Question :
134. The inventory at April 1, 2007, and the costs charged : 1233783
134. The inventory at April 1, 2007, and the costs charged to Work in Process–Department B during April for Barley Company are as follows:
500 units, 60% completed$ 3,460
From Department A, 10,000 units36,300
Direct labor7,960
Factory overhead12,500
During April, all direct materials are transferred from Department A, the units in process at April 1 were completed, and of the 10,000 units entering the department, all were completed except 1,200 units which were 25% completed as to conversion costs. Inventories are costed by the first-in, first-out method.Prepare a cost of production report for April.
135. Information for the Grantlee Manufacturing Company for the month of July 2006 is as follows:
Beginning work in process:Cost of Inventory at process, July 1$5,010
Units – 800
Direct materials = 100% complete
Conversion costs = 70% complete
Units started in July = 14,000Costs charged to Work in Process during July:
Ending work in process inventory:Direct materials costs = $57,400
Units = 1500Direct labor costs = 20,049
Direct materials = 100% completeFactory overhead costs = 30,073
Conversion costs = 30% complete
Prepare a cost of production report for the month of July.
136. Prine Co. manufactures bentwood chairs and tables. Wood for both products is steam-bent in the same process, but different types of wood are used for each product. Thus, materials cost is identified separately to each product. One production cycle uses 20 board feet. Labor cost is identified to the process as a whole, as is overhead cost. Data for the month of July follow:
Chairs Tables
Direct material cost per board foot$ 3.60$ 4.20
Number of parts formed per production cycle (20 board feet)108
Actual operating hours in July120380
Parts produced during July4,0009,000
Budgeted annual conversion cost:
Labor $150,000
Utilities 125,000
Depreciation 65,000
Other overhead 50,000
Total $390,000
Budgeted annual operating hours for steam-bending 5,200
(a)Compute July’s predetermined rate for the steam-bending process.
(b)Compute July’s direct material costs for chairs and tables.
(c)Compute conversion costs to be applied to chairs and tables in July.
(d)Journalize the following entries:
(1)Assignment of direct materials to chairs and tables.
(2)Application of conversion costs to chairs and tables.
(3)The transfer of completed chairs and tables to the Finishing Department. All of July’s production was completed in July.
137. Skewed Hardware purchases raw materials and processes those purchases through a receiving/inspection process prior to stocking for production. Skewed places 3 purchase orders for materials for production and receives the goods that day. The first PO is for 2,500 1/2”´ 96” milling blanks at $2.75 each. The second is for 4,000 pieces of 48” ´ 96” ´ 1” sheet steel at $15.55 each. The third PO is for five 55 gallon drums of Milling Lubrication Oil at $475.00 per barrel.The receiving/inspection process is completed and the goods are transferred from Receiving Inventory to Raw Materials. The Receiving/Inspection Department assigns manufacturing overhead of $55.00 per purchase order as well as $2.75 per piece on metal goods and $35.00 per container on fluids. All labor is allocated through overhead.(a) Write the journal entry to purchase and receive these items to Receiving Inventory on account.(b) Assign overhead to the metal goods.(c) Assign overhead to the fluid goods.(d) Transfer all goods to Raw Materials Inventory.
138. The Glass Works is in the process of determining manufacturing overhead. Each event below needs to be journalized to Manufacturing Overhead, Miscellaneous Expense, or allocated between the two as appropriate. All items were paid in cash at the time of acquisition.
(a)
Glass Works purchases an insurance policy for $1,000.00. It is computed that 70% of the value of the policy protects production the balance protects the administrative offices.
(b)
The electric bill is received showing an amount due of $1,200.00. This meter is utilized only by production as the office spaces have their own meter.
(c)
Payroll reports that the sales manager’s salary for the period is $2,500.00 and that production supervisors wages for the period are $4,500.00.
(d)
The stockroom reports that $975.00 in materials were purchased for the production maintenance department.
(e)
If the driver for the application of overhead is drop-forge strokes and there are expected to be 1,000 strokes in this period, what is the rate per stroke?
(f)
Assuming that there are 975 drop-forge strokes in this period, apply manufacturing overhead to Work In Process.
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