PracticeChapter02

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

This preview shows pages 1–4. Sign up to view the full content.

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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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
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.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## 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.

### Page1 / 5

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

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online