PROBLEM TEAM 2-4A
(a)
Department A:
Department B:
Department C:
$930,000 $600,000 = 155%
$800,000 40,000 = $20.00
$750,000 150,000 = $5.00
(b)
155% of direct labor cost
$20.00 per direct labor hour
$5.00 per machine hour
Department
Manufacturing Costs
Direct materials
Direct labor
Overhead applied
Total
A
$92,000
$48,000
$74,400
$214,400
(c)
B
$86,000
$35,000
$70,000
$191,000
C
$64,000
$50,400
$63,000
$177,400
Department
Manufacturing Overhead
Incurred
Applied
Under (over) applied
A
$76,000
$74,400
$1,600
B
$74,000
$70,000
$4,000
C
$61,500
$63,000
$(1,500)
TEAM PROBLEM 3-3A
(a) (1)
Physical units
R12
F24
Refrigerators
Freezers
Units to be accounted for
Work in process, June 1
Started into production
Total units
Units accounted for
Transferred out
Work in process, June 30
Total units
(2)
Equivalent units
R12 Refrigerators
Conversion
Materials
Costs
Units transferred out
Work in process, June 30
(x,xxx X xxx%)
(x,xxx X xx%)
Total equivalent units
F24 Freezers
Materials
Conversion
Costs
Plant A
R12
Plant B
F24
Refrigerators
Freezers
Units transferred out
Work in process, June 30
(x,xxx X xxx%)
(x,xxx X xx%)
Total equivalent units
(3)
Unit costs
Materials ($xxx,xxx xx,xxx)
($xxx,xxx xx,xxx)
Conversion costs ($xxx,xxx xx,xxx)
($xxx,xxx xx,xxx)
Total
(4)
Plant Refrigerators
Costs A
R12 accounted for
Transferred out (xx,xxx X $xx)
Work in process
Materials (x,xxx X $xx)
Conversion costs (x,xxx X $xx.xx)
Total costs
Plant B
F24 Freezers
Costs accounted for
Transferred out (xx,xxx X $xx)
Work in process
Materials (x,xxx X $xx)
Conversion costs (x,xxx X $xx)
Total costs
(b)
STEIN CORPORATION
Stamping DepartmentPlant A
Production Cost Report
For the Month Ended June 30, 2005
Equivalent Units
Quantities
Units to be accounted for
Work in process, June 1
Started into production
Total units
Physical
Units
Conversion
Costs
Materials
(Step 1)
(Step 2)
Units accounted for
Transferred out
Work in process, June 30
Total units
Costs
Materials
Unit costs (Step 3)
Costs in June
Equivalent units
Unit costs [(a) (b)]
Costs to be accounted for
Work in process, June 1
Started into production
Total costs
Cost Reconciliation Schedule (Step 4)
Costs accounted for
Transferred out (xx,xxx X $xx)
Work in process, June 30
Materials (x,xxx X $xx)
Conversion costs (x,xxx X $xx)
Total costs
(a)
(b)
Conversion
Costs
Total
BYP 2-2
1 (a)
(b)
Essay; 20 words should do it.
2 (a)
(b)
Essay: 90 - 100 words should do it.
3 (a)
(b)
Essay: 40 - 50 words should do it.
4 (a)
(b)
Essay: 100 - 110 words should do it.