Compute the costs per equivalent unit for november

Assignment Help Managerial Accounting
Reference no: EM132220706

Description

Managerial Accounting focuses heavily on finding solutions to numerical problems. With that in mind, most units will include a number of problems. For each problem, you will need to provide more than a simple numerical response. Your solutions should thoroughly address the issue and present the findings in a meaningful format similar to those developed within the chapters and as part of the review exercises solutions. Part value may be assigned for incorrect responses.

Instructions
At the end of each chapter is a series of Unit Exercises. Students are to complete the exercises in Word (or some other compatible word processor) and submit.

Question 1
Which would be more appropriate in each of the following situations - job-order costing or process costing?

Situation

Job Order or Process Costing

A golf course designer

 

A textbook publisher

 

A business consultant

 

An oil refinery

 

A soft-drink bottler

 

A film studio

 

A firm that supervises bridge construction projects

 

A manufacturer of fine custom jewelry

 

A paint factory

 

A factory making frozen orange juice concentrate

 

Question 2
R2D2 Test Systems manufactures automated testing equipment. The company uses a job-order costing system and applies overhead on the basis of machine hours (MH). At the beginning of the year, estimated manufacturing overhead was $1,960,000, and the estimated machine hours were 98,000. Data regarding several jobs at R2D2 are presented below.

Job Number

Beginning Balance

Direct Materials

Direct Labour

Machine Hours

XJ-107

$118,600

$4,000

$8,400

150

ST-211

121,450

2,500

12,160

300

XD-108

21,800

86,400

36,650

3,100

SL-205

34,350

71,800

32,175

2,700

RX-115

0

18,990

21,845

1,400

By the end of the first month (January), all jobs but RX-115 were completed, and all completed jobs had been delivered to customers except for SL-205.

What was the balance in Finished Goods inventory at the end of January?

Question 3
Takada Technology, Inc., has a job-order costing system. The company uses predetermined overhead rates in applying manufacturing overhead cost to individual jobs. The predetermined overhead rate in Department A is based on machine hours, and the rate in Department B is based on direct materials cost. At the beginning of the most recent year, the company's management made the following estimates for the year:

 

Department A

Department B

Machine-hours

70,000

19,000

Direct labour-hours

30,000

60,000

Direct materials cost

$195,000

$282,000

Direct labour cost

$260,000

$520,000

Manufacturing overhead cost

$420,000

$705,000

Job 243 entered into production on April 1 and was completed on May 12. The company's cost records show the following information about the job:


Department A

Department B

Machine-hours

250

60

Direct labour-hours

70

120

Direct materials cost

$840

$1,100

Direct labour cost

$610

$880

At the end of the year, the records of Takada showed the following actual cost and operating data for all jobs worked on during the year:


Department A

Department B

Machine-hours

61,000

20,000

Direct labour-hours

28,000

66,000

Direct materials cost

$156,000

$284,000

Manufacturing overhead cost

$385,000

$705,000

Compute the predetermined overhead rates for Department A and Department B.
Compute the total overhead cost applied to Job 243.
Compute the amount of underapplied or overapplied overhead in each department at the end of the current year.

Question 4:
Small Lake Fisheries, Inc. processes miscellaneous fish for various distributors. Two departments involved - Cleaning and Packing. Data relating to kilograms of fish processed in the Cleaning department during May are given below:

 

Kilograms of Fish

Percentage Completed

WIP, May 1

15,000

55%

WIP, May 31

10,000

90%

A total of 240,000 kilograms of fish were started into processing during May. All materials are added at the beginning of processing in the Cleaning Department.

Compute the equivalent units for May for the Cleaning Department, assuming that the company uses the weighted-average method of accounting for units.

Question 5:

Grand Bend Company produces a high-quality insulation material that passes through two production processes. Data for November for the first process follow:

 

Units

Completion with Respect to Materials

Completion with Respect to Conversion

WIP, November 1

80,000

50%

25%

WIP, November 30

60,000

45%

20%

 

Totals

Materials cost in WIP inventory, November 1

$76,600

Conversion cost in WIP inventory, November 1

34,900

Units started into production

300,000

Units transferred to the next process

320,000

Materials costs added during November

410,000

Conversion cost added during November

234,500

Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent unit for November for the first process.

Compute the costs per equivalent unit for November for the first process.

Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in November.

Verified Expert

In the given assignment, we were required to answer the questions asked in the assignment based on cost management and cost accounting principles.The questions were duly solved in the attached Microsoft excel file with duly application of the formulas.

Reference no: EM132220706

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