Question
The Wildhorse Paint Co. uses a process costing system. You have been given the following selected information for July 2022: Units Percent Complete Beginning work
The Wildhorse Paint Co. uses a process costing system. You have been given the following selected information for July 2022:
Units | Percent Complete | |||
---|---|---|---|---|
Beginning work in process inventory | 6,660 | 70% | ||
Units started | 26,640 | |||
Ending work in process inventory | 11,100 | 60% |
The total cost of the beginning work in process inventory was $41,070, of which $7,770 was for direct labour costs. Overhead is applied on the basis of direct labour costs. During July, the company added $77,030 of direct materials, $56,060 of direct labour, and $72,878 of overhead to work in process inventory. All direct materials are added at the beginning of the process, and the conversion costs are incurred uniformly throughout the process.
Calculate the overhead rate.
Overhead rate | enter the overhead rate in percentages % |
Calculate the direct materials, the direct labour, and the overhead cost components of the beginning work in process.
Direct Materials | Direct Labour | Overhead | |
---|---|---|---|
Components of beginning work in process inventory | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount |
Calculate the number of equivalent units of production that would be used to establish the weighted-average costs for direct materials, direct labour, and overhead.
Direct Materials | Conversion | |
---|---|---|
Equivalent units of Production | enter a number of units | enter a number of units |
Calculate the number of equivalent units of production that would be used to establish the FIFO costs for direct materials, direct labour, and overhead.
Direct Materials | Conversion | |
---|---|---|
Equivalent units of production | $enter a dollar amount | $enter a dollar amount |
Assuming weighted-average is used, calculate the cost of goods completed and transferred out. (Round unit cost to 4 decimal places, e.g. 1.5259 and final answer to 0 decimal places, e.g. 125.)
Cost of goods completed and transferred out | $enter the cost of goods completed and transferred out in dollars |
Assuming FIFO is used, calculate the cost of ending work in process inventory for direct materials, direct labour, and overhead. Show each component separately. (Round unit cost to 4 decimal places, e.g. 1.5259 and final answers to 0 decimal places, e.g. 125.)
Direct Materials | Direct Labour | Overhead | |
---|---|---|---|
Cost of ending work in process inventory | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount |
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