E21-3 The ledger of Jocary Corporation has the following work in process account.

Work in Process Painting
5/1	Balance	3,590
5/31	Materials	5,160	5/31	Transferred out	?
5/31	Labor	2,740
5/31	Overhead	1,380
		Subtotal 12,870
5/31	End Balance	?

Production records show that there were 400 units in the beginning inventory, 30% complete, 1,400 units started, and 1,500 units transferred out. The beginning work in process had materials cost of $2,040 and conversion costs of $1,550. The units in ending inventory were 40% complete. Materials are entered at the beginning of the

painting process.

Instructions

(a)How many units are in process on May 31?

(b)What is the unit materials cost for May?and (c)What is the unit conversion cost for May?

(d) What is the total cost of units transferred out in May?

(e)What is the cost of the May 31 inventory?

E21-5In Vero Corporation, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Department in selected months during 2020 are as follows.

Month	Beginning Work in Process	Units	Ending work in Process
	Units	Conversion Cost%	Transferred Out	Units	Conversion Cost%
January	--0--	-----	9,000	2,000	60
March	--0--	-----	12,000	3,000	30
May	--0--	-----	16,000	7,000	80
July	--0--	-----	10,000	1,500	40

Instructions:

(a) Compute the physical units for January and May

(b) Compute the equivalent units of production for (1) materials and (2) conversion costs for each month

E21-6The Cutting Department of Cassel Company has the following production and cost data for July.

Production	Costs
Transferred out 12,000 units.	Beginning work in process	$--0
Started 3000 units that are 60% complete as to conversion costs and 100% complete as to materials at July 31	Materials	45,000
Labor	16,200
Manufacturing Overhead	18,300

Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.

Instructions:

1. Determine the equivalent units of production for (1) materials and (2) conversion costs

1. Compute unit costs and prepare a cost reconciliation schedule.

Problema 21-1A RoprinCorporation manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging. All materials are entered at the beginning of each process. On October 1, 2020, inventories consisted of Raw Materials $26,000, Work In ProcessMixing $0, Work in ProcessPackaging $250,000, and Finished Goods $289,000. The beginning inventory for Packaging consisted of 10,000 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 50,000 units were started into production in the Mixing Department and the following transactions were completed.

1. Purchased $300,000 of raw materials on account.

2. Issued raw materials for production: Mixing $210,000 and Packaging $45,000.

3. Incurred labor costs of $258,900.

4. Used factory labor: Mixing $182,500 and Packaging $76,400.

5. Incurred $810,000 of manufacturing overhead on account.

6. Applied manufacturing overhead on the basis of $24 per machine hour. Machine hours were 28,000 in Mixing and 6,000 in Packaging.

7. Transferred 45,000 units from Mixing to Packaging at a cost of $979,000.

8. Transferred 53,000 units from Packaging to Finished Goods at a cost of $1,315,000.

9. Sold goods costing $1,604,000 for $2,500,000 on account.

Instructions: Journalize the October 2020 transactions.

Problema 21-2ARokary Corporation manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the nished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below.

Production Data for June	Cost Data for June
Beginning work in process units	--0--	Materials	$ 198,000
Units started into production	22,000	Labor	53,600
Ending work in process units	2,000	Manufacturing Overhead	112,800
Percent complete-ending inventory	40%

Instructions:

1. schedule showing physical units of production
2. Determine the equivalent units of production for materials and conversion costs
3. Compute the unit costs of production

(d) Determine the costs to be assigned to the units transferred out and in work in process for June

(e)production cost report for the Molding Department for the month of June

E21-1 Alonzo Corporation has two types of handbags: standard and custom. The controller has decided to use a plant wide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations.

	Standard	Custom
Direct labor costs	$50,000	$100,000
Machine hours	1,000	1,000
Setup hours	100	400

Total estimated overhead costs are $270,000. Overhead cost allocated to the machining activity cost pool is $170,000, and $100,000 is allocated to the machine setup activity cost pool.

Instructions:

1. Compute the overhead rate using the traditional (plantwide)

approach

1. Compute the overhead rates using the activity-based costing

approach

1. Determine the difference in allocation between the two

approaches

E21-4 Lucas Corporation manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Lorenzo, has developed the following information.

	Car	Truck
Estimated wheels produced	40,000	10,000
Direct labor hours per wheel	1	3

Total estimated overhead costs for the two product lines are $770,000.

Instructions:

1. Compute the overhead cost assigned to the car wheels and truck

wheels, assuming that direct labor hours are used to allocate

overhead costs.

1. Lorenzo is not satisfied with the traditional method of allocating

overhead because he believes that most of the overhead costs

relate to the truck wheel product line because of its complexity.

He therefore develops the following three activity cost pools and

related cost drivers to better understand these costs.

Activity Cost Pools	Expected Use of Cost Drivers	Estimated Overhead Costs
Setting up machines	1,000 setups	$220,000
Assembling	70,000 labor hours	280,000
Inspection	1,200 inspections	270,000

Compute the activity-based overhead rates for these three costs

pools.

1. Compute the cost that is assigned to the car wheels and

truck wheels product lines using an activity-based costing

system, given the following information.

Expected Use of Cost Drivers per Product
	Car	Truck
Number of setups	200	800
Direct labor hours	40,000	30,000
Number of inspections	100	1,100

Problema 21-7A Roprin, Inc. manufactures steel cylinders and nozzles for two models of re extinguishers: (1) a home re extinguisher and (2) a commercial re extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi-purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hrs. 3 (54,000 1 10,200)]. Expected annual manufacturing overhead is $1,557,480. Thus, the predetermined overhead rate is $16.17 or ($1,557,480 4 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models.

The company's managers identied six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows.

Expected Use of Drivers by Product
Activity Cost Pools	Cost Drivers	Estimated Overhead	Expected Use of Cost Drivers	Home	Commercial
Receiving	Pounds	$ 70,350	335,000	215,000	120,000
Forming	Machine hours	150,500	35,000	27,000	8,000
Assembling	Number of parts	412,300	217,000	165,000	52,000
Testing	Number of tests	51,000	25,500	15,500	10,000
Painting	Gallons	52,580	5,258	3,680	1,578
Packing and shipping	Pounds	820,750	335,000	215,000	120,000
		$1,557,480

Instructions

1. Under traditional product costing, compute the total unit cost of

each product. a simple comparative schedule of the

individual costs by product.

1. Under ABC, schedule showing the computations of the

activity-based overhead rates (per cost driver).

1. a schedule assigning each activity's overhead cost pool

to each product based on the use of cost drivers. (Include a

computation of overhead cost per unit, rounding to the nearest

cent.)

1. Compute the total cost per unit for each product under ABC.