PracticeChapter02 - CHAPTER 2 21 a b c d e Allocation Direct tracing Allocation Direct tracing Driver tracing potential driver machine hours f

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CHAPTER 2 2–1 a. Allocation b. Direct tracing c. Allocation d. Direct tracing e. Driver tracing; potential driver— machine hours f. Direct tracing g. Driver tracing; potential driver— number of square feet occupied h. Direct tracing i. Driver tracing; potential driver— number of orders j. Direct tracing k. Allocation l. Driver tracing; potential driver— number of employees m. Direct tracing n. Allocation
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2–3 1. Direct materials used = $50,800 + $150,000 – $21,500 = $179,300 2. Direct materials. ......................................................... $ 179,300 Direct labor. ................................................................ 200,000 Overhead. ................................................................... 324,700 Total manufacturing cost. ........................................ $ 704,000 Add: Beginning WIP. ................................................. 58,500 Less: Ending WIP. ..................................................... (23,500 ) Cost of goods manufactured. .................................. $ 739,000 Unit cost of goods manufactured = $739,000/100,000 = $7.39 3. Direct labor = $7.39 – $1.70 – $3.24 = $2.45 Prime cost = $1.70 + $2.45 = $4.15 Conversion cost = $2.45 + $3.24 = $5.69
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2–6 1. Units in ending finished goods = 6,000 + 270,000 – 274,000 = 2,000 Costs of finished goods ending inventory = 2,000 × $5.10* = $10,200 *Since the unit cost of beginning finished goods and the unit cost of current production both equal $5.10, the unit cost of ending finished goods must also equal $5.10.
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This note was uploaded on 05/08/2011 for the course ACTG 2P21 taught by Professor Scarborough during the Winter '10 term at Brock University, Canada.

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PracticeChapter02 - CHAPTER 2 21 a b c d e Allocation Direct tracing Allocation Direct tracing Driver tracing potential driver machine hours f

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