Job order costing process costing question 3 3 tco 3

This preview shows page 3 - 6 out of 6 pages.

job order costing. process costing.
Question 3. 3. (TCO 3) Kerner Manufacturing uses a process cost system to manufacture laptop computers. The following information summarizes operations relating to laptop computer model #KJK20 during the quarter ending March 31: Units Direct Labor Work-in-process inventory, January 1 100 $50,000 Started during the quarter 500 Completed during the quarter 400 Work-in-process inventory, March 31 200 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 unit of production using the
weighted-average unit cost inventory valuation method? (Points : 7)
4. (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 $48,000,000 Factory overhead costs $6,400,000 Direct Labor Hours 80,000 Machine Hours 110,000 (a) What is the budgeted overhead rate for the company? (b) If Job #34567 had the following: Material costs were $500,000; Direct labor costs were $450,000; Direct labor hours were 25,000; and Machine hours were 36,000, then what is the total cost of Job #34567? (Points : 30)
Manufacturing overhead (25000 x 80) $2,000,000 Total cost of job $2,950,000 5. (TCO 3) Adnan Company uses process costing. At the beginning of the month, there were 8,000 units in process, 90% complete with respect to material and 80% complete with respect to conversion costs. 40,000 units were started during the month and 40,000 units were completed. The units in ending Work- In-Process Inventory were 70% complete with respect to material and 10% complete with respect to conversion costs. How many equivalent units will be used in calculating the cost per unit for materials? (Points : 30)

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture