By March 31, Jobs 89 and 91 were completed and sold. The rest of the jobs remained in process. A. Calculate the plantwide overhead rate. B. Prepare a job-order cost sheet (as shown in the class). C. Calculate the Work in Process on March 31 and calculate the cost of goods sold for March. D. Assume Pribil marks up cost by 40%. What is the selling price of Jobs 89 and 91? Q3. Bower Company manufactures a product in a factory that has two producing departments, Cutting and Stitching, and two support departments, D1 and D2. The activity driver for D1 is number of employees, and the activity driver for D2 is number of machine hours. The following data pertain to Bower: Page 1 of 4
Support Departments Producing Departments D1 D2 Cutting Stitching Direct costs $210,000 $165,000 $130,000 $78,500 Normal activity: Number of employees - 40 80 170 Machine hours 800 - 15,000 5,000 Required: A. Calculate the cost assignment ratios to be used under the direct method for departments D1 and D2. B. Allocate the support department costs to the producing departments by using the direct method. Q4. Montgomery Corporation produces boxes of cookies that go through three departments: Mixing, Cooking and Packaging. During April, Montgomery produced 250,000 boxes of cookies with the following costs: Mixing department Cooking department Packaging department Direct materials $325,000 $110,000 $90,000 Direct labor 65,000 35,000 80,000 Applied Overhead 85,000 30,000 95,000 Required: A. Calculate the costs transferred out of each department.
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