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need help plz asap for accounting Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct
need help plz asap for accounting
Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000,$125,000, and $150,000, respectively, The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000,$60,000, and $70,000, respectively. Department 2 has transferred-in costs of $390,000 for the current period. In addition, work in process at the beginning of the period for Department 2 totaled $75,000, and work in process at the end of the period totaled $90,000. The journal entry to record the flow of costs into Department 3 during the period is Single Plantwide and Multiple Production Department Factory Overhead Rate Methods: and Product Cost Distortion The management of Nova Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication and Assembly. Management needs accurate product cost information in order to guide product strategy. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering the multiple production department factory overhead rate method. The following factory overhead was budgeted for Nova: Direct labor hours were estimated as follows: In addition, the direct labor hours (dih) used to produce a unit of each product in each department were determined from engineering records, as follows: a. Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the single plantwide factory overhead rate method, using direct labor hours as the activity base. b. Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the multiple production department factory overhead rate method, using direct labor hours as the activity base for each department. c. Recommend to management a product costing approach, based on your analyses in (a) and (b). Management should select the overhead costs. The products have the same factory overhead per unit. Each product uses the direct labor hours Thus, the accounting for the overhead factory overhead rate method of allocating factory overhead rate method indicates that both rate method avoids the cost distortions by Equivalent Units of Production and Related Costs The charges to Work in Process-Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production. Determine the following: a. The number of units in work in process inventory at the end of the period. units b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in " 0 ". Work in Process-Assembly Department Equivalent Units of Production for Direct Materials and Conversion Costs c. Costs per equivalent unit for direct materials and conversion. If required, round your answers to the nearest cent. d. Cost of the units started and completed during the period Step by Step Solution
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