29. LO.3 (FIFO EUP; cost per FIFO EUP) Use the information in Exercise 27 exceptassume that BeGone uses FIFO process costing. Prepare a schedule showing theBe Gone August 2010 computation of FIFO equivalent units of production and costper equivalent unit. 27. LO.2 (WA EUP; cost per WA EUP) BeGone manufactures spray cans of insect repel-lent. On August 1, 2010, the company had 9,800 units in the beginning WIP Inventorythat were 100 percent complete as to canisters, 60 percent complete as to other mate-rials, 40 percent complete as to direct labor, and 20 percent complete as to overhead.During August, BeGone started 81,500 units in the manufacturing process. EndingWIP Inventory included 4,600 units that were 100 percent complete as to canisters,40 percent complete as to other materials, 20 percent complete as to direct labor, and10 percent complete as to overhead.Cost information for the month is as follows:Beginning WIP InventoryCanistersOther direct materialsDirect laborOverheadAugust costsCanistersOther direct materialsDirect laborOverhead$ 6,5356,1746,4311,07061,94086,79381,189160,176

The cost per equivalent unit is computed by dividing the total costs introduced during the period by…

29. LO.3 (FIFO EUP; cost per FIFO EUP) Use the information in Exercise 27 except assume that BeGone uses FIFO process costing. Prepare a schedule showing the BeGone August 2010 computation of FIFO equivalent units of production and cost per equivalent unit.

29. LO.3 (FIFO EUP; cost per FIFO EUP) Use the information in Exercise 27 except assume that BeGone uses FIFO process costing. Prepare a schedule showing the BeGone August 2010 computation of FIFO equivalent units of production and cost per equivalent unit.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

