Question
1. Enviro Corporation manufactures a special liquid cleaner at its Green plant. Operating data for June follow: Materials $ 308,000 Labor 38,000 Manufacturing overhead 246,000
1. Enviro Corporation manufactures a special liquid cleaner at its Green plant. Operating data for June follow:
Materials | $ | 308,000 | |
Labor | 38,000 | ||
Manufacturing overhead | 246,000 | ||
|
The Green plant produced 1,600,000 gallons in June. The plant never has any beginning or ending inventories.
Required:
Compute the cost per gallon of liquid cleaner produced in June. (Round your answer to 2 decimal places.)
2.Graham Petroleum produces oil. On May 1, it had no work-in-process inventory. It started production of 191 million barrels of oil in May and shipped 171 million barrels in the pipeline. The costs of the resources used by Graham in May consist of the following:
Materials | $ | 2,390 | million | ||||
Conversion costs (labor and overhead) | $ | 3,220 | million | ||||
Required:
The production supervisor estimates that the ending work in process is 80 percent complete on May 31. Compute the cost of oil shipped in the pipeline and the amount in work-in-process ending inventory as of May 31. (Do not round intermediate calculations. Enter your answers in millions. For example, enter "1" instead of "1,000,000".)
3.Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow:
Basic | Dominator | Total | |||||||
Units produced | 800 | 300 | 1,100 | ||||||
Machine-hours | 4,100 | 2,700 | 6,800 | ||||||
Direct labor-hours | 2,100 | 1,900 | 4,000 | ||||||
Direct materials costs | $ | 9,200 | $ | 3,350 | $ | 12,550 | |||
Direct labor costs | 64,200 | 39,800 | 104,000 | ||||||
Manufacturing overhead costs | 136,080 | ||||||||
Total costs | $ | 252,630 | |||||||
Required:
Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor costs to allocate overhead costs. (Round your answer to 2 decimal places.)
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