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PART 4 Process Costing - First-In First-Out General Information The I See The Light Company has a related company that produces the figurines. They use process costing in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars. The material is added at the beginning of the process. The labor and overhead costs are assumed to be added uniformly throughout. Month of January Selected information for January is presented below. Note that the applied overhead rate was 50% of direct labor costs in the molding department. Molding Department Goods in process as of January 1 were 3,500 figurines at a cost of $64,400.00. Of this amount, $56,000.00 was from raw materials added, $5,600.00 for labor and $2,800.00 for overhead. These 3,500 figurines were assumed to be 80.00% complete as to labor and overhead. During January, 22,000 units were started, $356,180.00 of materials and $42,200.00 of labor costs were incurred. The 8,000 figurines that were in-process at the end of January were assumed to be 80.00% complete to labor and overhead. All figurines in January passed inspection. MOLDING Physical flow of Un WordPress Beginning Unit Started Prod Units to Account for 112.01 12 Total transferred out Wo Process Ending Total Accounted for 112.00) 12.04 (1205) quatent Unit Merteren COOROGO 12.00) (1207) Total cost of Materials per 12.00 Total cost of Conversion this parte d onde te places (12.10) 112.11 12.123 version this period Pound to seven places, 18. BEBER 12.13) transferred material and convesion Round to two places, [12.14 Costa Shending Inventory material and comes on found to the places (12.15) (12.16) Total Cost accounted for Round to the places, B D, 19. PART 5 Job Order Costing To keep records of the actual cost of a special order job, a Job Order Cost System has been developed Overhead is applied at the rate of 50% of the direct labor cost Job Order Costing Section On January 1, 20x2, Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customcred lamps. The following set of transactions occurred from January 5 until the job was completed: 5 Jan Purchased 4,000 Lamp Kits @ $16.40 per kt. 9-Jan 4,050 sets of Lamp Kits were requisitioned, including all those in the Beginning Inventory 17-Jan Payroll of 620 Direct Labor Hours @ $9.60 per hour, 30 Jan Payrol of 670 Direct Labor Hours $9.85 per hour. 30 Jan 3.990 Lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing. Month End Overhead Information Actual Variable Manufacturing Overhead Actual Fored Manufacturing Overhead $ 1,367.40 $ 40.873.45 Round to two places, $#ONE Cost of Direct Material incurred in Manufacturing Job 2407 40 420.00 COL170.00 B (13.01) Cost of Direct Labor incurred in Manufacturing Job 2407 -5,952 51.50173.02) $49.5 Total = 12.551.50 Cost of Manufacturing Overne Applied to 2407 x 50% 275.751 Cost of manufacturing one lamp 15.5 73.03) (13.04)