See similar textbooks

Similar questions

Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Orinder Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 275,800, direct labor cost was 153,000, and overhead cost was 267,300. There were 25,000 units produced. Unit manufacturing cost (rounded to the nearest cent) is a. 28.40 b. 27.98 c. 34.95 d. 27.55
Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 264,000 + 1.42X, where X equals number of composters. Last year, Natur-Gro produced 30,000 composters. Actual overhead costs for the year were as expected. Total overhead for per unit was a. 1.42 b. 8.80 c. 11.63 d. 10.22
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported the following: Last year, Orman produced 89,000 units and sold 90,500 units at 10.50 per unit. Required: 1. Prepare a statement of cost of goods manufactured. 2. Prepare an absorption-costing income statement.
(Production and related schedules) The Jansen Company manufactures and sells two products: plastic boxes and plastic trays. Estimated needs for a unit of each are Вохеs Trays Material A 2 pounds 4 pounds 2 hours 1 pound 4 pounds 2 hours Material B Direct labor Overhead is applied on the basis of $2 per direct labor hour. The estimated sales by product for 2000 are: Вохes Trays Sales 42,000 24,000 The beginning inventories are expected to be as follows: Material A Material B 4,000 pounds 6,000 pounds 1,000 units Вохes Trays 500 units The desired inventories are one month's production requirements, assuming constant sales throughout the year. Prepare the following information: a. Production schedule b. Purchases budget in units c. Direct labor budget in hours d. Overhead to be charged to production
Umdloti Ltd, which manufactures liquid hand soap, commenced operations on 01 November 2021. Standard production for a typical month is expected to be 160 000 bottles. During November 2021 the company manufactured 170 000 bottles of hand soap. On 30 November 2021 there were 46 000 bottles of hand soap in inventory. Manufacturing and commercial costs during November 2021 were as follows: Direct materials R212 500 Direct labour R680 000 Variable manufacturing overheads R37 400 Variable marketing costs R135 160 Fixed administration costs R84 320 Fixed manufacturing overheads R113 900 The hand soap was sold at R12 per bottle during November 2021. During December 2021, Umdloti Ltd decided to increase the selling price by 10% because the fixed manufacturing costs increased by R27 100 and the variable marketing costs increased by R0.11 per unit sold with effect from 01 December 2021. The company manufactured 150 000 bottles of hand soap during December 2021. There were 27 000 bottles…
27. LO.2 (WA EUP; cost per WA EUP) BeGone manufactures spray cans of insect repel- lent. On August 1,2010, the company had 9,800 units in the beginning WIP Inventory that were 100 percent complete as to canisters, 60 percent complete as to other mate- rials, 40 percent complete as to direct labor, and 20 percent complete as to overhead. During August, BeGone started 81,500 units in the manufacturing process. Ending WIP Inventory included 4,600 units that were 100 percent complete as to canisters, 40 percent complete as to other materials, 20 percent complete as to direct labor, and 10 percent complete as to overhead. Cost information for the month is as follows: Beginning WIP Inventory Canisters $ 6,535 Other direct materials 6,174 Direct labor 6,431 Overhead 1,070 August costs Canisters 61,940 Other direct materials 86,793 Direct labor 81,189 Overhead 160,176 Prepare a schedule showing the BeGone August 2010 computation of weighted aver- age equivalent units of production and cost per…
Umdloti Ltd, which manufactures liquid hand soap, commenced operations on 01 November 2021. Standard production for a typical month is expected to be 160 000 bottles. During November 2021 the company manufactured 170 000 bottles of hand soap. On 30 November 2021 there were 46 000 bottles of hand soap in inventory. Manufacturing and commercial costs during November 2021 were as follows: Direct materials R212 500 Direct labour R680 000 Variable manufacturing overheads R37 400 Variable marketing costs R135 160 Fixed administration costs R84 320 Fixed manufacturing overheads R113 900 The hand soap was sold at R12 per bottle during November 2021. During December 2021, Umdloti Ltd decided to increase the selling price by 10% because the fixed manufacturing costs increased by R27 100 and the variable marketing costs increased by R0.11 per unit sold with effect from 01 December 2021. The company manufactured 150 000 bottles of hand soap during December 2021. There were 27 000 bottles of hand…
Umdloti Ltd, which manufactures liquid hand soap, commenced operations on 01 November 2021. Standard production for a typical month is expected to be 160 000 bottles. During November 2021 the company manufactured 170 000 bottles of hand soap. On 30 November 2021 there were 46 000 bottles of hand soap in inventory. Manufacturing and commercial costs during November 2021 were as follows: Direct materialsDirect labourVariable manufacturing overheads Variable marketing costsFixed administration costsFixed manufacturing overheadsR212 500 R680 000 R37 400 R135 160 R84 320 R113 900 The hand soap was sold at R12 per bottle during November 2021. During December 2021, Umdloti Ltd decided to increase the selling price by 10% because the fixed manufacturing costs increased by R27 100 and the variable marketing costs increased by R0.11 per unit sold with effect from 01 December 2021. The company manufactured 150 000 bottles of hand soap during December 2021. There were 27 000 bottles of hand soap…
Midwest Industrial Products Corporation makes two products, Product H and Product L. Product H isexpected to sell 50,000 units next year and Product L is expected to sell 10,000 units. A unit of either product requires 0.2 direct labor-hours.The company’s total manufacturing overhead for the year is expected to be $1,920,000.Required:1. The company currently applies manufacturing overhead to products using direct labor-hours asthe allocation base. If this method is followed, how much overhead cost would be applied to eachproduct? Compute both the overhead cost per unit and the total amount of overhead cost that wouldbe applied to each product. (In other words, how much overhead cost is applied to a unit of ProductH? Product L? How much overhead cost is applied in total to all the units of Product H? Product L?)2. Management is considering an activity-based costing system and would like to know what impact thischange might have on product costs. For purposes of discussion, it has been…
Ceder Company has compiled the following data for the upcoming year: • Sales are expected to be 16,500 units at $50 each. • Each unit requires 4 pounds of direct materials at $3.00 per pound. • Each unit requires 1.8 hours of direct labor at $13 per hour. • • • • Manufacturing overhead is $4.00 per unit. Beginning direct materials inventory is $4,500. Ending direct materials inventory is $5,600. Selling and administrative costs totaled $137,370. Required: 1. Determine Ceder's budgeted cost of goods sold. 2. Complete Ceder's budgeted income statement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete Ceder's budgeted income statement. Note: Do not round the intermediate values. CEDER COMPANY Budgeted Income Statement Budgeted Gross Margin Budgeted Net Operating Income