Answers to revision
Q1.
Actual MOH= $520,000
∴
Overapplied MOH =$20,750
Q2.
1.
|
DM |
Conversion |
|
|
Beginning WIP* |
7,000 |
7,000 |
|
Started and finished* |
18,000 |
18,000 |
|
Ending WIP |
5,000 |
3,000 |
|
EU |
30,000 |
28,000 |
*similar to units transferred to next dept = 25,000
2. cost per EU
|
Total Cost |
Materials |
Conversion |
|
|
Cost to be accounted for: |
|||
|
WIP , beg. |
$10,400 |
$6,600 |
|
|
Cost added during March |
$34,600 |
$106,400 |
|
|
Total cost |
|||
|
EU |
30,000 |
28,000 |
|
|
Unit cost |
= 5,000x 1.5 + 3,000 x 4.04
= $19,607
Q3.
Inspection: $75,000/1,000 =$75/inspec
Others: $200,000/20,000=$10/Mhr
|
Mach Setup |
(4x $2,000=) |
$8,000 |
|
Inspec |
(10 x $75 =) |
750 |
|
Others |
(500 x $10=) |
5,000 |
|
Total |
$13,750 |
Q4.
a. $850,500+230,600-65,200-960,00= 55,900 net assets sold
$55,900+$5,500 gain = $61,400 cash proceeds
b. $712,200+128,000-49,300-706,800=$84,100 net assets sold
$84,100-72500 cash received =11,600 loss
c. $ 184,900 +16,800=201,700 net assets sold
$488,300 +55,600-201,700-284,400= $57,80 depreciation expense
Q5.
a. the expected total direct labor hrs during the period are as follows:
|
product C: 2600units x 0.5 hrs |
1300 hrs |
|
product D: 1200 units x 0.6 hrs |
720 hrs |
|
Total DLHs |
2020 hrs |
using these hrs as a base, the predetermined OH rate =$99590/2020=$49.3 /DLH
Using this OH rate, the unit product costs are;
|
product C |
product D |
|
|
DM |
$17.7 |
27.9 |
|
DL |
8 |
9.6 |
|
Manufacturing OH |
24.65 |
29.58 |
|
Total unit product cost |
$50.35 |
67.08 |
b. The OH rates for each activity center are as follows:
|
Activity center |
estimated OH costs |
expected Activity |
OH rate |
|
machine setups |
$8370 |
270 |
$31.00 |
|
Purchase orders |
$81120 |
`1690 |
48 |
|
general factory |
10,100 |
2020 |
5.00 |
the OH cost charged to each product is:
|
product C |
product D |
|||
|
Activity |
Amount |
Activity |
Amount |
|
|
machine setups |
120 |
$3720 |
150 |
4650 |
|
Purchase Orders |
630 |
30240 |
1060 |
50880 |
|
General factory |
1300 |
6500 |
720 |
3600 |
|
Total OH cost |
40460 |
59130 |
||
Overhead cost per unit:
product C: $40460/2600 units=$15.56 per unit
product D : $59,130/1200 units =$49.28 /unit
usinig the ABC costing, the unit product cost of each product
would be:
|
product C |
product D |
|
|
DM |
$17.7 |
27.9 |
|
DL |
8 |
9.6 |
|
Manufacturing OH |
15.56 |
49.28 |
|
Total unit product cost |
41.26 |
86.28 |
Reminder: Like your HW, pls revise how to explain the difference between the two unit costs. ( using the single OH rate to assign Oh costs is not enough……..)
revise your Hw of ch5