8-71

Problem 8-71 (Algo) Choosing Between Job Costing and Process Costing (LO 8-7) Saratoga Systems produces a single product. The production process requires all material to be brought to the shop floor before any work begins. The materlal is then processed and assembled and then transferred to finished goods inventory. Every unit is completely identical in speciflcation and use, and no customization is possible. Because of the cost of the product, only a few units are produced In any one month. During June, only three units were started, and these were labelled ID061, 10062, and ID063. There was no beginning inventory of any kind on June 1. Records from the raw material store and employee time records show the following requisitions and direct labor costs: The difference in the material cost represents the historical cost of material purchased at different times. The difference in labor cost represents the difference in seniority (not skili) of the individuat employees. Overhead for the month of June totaled $71,925. During March, ID061 and ID062 were completed and transferred to 1inished goods, ID 063 wos stilin process on fune 30. Required: a. Suppose Saratoga Systems uses a job cost system and applies overnead to products based on direct fabot cost what Wit be the cost of the units transferred to finished goods? What will be the amount in Work-in-Process Ending inventory? b. Suppose Saratoga Systems uses process costing and ID063 was 50 percent complete with respoct to conversion cost (direct iabor and overhead cost). Assume that direct materials cost is not traced to indlvidual units. What wilbe the cost of the units transforted to finished goods? What will be the amount in Work-in-Process Ending inventory? c. Based on the provided information, does process costing appeor to be sufficlent? Complete this question by entering your answers in the tabs below. Suppose Saratoga Systems uses a job cost system and applies overhead to products based on direct labor cost. What will be the cost of the units transferred to finished goods? What will be the amount in Work-in-Process Ending Inventorv? . Suppose Saratoga Systems uses a job cost system and applies overhead to products based on direct labor cost. What will be the cost of the units transferred to finished goods? What will be the amount in Work-in-Process Ending inventory? . Suppose Saratoga Systems uses process costing and 10063 was 50 percent complete with respect to conversion cost (direct lab and overhead cost). Assume that direct materials cost is not traced to individual units. What will be the cost of the units transferre to finished goods? What will be the amount in Work-in-Process Ending inventory? =. Based on the provided information, does process costing appear to be sufficient? Complete this question by entering your answers in the tabs below. Suppose Stratoga Systems uses a job cost system and applies overhead to products based on direct labor cost. What will be the cost of the units transferred to finished goods? What will be the amount in Work-in. process Ending inventory? Note: Do not round intermediate calculations. a. Suppose Saratoga Systems uses a job cost system and applies overhead to products based on direct labor cost. What will be the cost of the units transferred to finished goods? What will be the amount in Work-in-Process Ending Inventory? b. Suppose Saratoga Systems uses process costing and IDO63 was 50 percent complete with respect to conversion cost (direct labo and overhead cost). Assume that direct materials cost is not traced to individual units. What will be the cost of the units transferred to finished goods? What will be the amount in Work-in-Process Ending Inventory? c. Based on the provided information, does process costing appear to be sufficient? Complete this question by entering your answers in the tabs below. Suppose Saratoga Systems uses process costing and 10063 was 50 percent complete with respect to conversion cost (direct labor and overhead cost). Assume that direct materials cost is not traced to individual units. What will be the cost of the units transferred to finished goods? What will be the amount in Work-in-Process Ending Inventory? Note: Do not round intermediate calculations. a. Suppose Saratoga Systems uses a job cost system and applies overhead to products based on direct fabor cost. What will be the cost of the units transferred to finished goods? What will be the amount in Work-in-Process Ending Inventory? b. Suppose Saratoga Systems uses process costing and ID063 was 50 percent complete with respect to converslon cost (direct labor and overhead cost). Assume that direct materlals cost is not traced to individual units. What will be the cost of the units transferred to finished goods? What will be the amount in Work-in-Process Ending Inventory? c. Based on the provided information, does process costing appear to be sufficient? Complete this question by entering your answers in the tabs below. Based on the provided information, does process costing appear to be sufficient