1. A kind of pen coded as SCR11 is produced by a pen production business in Molding (plastics), Ink Injection, Assembling and Packaging production line departments. Quantity and monetary information of the period are given below. Calculate the costs of the pens completed and non-completed in the PACKAGING DEPARTMENT.

Quantity information:

BUIP : 24.000 Pcs (DM %40, CC..%80)

SIP : 160.000 Pcs.

EUIP : 40.000 Pcs. (DM %60, CC.%30)

Monetary information:

BUIP Prior departments cost : 14.080 $

BUIP Prior period DM cost : 7.200 $

BUIP Prior period conversion cost : 6.000 $

SIP Prior departments cost : 30.040 $

DIRECT MATERIAL (Packaging material)(as correct as possible method):

Purchased

2.12.2003 8.000 Kg (0.40 $/Kg)

6.12.2003 3.000 Kg (0.42 $/Kg)

12.12.2003 4.000 Kg (0.44 $/Kg)

18.12.2003 8.000 Kg (0.48 $/Kg)

Used

3.12.2003 6.000 Kg

16.12.2003 7.000 Kg

24.12.2003 9.000 Kg

25.12.2003 5.000 Kg (0.50 $/Kg)

DIRECT LABOR (Packaging labor): ALL PENS SCR11

Molding Dept. 8 Employees 160 Hours each 480 Hours 50$/H

Ink Injection Dept. 6 Employees 160 Hours each 450 Hours 45$/H

Assembling Dept. 24 Employees 160 Hours each 2200 Hours 35$/H

Packaging Dept. 16 Employees 160 Hours each 1860 Hours 40$/H

MANUFACTURING OVERHEADS

Periodical factory overheads have to be computed with the information given below: the first allocation total amounts and cost drivers needed to allocate to the cost objects by the most accurate method:

Main.H. KwH DLH

Molding 28.000 $ Plastics Quant. 80 40000 1280

Ink Injection 14.000 $ Ink Quant. 40 20000 960

Assembling 23.000 $ Completed Pens 30 15000 3840

Packaging 15.000 $ Pack.Mat. 50 25000 2560

Maintenance 12.000 $ Maintenance Hours 20 10000 320

Energy 10.000 $ KwH 10 5000 160

Production Mngt. 11.000 $ DLH 10 5000 80

Information necessary for the third apportionment (Absorption) is the direct labor hours for all the departments.