Question 2 The ledger of Custer Company has the following work in process account.
Work in Process—Painting
5/1 Balance 4,070 5/31 Transferred out ?
5/31 Materials 6,330
5/31 Labor 3,850
5/31 Overhead 1,720
5/31 Balance ?
Production records show that there were 470 units in the beginning inventory, 30% complete, 1,430 units started, and 1,510 units transferred out. The beginning work in process had materials cost of $2,350 and conversion costs of $1,720. 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?
(b) What is the unit materials cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.)
(c) What is the unit conversion cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.)
d) What is the total cost of units transferred out in May?
(e) What is the cost of the May 31 inventory?
Wilkins Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company’s operations.
Direct labor costs $49,300 $115,000
Machine hours 1,410 1,260
Setup hours 99 400
Total estimated overhead costs are $306,500. Overhead cost allocated to the machining activity cost pool is $195,000, and $111,500 is allocated to the machine setup activity cost pool.
(a) Compute the overhead rate using the traditional (plantwide) approach. (Round answers to 2 decimal places, e.g. 12.25%.)
(b) Compute the overhead rates using the activity-based costing approach.
(c) Determine the difference in allocation between the two approaches.
101papers.com is always working towards customer satisfaction. Our professional academic writers always aim at producing comprehensive papers that possess quality and originality at pocket-friendly prices. Students are assured that all their private information is safe with us.
101papers.com provides a system where students can request for money-back in case they cancel the order or in the rare instances of dissatisfaction. The refund policy adheres to the company’s term and conditions on money-back.Read more
While providing the best professional essay writing services, we guarantee all our students of plagiarism-free papers. All papers produced by our professional academic writers are checked against all web resources and previously completed papers to avoid plagiarism.Read more
In our urge to provide the best professional essay writing services, we guarantee students of free revision policy. The free revision policy is a courtesy service where students can request for unlimited for their completed papers. We always aim at achieving 100% customer satisfaction rates. The free revision policy is one among many of our major advantages.Read more
At 101papers.com, every student is entitled to total security. Our professional academic writers are always committed to protecting all private information of our customers. We do not share any personal information with third parties. Additionally, we provide safe systems for all online transactions.Read more
Working with us is the greatest step towards achieving all your academic goals. We always deliver the best professional essay writing services as promised. We, therefore, expect all students to work cooperatively with us, as we work towards achieving our goal, your satisfaction. This way, all services will be delivered accurately and on time.Read more