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

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
Work in process, May 1
Started into production
Total units to be accounted for
Less: Transferred out
Work in process, May 31

(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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