Question
Process Costing - Packaging Department Direct materials are added 90% at the beginning of the process and the remaining 10% are added when the cookies
Process Costing - Packaging Department
Direct materials are added 90% at the beginning of the process and the remaining 10% are added when the cookies are 80% complete with the packaging process.Direct labor and overhead are added evenly throughout the process.
Table 8 - Unit and cost information
Cost | |||||
Physical Units | Transferred-in | Direct Materials | Direct Labor | Overhead | |
Beg WIP | 12,000 (40% complete) | $104,000 | $10,350 | $1,669.30 | $78.20 |
Transferred In | 160,000 | $1,327,040 | |||
End WIP | 10,000 (30% complete) |
Added during Qtr 2:
Direct Materials -- $126,450
Direct Labor - 3,150 hrs @ $18.50 per hour
Overhead - OH is applied based on predetermined OH rate and actual DL hours
- Determine the number of units completed during quarter 2.
- Compute the equivalent units using the weighted average method.
- Compute the cost per equivalent unit using the weighted average method
- Compute the cost of goods transferred to finished goods inventory
- Compute the ending balance in WIP, Packaging
Predetermined OH rate= $0.85 per DL hour
Actual DL hours= 221,800 hours
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