Lowery Corporation, which uses an operation-costing system, has three processing departments. All units pass through Department no. 1; upon completion, 60% of the goods are sent to Department no. 2 and 40% are sent to Department no. 3. Additional data follow . Fifty one thousand units were manufactured during the year. . Conversion cost in each department was: No. 1, $391,000; no. 2, $201,500; and no. 3, $161,000. • Batch no. 67, which consisted of 720 units, was sent to Department no. 3 for its additional processing. Direct materials of $24,600 and $14,100 were introduced to this batch in Department nos. 1 and 3, respectively. Lowery assigns conversion cost to goods manufactured on the basis of units produced. Required: A. Determine the conversion cost per unit in Department no. 1. Department no. 2, and Department no. 3. (Round your answers to 2 decimal places.) B. Compute the total cost of batch no. 67. (Round your intermediate calculations to 2 decimal places and final answer to nearest whole dollar.) A Department no. 1 Department no. 2 Department no. 3 B. Total cost of batch no. 67 per unit per unit per unit 4

Lowery Corporation, which uses an operation-costing system, has three processing departments. All units pass through Department no. 1; upon completion, 60% of the goods are sent to Department no. 2 and 40% are sent to Department no. 3. Additional data follow . Fifty one thousand units were manufactured during the year. . Conversion cost in each department was: No. 1, $391,000; no. 2, $201,500; and no. 3, $161,000. • Batch no. 67, which consisted of 720 units, was sent to Department no. 3 for its additional processing. Direct materials of $24,600 and $14,100 were introduced to this batch in Department nos. 1 and 3, respectively. Lowery assigns conversion cost to goods manufactured on the basis of units produced. Required: A. Determine the conversion cost per unit in Department no. 1. Department no. 2, and Department no. 3. (Round your answers to 2 decimal places.) B. Compute the total cost of batch no. 67. (Round your intermediate calculations to 2 decimal places and final answer to nearest whole dollar.) A Department no. 1 Department no. 2 Department no. 3 B. Total cost of batch no. 67 per unit per unit per unit 4

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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 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...

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Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid 28,000 per year and is able to process 4,000 purchase orders. Last year, 17,800 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. 2. Calculate, in terms of purchase orders, the: a. total activity availability b. unused capacity 3. Calculate the dollar cost of: a. total activity availability b. unused capacity 4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for 14,000? How many purchase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
Mazomanie Farm completed 20,000 units during the quarter and has 2,500 units still in process. The units are 100% complete with regard to materials and 55% complete with regard to conversion costs. What are the equivalent units for materials and conversion?
A production department within a company received materials of $10,000 and conversion costs of $10,000 from the prior department. It added material of $27,200 and conversion costs of $53,000. The equivalent units are 20,000 for material and 18,000 for conversion. What is the unit cost for materials and conversion?
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. 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, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
Narwhal Swimwear has a beginning work in process inventory of 13,500 units and transferred in 130,000 units before ending the month with 14,000 units that were 100% complete with regard to materials and 30% complete with regard to conversion costs. The cost per unit of material is $5.80 and the cost per unit for conversion is $8.20 per unit. Using the weighted-average method, what is the amount of material and conversion costs assigned to the department for the month?
Radford Inc. manufactures a sugar product by a continuous process, involving three production departmentsRefining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were 1,250,000, 660,000, and 975,000, respectively. Also, work in process in the Refining Department at the beginning of the period totaled 328,000, and work in process at the end of the period totaled 295,000. Journalize the entries to record (a) the flow of costs into the Refining Department during the period for (1) direct materials, (2) direct labor, and (3) factory overhead, and (b) the transfer of production costs to the second department, Sifting.
Prepare the journal entry to record the transfer of 3,000 units from the packaging department to finished goods if the material cost per unit is $4 and the conversion cost per unit is $5.50.
Vexar manufactures nails. Manufacturing is a one-step process where the nails are forged. This is the information related to this years production: Â Ending inventory was 100% complete as to materials and 70% complete as to conversion, and the total materials cost is $115,080 and the total conversion cost is $72,072. Using the weighted-average method, what are the unit costs if the company transferred out 34,000 units? Using the weighted-average method, prepare the companys process cost summary for the month.
Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
Chavez Concrete Inc. has two production departments. Blending had 1,000 units in process at the beginning of the period, two-fifths complete. During the period 7,800 units were received from Mixing, 8,200 units were transferred to the finished goods storeroom, and 600 units were in process at the end of the period, 1/3 complete. The cost of the beginning work in process was: The costs during the month were: 1. Using the data in E5-15, prepare a cost of production summary for the month ended January 31, 2016. 2. Prepare a journal entry to transfer the cost of the completed units from Blending to the finished goods storeroom.
Arsene Ltd manufactures its product in two sequential departments.- On 1 April, Department 2 had 3,000 units, which were 50% complete as to conversion cost.- During April, 15,000 units were completed and transferred from Department 1.- On April 30, Department 2 had 4,000 units, which were 20% complete as to conversion costs.How many units were completed and transferred from Department 2 during the month of April?(Answer without point or comma separators, e.q., 1000 instead of 1,000)