USE THIS INFORMATION FOR THE NEXT FEW QUESTIONS:We find the following information for the Welding Department WIP Account of BNSF line.After the Welding Department, the costs will flow into the next WIP department which is TrackInstallation. All materials are placed in process at the beginning of the production cycle.Work In Process – WeldingBeg. Bal: 9,000 Units, 40% completeDirect Materials: 40,000 units @ $6.80Direct LaborFactory OverheadBal. ?? Units, 30% Complete$72.360$272,000$80,000To Track WIP Department, 41,500 Units$??$40,450$???16: Calculate the Whole Units (Step 1 as we learned it).17: Calculate the Equivalent Units with respect to Material and Conversion CostsMaterials:Conversion:18: Calculate the Cost Per Equivalent Unit for Materials and for ConversionMaterials:Conversion:

Process Costing- Process accounting is a technique which is adopted by manufacturing firms in which…

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Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...

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USE THIS INFORMATION FOR THE NEXT FEW QUESTIONS: We find the following information for the Welding Department WIP Account of BNSF line. After the Welding Department, the costs will flow into the next WIP department which is Track Installation. All materials are placed in process at the beginning of the production cycle. Work In Process – Welding Beg. Bal: 9,000 Units, 40% complete Direct Materials: 40,000 units @ $6.80 Direct Labor Factory Overhead Bal. ?? Units, 30% Complete $72.360 $272,000 $80,000 $40,450 To Track WIP Department, 41,500 Units $?? $???
KETT Ltd uses process costing for its main product, Fitez. You are provided with the following data for its assembly division: Physical units (Fitez) Direct materials Conversion costs Beginning work in process (October) 100 $1,000 $400 Started in October 2020 1,100 Completed during October 2020 1,000 Ending work in process (October 2020) 200 Costs added during October 2020 $22,470 $12,000 Degree of completion of beginning work in process: direct material: 50%; conversion costs: 40% Degree of completion of ending work in process: direct material: 60%; conversion costs: 20% KETT uses the First In First Out (FIFO) method of process costing for this division. Q17: The total equivalent units for conversion costs are: 1,000 units 1,070 units 1,150 units 1,200 units 1.100 units
Fellar Corporation has identified the following information: Activity pools Materials handling Machine maintenance Cost drivers Number of material moves Number of machine hours $ 40,320 $ 32,400 Number of material moves Number of machine hours 720 81,000 Required: 1. Calculate the activity rate for each activity pool. 2. Determine the amount of overhead assigned to Fellar's products if they have the following activity demands: Product A 550 41,500 Product B 170 39,500 3. Using activity proportions, determine the amount of overhead assigned to Fellar's products.
The cost of direct materials transferred into the Rolling Department of Jabari Company is $3,013,500. The conversion cost for the period in the Rolling Department is $137,800. The total equivalent units for direct materials and conversion are 4,100 tons and 1,060 tons, respectively. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Use below information for Questions 1 to 4: The smelting department of Company X has following production and cost data for September: Production: Beginning work in process 200 units that are 100% complete as to materials and 88% complete as to conversion costs; units started into production 1,000 units; units transferred out to next department 990 units; ending work in process are 100% complete as to materials and 45% complete as to conversion costs. Manufacturing costs: Beginning work in process TL 8,500 materials, TL9,210 labor and TL2,500 manufacturing overhead costs. In current period, TL50,900 worth of materials, TL25,100 worth of labor and TL38,000 worth of manufacturing overhead costs are incurred. 1-Compute the material cost portion of the ending inventory if the company uses WA method to compute equivalent units. 2-Compute the conversion cost portion of the ending inventory if the company uses FIFO method to compute equivalent units. method to compute equivalent units.…
an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in March Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,600 + $0.21 per machine-hour $38,300 + $1.50 per machine-hour $0.40 per machine-hour $94,800 + $1.50 per machine-hour $68,200 $ 23,440 $ 68,100 $ 9,400 $ 131,700 $ 69,900 During March, the company worked 22,000 machine-hours and produced 16,000 units. The company had originally planned to work 24,000 machine-hours during March. Required: 1. Prepare a flexible budget for March. 2. Prepare a report showing the spending variances for March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a report showing the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e.,…
The company uses ABC and has determined the following activities, cost drivers and activity rates Activity Center Activity Driver Activity rate Direct labor usage Direct labor hours $3 per DL hrMachine usage Machine hours $8 per machine hrMachine setups Setups $200 per set up Design changes Design changes $400 per design change You have completed Job 101. Determine the cost of Job 101, if the job required $1,000 in Direct Material, $3,000 in Direct Labor, 500 direct labor hours, 75 machine hours, 2 setups and 1 design change.
In the Shaping Department of Rollins Company the unit materials cost is $5.00 and the unit conversions cost is $3.00. The department transferred out 12,000 units and had 1,500 units in ending work in process 20% complete. If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is 2,400 7,500 8,400 12,000.I need a help please.
Drilling Company uses activity-based costing and provides this information: Manufacturing Activity Cost Driver Driver Rate Materials handling Number of parts $ 0.60 Machinery Number of machine hours 51.00 Assembly Number of parts 2.85 Inspection Number of finished units 30.00 Drilling has just completed 80 units of a component for a customer. Each unit required 100 parts and 3 machine hours. The prime cost is $1,300 per finished unit. All other manufacturing costs are classified as manufacturing overhead. Required: 1. Compute the total manufacturing costs and the unit costs of the 80 units just completed using ABC costing. 2. In addition to the manufacturing costs, the firm has determined that the total cost of upstream activities, including research and development and product design, is $180 per unit. The total cost of downstream activities, such as distribution, marketing, and customer service, is $300 per unit. Compute the full product cost per unit, including…
Cost per equivalent unit The cost of direct materials transferred into the Rolling Department of Kraus Company is $3,397,000. The conversion cost for the period in the Rolling Department is $114,425. The total equivalent units for direct materials and conversion are 4,300 tons and 995 tons, respectively. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet Determine the direct materials and conversion costs per equivalent unit. Round your answers to the nearest dollar. Direct materials cost per equivalent unit: $ Conversion cost per equivalent unit: per ton per ton 4
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity $138,000 Number of setups 10,200 Number of orders 92,400 Machine hours 18,480 Receiving hours phones with the following expected activity demands: Setting up equipment Ordering materials Machining Receiving Silven produces two models of cell Model X 5,000 80 200 6,600 385 Units completed Number of setups Number of orders Machine hours Receiving hours Required: Model Y 10,000 40 400 4,950 770 120 600 11,550 1,155
Central Company has gathered the following information. Production and Manufacturing Costs Units in beginning work in process Units started into production Units in ending work in process Percent complete for conversion costs in ending work in process Costs incurred: Equivalent Units and Cost Information Direct materials Direct labor Overhead $522,500 O $665,000 $602,000 $366,800 Materials are added at the beginning of the process, meaning 100% of the materials are allocated to Ending Work in Process. How much of the cost is assigned to units transferred? Cost & Completion % $659,400 25,000 115,000 30,000 40% $175,000 $235,400 $191,600

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