accounting week 4 answers

Topics: Conversion of units, Units of measurement, Costs Pages: 4 (469 words) Published: December 1, 2014
1. Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $276,100 for the year, and machine usage is estimated at 125,500 hours. For the year, $291,988 of overhead costs are incurred and 130,200 hours are used. Compute the manufacturing overhead rate for the year. (Round answers to 2 decimal places, e.g. 1.25.) Manufacturing overhead rate $ 2.20 per machine hour

Answer:
Manufacturing Overhead Rate = Estimated Overhead ÷ Estimated Machine Hours = $276100 ÷ 125500 hours = $2.20 Per Machine Hour

b. What is the amount of under- or over applied overhead at December 31? Amount $________
Is the amount over applied or under applied? _________

2. The ledger of Custer Company has the following work in process account. Work in Process-Painting
5/31 Balance 4,600
5/31 Transferred out?
5/31 Materials 5,840

5/31 Labor 4,770

5/31 Overhead 1,830

5/31 Balance ?

Production records show that there were 540 units in the beginning inventory, 30% complete, 1,580 units started, and 1,600 units transferred out. The beginning work in process had materials cost of $2,930 and conversion costs of $1,670. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. (a) How many units are in process at May 31?

Work in process, May 31 520 units
Answer:
 
Units
Work in process, May 1
540
Started into production
1580
Total units to be accounted for
2120
Less: Transferred out
1600
Work in process, May 31
520

(b) What is the unit materials cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.) The unit materials cost for May $4.14

(c) What is the unit conversion cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.) The unit conversion cost for May $4.57

(d) What is the total cost of...
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