Question
1. Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding department: Units Direct materials Percent
1.
Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding department:
Units | Direct materials Percent Complete | Conversion Percent Complete | |
---|---|---|---|
Beginning work in process inventory | 39,000 | 100% | 60% |
Units started and completed | 124,000 | ||
Units completed and transferred out | 163,000 | ||
Ending work in process inventory | 37,000 | 100% | 30% |
Production cost information for the Molding department follows.
Beginning work in process | ||
---|---|---|
Direct materials | $ 57,000 | |
Conversion | 62,850 | $ 119,850 |
Costs added this period | ||
Direct materials | $ 380,100 | |
Conversion | 613,150 | $ 993,250 |
Calculate the cost per equivalent unit of conversion.
2.
Crinkle Cut Clothes Company manufactures two products CC1 and CC2. Current direct material and direct labor costs are detailed below. Next year the company wishes to use a plantwide overhead rate with direct labor hours as its allocation base. Next year's overhead is budgeted to be $367,120. The direct labor and direct materials costs are budgeted to be consistent with the current year. Direct labor costs $25 per hour and the company expects to manufacture 34,000 units of CC1 and 103,000 units of CC2 next year.
Direct Material per Unit | Direct Labor Dollars per Unit | |
---|---|---|
CC1 | $ 38.30 | $ 17.50 |
CC2 | $ 26.40 | $ 16.50 |
Compute the plantwide overhead rate for next year.
3.
A company uses the FIFO method for inventory costing. At the beginning of the period, it reported the following data:
Units | Coversation Percent Complete | |
---|---|---|
Beginning work in process inventory | 26,000 | 40% |
Units started this period | 179,000 | |
Units completed and transferred out | 177,000 | |
Ending work in process inventory | 28,000 | 75% |
The production department data related to conversion costs follows:
Costs of beginning work in process | $ 111,000 |
---|---|
Costs added this period | 738,825 |
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