6.Assume that the company uses the reciprocal method in distributing service department costs and that the...
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6.Assume that the company uses the reciprocal method in distributing service department costs and that the Packaging department applies factory overhead based on requisitions. How much is the over/(under) applied factory overhead if there are 4,250 requisitions and actual factory overhead incurred by the department was P1,173,398? Indicate overapplied as a positive number, ex. 123456, and underapplied as a number in a parenthesis, ex. (123456). Jeang Corporation has two service departments and three producing departments. The following were gathered from their operations: Service Departments Maintenance Storeroom Producing Departments Machinery Assembly Packaging P500,000 540,000 1,200,000 1,784,000 872,000 A factory survey revealed the following: Departments Maintenance Services Number of Direct Requisitions Labor Maintenance Storeroom Machinery Assembly Packaging Hours 400 14% 32% 3,500 20,000 26% 6,000 36,000 28% 4,100 18,000 The costs of the maintenance department are allocated on the basis of percent of services rendered while the costs of the Storeroom department are allocated based on number of requisitions. 7.A company manufactures a product that passes through two departments. Data for the current month for the first department follow: Units - Work in process beg, 5,000 units; units transferred out, 42,000 units; Work in process, end, 8,000. Costs: Work in process, beg - P4,320 of materials; P1,040 of labor; P1,790 of overhead. During the month, the department incurred P52,800 for materials; P21,500 for labor and P32,250 for overhead. The beginning work in process inventory was 80% complete with respect to materials and 60% complete with respect to labor and overhead. The ending work in process inventory was 75% complete with respect to materials and 50% complete with respect to labor and overhead. Using average costing, compute for the cost per equivalent unit. 8.Compute the total cost of the units transferred to finished goods Inventory. JKL FABRICATORS Inc., manufactures frames to bicycles. Each frame passes through three processes: CUTTING, WELDING & PAINTING. In July, the PAINTING Department reported the following data. Beginning WIP consisted of 40,500 units, 95% complete with respect to direct labor and overhead. Costs in the beginning inventory included prime cost, P15,000; applied overhead P12,110 and transferred-in, P31,500. Costs added to production during the month were direct materials, P72,900; direct labor P64,880; transferred-in, P102,060. Overhead was assigned using the following information: Activity Rate Inspection Maintenance Receiving P7.50 per inspection hour P12 per maintenance hour P10 per receiving order Actual Driver Usage 3,000 inspection hours 1,200 maintenance hours 1,000 receiving orders At the end of the month, 121,500 units were transferred out to the Finished Goods Inventory, leaving 13,500 units in the ending work in process, 25% to complete. Units are inspected when they are 90% converted afterwards paints are added. The company is using first-in-first out method. 9. Compute for the total cost accounted for using FIFO. ATOZ company's product is manufactured in two departments. Units are inspected at the end of the production process in the first department. Data related to the month of May are: WIP, beg (60% materials, 35% labor, and 25% FOH), 1,000 units; started in process this period, 9,000 units; WIP,end (100% materials, 75% labor and 50% FOH), 1,500 units. Cost data follows: WIP,beg Materials Labor P1,260 Cost this Month P36,240 770 10,780 FOH 1,400 21,725 6.Assume that the company uses the reciprocal method in distributing service department costs and that the Packaging department applies factory overhead based on requisitions. How much is the over/(under) applied factory overhead if there are 4,250 requisitions and actual factory overhead incurred by the department was P1,173,398? Indicate overapplied as a positive number, ex. 123456, and underapplied as a number in a parenthesis, ex. (123456). Jeang Corporation has two service departments and three producing departments. The following were gathered from their operations: Service Departments Maintenance Storeroom Producing Departments Machinery Assembly Packaging P500,000 540,000 1,200,000 1,784,000 872,000 A factory survey revealed the following: Departments Maintenance Services Number of Direct Requisitions Labor Maintenance Storeroom Machinery Assembly Packaging Hours 400 14% 32% 3,500 20,000 26% 6,000 36,000 28% 4,100 18,000 The costs of the maintenance department are allocated on the basis of percent of services rendered while the costs of the Storeroom department are allocated based on number of requisitions. 7.A company manufactures a product that passes through two departments. Data for the current month for the first department follow: Units - Work in process beg, 5,000 units; units transferred out, 42,000 units; Work in process, end, 8,000. Costs: Work in process, beg - P4,320 of materials; P1,040 of labor; P1,790 of overhead. During the month, the department incurred P52,800 for materials; P21,500 for labor and P32,250 for overhead. The beginning work in process inventory was 80% complete with respect to materials and 60% complete with respect to labor and overhead. The ending work in process inventory was 75% complete with respect to materials and 50% complete with respect to labor and overhead. Using average costing, compute for the cost per equivalent unit. 8.Compute the total cost of the units transferred to finished goods Inventory. JKL FABRICATORS Inc., manufactures frames to bicycles. Each frame passes through three processes: CUTTING, WELDING & PAINTING. In July, the PAINTING Department reported the following data. Beginning WIP consisted of 40,500 units, 95% complete with respect to direct labor and overhead. Costs in the beginning inventory included prime cost, P15,000; applied overhead P12,110 and transferred-in, P31,500. Costs added to production during the month were direct materials, P72,900; direct labor P64,880; transferred-in, P102,060. Overhead was assigned using the following information: Activity Rate Inspection Maintenance Receiving P7.50 per inspection hour P12 per maintenance hour P10 per receiving order Actual Driver Usage 3,000 inspection hours 1,200 maintenance hours 1,000 receiving orders At the end of the month, 121,500 units were transferred out to the Finished Goods Inventory, leaving 13,500 units in the ending work in process, 25% to complete. Units are inspected when they are 90% converted afterwards paints are added. The company is using first-in-first out method. 9. Compute for the total cost accounted for using FIFO. ATOZ company's product is manufactured in two departments. Units are inspected at the end of the production process in the first department. Data related to the month of May are: WIP, beg (60% materials, 35% labor, and 25% FOH), 1,000 units; started in process this period, 9,000 units; WIP,end (100% materials, 75% labor and 50% FOH), 1,500 units. Cost data follows: WIP,beg Materials Labor P1,260 Cost this Month P36,240 770 10,780 FOH 1,400 21,725
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