Work-in-process inventory, January 1 300 $50,000
Started during the quarter 800
Completed during the quarter 600
Work-in-process inventory, March 31 100
Costs added during the quarter $720,000
Beginning work-in-process inventory was 50% complete for direct labor costs.
Ending work-in-process inventory was 75% complete for direct labor costs. What is
the equivalent amount of units of production using the weighted-average unit cost
inventory valuation method?
Equivalent units of production for the quarter are 675, computed as follows:
Units completed + completed portion of WIP
(600 + (100 × 75%)) = 675
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(TCO 2) Sweet Co. uses budgeted overhead rates to apply overhead to individual
jobs. They use a system based on direct labor hours. Last year, the company
made the following estimates for this year.
Direct labor costs $42,000,000
Factory overhead costs $7,500,000
Direct Labor Hours 150,000
Machine Hours 100,000
(a) What is the budgeted overhead rate for the company?
(b) If Job #34567 had the following:
Material costs were $400,000;
Direct labor costs were $300,000;
Direct labor hours were 15,000; and
Machine hours were 20,000,
Then what is the total cost of Job #34567?
A. $50 per direct labor hour B. 1,450,000