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.

Gold Star Products, Inc., for the month of January
Quantity		Stage of Completion of Ending Work in Process
Work in Process - Beginning	400	Materials	complete
Started in Production - Current Month	600	Labor	60%
Transferred Out to Next Department	800	Overhead	60%
Work in Process - Ending	190
Lost in Production
Costs
Work in Process - Beginning:
Materials	$9,968.00
Labor	2,224.80
Overhead	1,898.40
Total	$14,091.20
Current Month:
Materials	$15,041.11
Labor	11,589.19
Overhead	9,895.25
Total	$36,525.55

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.

Paxton, Inc. for March
Quantity				Costs	Beginning Work in Process			Current Month
Work in Process-Beginning			24,000	Materials		$50,000	$180,000
Started in Production-Current Month			176,000	Labor		11,460	110,780
Transferred Out to Finished Goods				Overhead		3,820	40,110
Joint Product No. 1			100,000	Total		$65,280	$330,890
Joint Product No. 2			70,000
Work in Process-Ending			30,000
Stage of Completion of  Beginning Work in Process   Ending Work in Process
Materials	100%      100%
Labor	60%        70%
Overhead	60%        70%
Sales Value
Joint Product No. 1		$2.00 per unit
Joint Product No. 2		$4.00 per unit
Additional Completion Costs
Joint Product No. 1		$0.30 per unit
Joint Product No. 2		-0-

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.

Ryder Furniture Corporation for October
Quantity
Work in Process - Beginning	- 0 -
Started in Production - Current Month	3,500
Transferred Out to Next Department	3,200
By-Product Removed	300
Work in Process - Ending	- 0 -
Common Costs
Materials	$59,850
Labor	15,400
Overhead	11,200
Total	$86,450
Additional Processing of By-Product
Materials	$ 3,630
Labor	1,905
Overhead	1,275
Total	$ 6,810
Other Data
Sales Price of By-Product	$40.00 per unit
Selling and Administrative Costs	10 percent of sales
Normal Net Profit	5 percent of sales

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?