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188.00 S860,400 Expanded Problem #1 (20 points) The inventory at June 1 and costs charged to Work in Process Department 60 during June are as
188.00 S860,400 Expanded Problem #1 (20 points) The inventory at June 1 and costs charged to Work in Process Department 60 during June are as follows: Beginning Inventory: 3,800 units, 80% completed ($25,000 materials, S35,400 conversions 60,400 Direct materials, 32,000 units 368,000 Direct labor 244,000 Factory overhead Total cost to be accounted for During June, 32,000 units were placed into production and 31.206 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units which were 40% completed. Create a Cost of Production Report. Your report should be clean, professional, and neat. Expanded Problem #2 (10 points) As an assistant cost accountant for Firewall Industries, you have been assigned to review the activity base for the predetermined factory overhead rate. The president, JoJo Gunn, is concerned about the wide fluctuation in the amount of over- or underapplied overhead in recent years. An analysis of the company's operations and use of the current overhead rate (direct labor cost) has narrowed the possible alternative overhead bases to direct labor cost and machine hours. For the past five years, the following data have been gathered: Actual overhead Applied overhead Over) underapplied overhead Direct labor cost Machine hours 5790.0005570,000 5 935.000845,000 $760,000 777.000 882.000 924.000 340,000 777.000 $13.000 5 (12.000 5 11.000 $5,000 $ (17.2001 $3.385.000 54410.000 54620.000 $4.200,000 $3,885.000 93.000 104.000 111.000 100,400 91.600 Calculate a predetermined factory overhead rate for each alternative base. 2. For each of the past five years, determine the over- or underapplied overhead, based on the two predetermined overhead rates you've developed. Select a predetermined overhead rate that the company should use, and discuss the basis for your recommendation. Your solutions should all be presented in one document with a clean, professional appearance
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