then what is the total cost of Job #34567?
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(TCO 3) Adnan Company uses process costing. At the beginning of the
month, there were 3,000 units in process, 70% complete with respect to
material, and 60% complete with respect to conversion costs. 20,000
units were started during the month and 20,000 units were completed.
The units in ending Work-In-Process Inventory were 90% complete with
respect to material and 30% complete with respect to conversion costs.
How many equivalent units will be used in calculating the cost per unit
See Chapter 5. The formula shows us that 20,000 + (3,000 × 90%) = 22,700.
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(TCO 6) Handy Display Company manufactures display cases to be
sold to retail stores. The cases come in three sizes: large, medium, and
small. Currently, Handy Display Company uses a single plant-wide
overhead rate to allocate its $3,357,800 of annual manufacturing
overhead. Of this amount, $900,000 is associated with the Large Case
line, $1,404,480 is associated with the Medium Case line, and
$1,350,000 is associated with the Small Case line. Handy Display
Company is currently running a total of 39,600 machine hours: 12,000
in the Large Case line, 15,960 in the Medium Case line, and 12,000 in
the Small Case line. Handy Display Company uses machine hours as
the cost driver for manufacturing overhead costs.
Requirement: Calculate the departmental overhead rate for each of the
three departments listed.