David Skaros has recently been promoted to production manager. He has just started to receive various material reports, including the production cost report that you prepared. It showed that this department had 2,000 equivalent units in ending inventory. His department has had a history of not keeping enough inventory on hand to meet demand. He has come to you, very angry, and wants to know why you credited him with only 2,000 units when he knows he had at least twice that many on hand.
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The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation.
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The Blending Department of Luongo Company has the following cost and production data for the month of April.
| Costs: | |
| Work in process, April 1: | |
Direct materials: 100% complete Conversion costs: 20% complete |
$100,000 70,000 |
Cost of work in process. April 1 | $100,000 |
| Costs incurred during production in April | |
Direct materials Conversion costs |
$800,000 365,000 |
Costs incurred in April | $1,165,000 |
Units transferred out totaled 17,000. Ending work in process was 1,000 units that are 100% complete as to materials and 405 complete as to conversion costs.
Baden Company has gathered the following information.
Instruction
- Compute equivalent units of production for materials and for conversion costs.
- Determine the unit costs of production.
- Show the assignment of costs to units transferred out and in process
Overton Company has gathered the following information.
Instructions
- Compute equivalent units of production for materials and for conversion costs.
- Determine the unit costs of production.
- Show the assignment of costs to units transferred out and in process
The polishing Department of Major company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process.
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Santana Mortgage Company uses a process cost system to accumulate cost in its Application Department. When an application is completed, it is forwarded to the Loan Department for final processing. The following processing and cost data pertain to September.
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Kowalski Company manufactures a number of specialized machine parts. Part Compo-24 uses $35 of direct materials and $15 of direct labor per unit. Kowalskis's estimated manufacturing overhead is as follows.
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Major Instrument, Inc, manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $94,500 were estimated. An analysis of estimated overhead costs reveals the following activities.
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The Cutting Department of Cassel company has the following production and cost data for July.
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