accounting week 4 answers
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 units transferred out in May? (Round answer to
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 units transferred out in May? (Round answer to