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In a Soda Company, the product moves through two departments before the final product comes out. In the first department the bottle is made and
In a Soda Company, the product moves through two departments before the final product comes out. In the first department the bottle is made and in the second department soda is filled in the bottle and capped after which the complete bottle of soda comes out and is ready for sale. 1. In Department 1 to make 3 bottles, 100 dollars of direct material is used, 100 dollars of direct labor is used and 100 dollars of manufacturing overhead is applied. What is the total cost of 3 bottles? 2. Based on your answer above what is the cost per bottle in Department 1? a)100 dollars b)200 dollars a) 100 dollars c)300 dolla: b) 200 dollars d)125 dollars c) 300 dollars d)125 dollars 3. The bottles made in Department 1 moves to Department 2 where the bottles are filled with soda and capped. Therefore, the input material (i.e. direct material) for Department 2 is the bottle, soda and cap. If two bottles move out of Department 1 and moves into Department 2 what is cost of two bottles that is added as an input material in Department 2? 4. Two fill the two bottles you require 200 dollars of soda and 100 dollars caps. As stated above the direct material for Department 2 is the bottle, soda and cap. Based on this information and your answer above what is the total direct material cost of the two completely filled and capped soda bottles in Department 2? a)200 dollars a) 100 dollars b)300 dollars b) 200 dollars c)400 dollars c)300 dollars d)500 dollars d)125 dollars a)200 dollars b)300 dollars 5. If you add 100 dollars of labor and 100 dollars of manufacturing overhead in Department 2 to complete these two soda bottles what is the conversion cost of Department 2? (Conversion cost is the total cost of direct labor and manufacturing overhead) a)100 dollars c)500 dollars d)700 dollars 7. Based on your answer above what is the cost of completing 1 bottles of soda in Department 2? (Cost per unit = Total costumber of units made) b)200 dollars c)300 dollars a)200 dollars d)400 dollars d)250 dollars c)350 dollars 6. Based on your answers above what is the total cost of completing the two bottles of soda in Department 2? (total cost = DM + DL + MOH) d)500 dollars e)700 dollars
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