chapter%2062 - Accounting 2102 Farmer Chapter 6 Practice...

Accounting 2102
Farmer
Chapter 6 Practice
Don’t Cry Over Spilled Milk, Inc
Don’t Cry Over Spilled Milk, Inc., a manufacturer of mops, uses the weighted average method in
its processing costing system. Don’t Cry uses a normal costing system in the application of its
manufacturing overhead (MOH) to production; MOH costs are applied to production on the basis
of machine hours logged during the period. Total budgeted MOH for the period was $400,000
and total budgeted machine hours were 100,000. The following data concern the operations of
the company’s first processing department, Assembly, for June 2007.
Beginning Work in Process 800 mops, 60% complete with respect to direct
materials, 10% complete with respect to conversion
Costs in Beginning Work in Process $3,712 (of this amount, $1,296 is for direct materials)
Units Started During June 16,000 mops
Costs Added During June direct materials $47,076; direct labor $216,213
Manufacturing Overhead actual machine hours logged during June were 70,250,
actual MOH charges incurred during June were
$280,000