Reference no: EM13342506
Problem 1
Prepare a schedule of equivalent units and a cost of production report for Century Corporation for April. There was zero beginning work in process; 4,200 units were started; and 4,000 units were completed and transferred out. The ending work in process was 100% complete for materials and 60% complete for labor and overhead. The costs incurred were $25,200 for materials; $20,600 for labor; and $16,480 for overhead.
Problem 2
Base you answer on the following data from Gold Star Products, Inc., for the month of January. The company uses the average cost method of accounting for beginning work in process.
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Gold Star Products, Inc., for the month of January
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Quantity
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Stage of Completion of Ending
Work in Process
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Work in Process - Beginning
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400
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Materials
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complete
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Started in Production - Current Month
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600
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Labor
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60%
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Transferred Out to Next Department
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800
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Overhead
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60%
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Work in Process - Ending
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190
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Lost in Production
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Costs
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Work in Process - Beginning:
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Materials
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$9,968.00
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Labor
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2,224.80
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Overhead
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1,898.40
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Total
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$14,091.20
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Current Month:
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Materials
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$15,041.11
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Labor
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11,589.19
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Overhead
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9,895.25
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Total
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$36,525.55
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19. How many units were lost in production?
20. The equivalent production for materials, labor, and overhead, respectively is:
21. The unit costs of materials, labor, and overhead, respectively are:
22. The costs transferred to the next department total:
23. The cost of the labor in ending Work in Process is:
Problem 3
Base your answer on the data from Paxton, Inc. for March. Paxton uses the average costing method.
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Paxton, Inc. for March
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Quantity
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Costs
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Beginning Work in Process
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Current Month
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Work in Process-Beginning
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24,000
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Materials
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$50,000
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$180,000
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Started in Production-Current Month
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176,000
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Labor
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11,460
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110,780
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Transferred Out to Finished Goods
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Overhead
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3,820
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40,110
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Joint Product No. 1
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100,000
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Total
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$65,280
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$330,890
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Joint Product No. 2
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70,000
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Work in Process-Ending
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30,000
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Stage of Completion of Beginning Work in Process Ending Work in Process
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Materials
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100% 100%
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Labor
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60% 70%
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Overhead
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60% 70%
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Sales Value
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Joint Product No. 1
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$2.00 per unit
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Joint Product No. 2
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$4.00 per unit
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Additional Completion Costs
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Joint Product No. 1
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$0.30 per unit
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Joint Product No. 2
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-0-
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What are the equivalent production units for materials, labor, and overhead, respectively?
What is the total cost to be accounted for?
What are the unit costs of materials, labor, and overhead, respectively?
What is the total cost transferred out?
Problem 4
The standard materials cost of a product is $40 per unit, based on 10 pounds of raw materials at a standard cost of $4 per pound. During January 20X9, 1,000 units of product were produced, using 10,200 pounds of raw material at a cost of $4.20 per pound.
The standard cost for materials for January is:
The total materials variance for the month is:
The materials quantity variance is:
The materials price variance is:
Problem 5
Base your answer on the following data from Ryder Furniture Corporation for October.
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Ryder Furniture Corporation for October
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Quantity
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Work in Process - Beginning
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- 0 -
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Started in Production - Current Month
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3,500
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Transferred Out to Next Department
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3,200
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By-Product Removed
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300
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Work in Process - Ending
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- 0 -
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Common Costs
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Materials
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$59,850
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Labor
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15,400
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Overhead
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11,200
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Total
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$86,450
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Additional Processing of By-Product
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Materials
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$ 3,630
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Labor
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1,905
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Overhead
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1,275
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Total
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$ 6,810
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Other Data
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Sales Price of By-Product
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$40.00 per unit
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Selling and Administrative Costs
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10 percent of sales
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Normal Net Profit
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5 percent of sales
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What is the total estimated manufacturing cost of the by-product using the reversal cost method?
What is the estimated manufacturing cost before separation, using the reversal cost method?