Demo-case-6 - allocation base. 2. Compute the reported unit...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Demonstration Case 1 In the first quarter of operation, the Blending Department of ChemUSA produced 50,000 barrels of Compound X and left 20,000 barrels in ending work-in-process inventory which was, on average, 55 percent completed. A total of $231,800 was incurred in that period. There was no beginning work-in-process inventory. Required: 1. Determine the amount of Compound X started in the first quarter. 2. Compute the cost of Compound X transferred to finished goods and the amount of work- in-process inventory as of the end of the first quarter. Demonstration Case 2 Capable Golf Cart, Inc. (CGC) manufactures two models of golf cart: LX and EX. The budget data for next month is available. LX EX Total Units produced 50 30 80 Direct labor hours 2,000 3,000 5,000 Machine hours 1,500 1,200 2,700 Direct materials $125,000 $90,000 $215,000 Direct labor 90,000 60,000 150,000 Manufacturing overhead 202,500 Total $567,500 Required: 1. Compute the reported unit cost for each product if direct labor hours are used as the
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: allocation base. 2. Compute the reported unit cost for each product if direct labor costs are used as the allocation base. 3. Compute the reported unit cost for each product if machine hours are used as the allocation base. Demonstration Case 3 Jim is a florist who runs Bountiful Flower Shop as a sole owner. During the third week of June, he received two orders for flower bouquets that required same operations but different flower/basket combinations. Orders 471 and 472 were for a wedding hall and a business conference, respectively. The following information was available. Order 471 Order 472 Total Number of bouquets 120 90 210 Flowers $1,800 $1,080 $2,880 Baskets 600 360 960 Supplies 240 90 330 Total costs of materials $2,640 $1,530 $4,170 Direct labor in operation $630 Overhead in operation 1,155 Total costs in operation $1,785 Required: Determine the total cost and unit cost for Orders 471 and 472....
View Full Document

Ask a homework question - tutors are online