departmental rates with department A based on direct labor hours and department

Departmental rates with department a based on direct

This preview shows page 45 - 46 out of 46 pages.

3. departmental rates with department A based on direct labor hours and department B using machine hours.A $50,000/10,000 = $5 DLHB $175,000/25,000 = $7 MHb. The variation in the cost per unit is due to the variation in consumption.150. a.Materials156,800Accounts Payable156,800b.Work-in-Process70,000Materials70,000c.Work-in-Process (2,000 ´ $14) 28,000Factory Overhead (500 ´ $14)7,000Wages Payable35,000d.Factory Overhead7,000Materials7,000e.Factory Overhead14,000Accumulated Depreciation14,000f.Factory Overhead5,600Various Accounts5,600g.Work-in-Process (28,000 ´ 125%)35,000Factory Overhead35,000h.Finished Goods84,000Work-in-Process84,000i.Cash77,000Sales77,000Cost of Goods Sold49,000Finished Goods Inventory49,000
Background image
151. 1. ActivityCostAmount of DriverActivity ratesetups$ 120,0006,000$ 20purchasing80,00020,0004other overhead150,00075,00022. Job 1001Job 1002Job 1003Job 1004TotalBalance 9/1$44,900$60,700$30,5000136,100dm54,00037,00025,00041,000157,000dl80,00038,50043,00071,000232,500# setups $20( 40) 800 (10) 200(30) 600(200) 4,0005,600# parts $4(300) 1,200(180) 720(400) 1,600(500) 2,0005,520dlhours $2(5,000) 10,000(2,400) 4,800(5,200) 10,400(1,200) 2,40027,600 TOTAL$190,900$141,920$111,100$120,400$564,3203. BWIP = $136,100EWIP 9/30 = BWIP 10/1 = jobs 1002 + 1004 = $141,920 + $120,400 = $262,3204. CGM = jobs 1001 + 1003 = $190,900 + $111,100 = $302,0005. CGS = jobs 1001 + 1003 = $190,900 + $111,100 = $302,0006. WIP___________________________________________BI 136,100 | 302,000DM 157,000 |DL 232,500 |MOH 38,720 |_________________ |__________________________EI 262,320STATEMENT OF COST OF GOODS MANUFACTUREDLowland CorporationMonth of SeptemberDirect materials used in production $157,000Direct labor 232,500Manufacturing overhead applied 38,720Total manufacturing costs added 428,220 Add: beginning work in process 136,100 Less: ending work in process 262,320Cost of Goods manufactured 302,000
Background image

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture