Question
PROBLEM SOLVING: Bench Manufacturing Company uses a job order cost accounting system. On April 1, the company has Work in Process Inventory of $15,000 representing
PROBLEM SOLVING:
Bench Manufacturing Company uses a job order cost accounting system. On April 1, the company has Work in Process Inventory of $15,000 representing Job No. 323 (materials $8,000, direct labor $5,000, and applied overhead based on 40% direct labor cost ). During April, a summary of source documents reveals the following:
Purchase Order Material A $10,000
Material B 10,000
Materials Requisitions Labor Time Tickets
Job No. 323 # 5 Mat A $ 2,500 JO 323 $ 3,000
324 # 6 Mat B 3,000 324 4,000
325 # 7 Mat A 3,500 325 3,000
326 # 8 Mat B 2,500 326 1,500
General use: Indirect Materials $900 Indirect Labor $1,600
Job No. 323 and 324 are completed but only Job 324 was delivered.
From the above information, prepare cost sheets and answer the following:
- the total cost of goods manufactured amount to _______.
- The cost of goods sold amount to ______.
- If material A has a beginning balance of $3,000, the total cost of raw materials inventory end for Mat A is ______.
- Material B has no beginning blance, the raw materials invty end for Mat B is __________.
At the end of the month, Cutting has still 200 rag dolls in process as it is only 50% complete while 800 were transferred to the next dept. Sewing Department has still 100 in process at the end of the month which is 60% done.
From the above information, complete the cost flow and answer the following:
In the cutting department, compute for
- The equivalent units _________.
- The cost per unit _________.
- Cost transferred to the Sewing Department ___________.
- Work in process end in the Cuttng Department ___________. In the sewing department, compute for :
- The equivalent units in the Sewing Deparment is _________.
- The unit cost added in this department is __________.
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