim were issued to production. Direct labor incurred was 31,000 hours at an average cost of P11.50 per hour. Overhead costs were P302,000, of which P181,000 were variable. Six thousand units were produced during the month. 7. What was the total actual cost of wood purchased? b. P1,024,000 c. P1,040,000 a. P1,007,500 d. 480,000

The following data are used for questions 7 to 11 The AAA Company build wooden bookshelf wall units. The company's standard costs are: Wood Trim Direct labor 25 pounds at P6.40 per pound 8 pounds at P10.00 per pound 5 hours at P12.00 per hour P30.00 per unit P130,000 per period, applied at the rate of P20.00 per unit Variable overhead Fixed overhead A recent month's transactions were: 160,000 pounds of wood were purchased at P6.50 per pound; 50,000 pounds of trim were purchased at P9.60 per pound. 155,000 pounds of wood were issued to production; 48,500 pounds of trim were issued to production. Direct labor incurred was 31,000 hours at an average cost of P11.50 per hour. Overhead costs were P302,000, of which P181,000 were variable. Six thousand units were produced during the month. 7. What was the total actual cost of wood purchased? b. P1,024,000 c. P1,040,000 a. P1,007,500 d. 480,000

Name: The following data are used for questions 7 to 11The AAA Company buil
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Description: The following data are used for questions 7 to 11The AAA Company build wooden bookshelf wall units. The company's standard costs are:Wood25 pounds at P6.40 per pound8 pounds at P10.00 per pound5 hours at P12.00 per hourP30.00 per unitP130,000 per pe

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet: Algers computes its overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows: a. Units produced: 53,000 b. Direct materials purchased: 274,000 pounds at 2.50 per pound c. Direct materials used: 270,300 pounds d. Direct labor: 40,100 hours at 17.95 per hour e. Fixed overhead: 161,700 f. Variable overhead: 122,000 Required: 1. Compute price and usage variances for direct materials. 2. Compute the direct labor rate and labor efficiency variances. 3. Compute the fixed overhead spending and volume variances. Interpret the volume variance. 4. Compute the variable overhead spending and efficiency variances. 5. Prepare journal entries for the following: a. The purchase of direct materials b. The issuance of direct materials to production (Work in Process) c. The addition of direct labor to Work in Process d. The addition of overhead to Work in Process e. The incurrence of actual overhead costs f. Closing out of variances to Cost of Goods Sold
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
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