Question

Direct labor on the February cost of production report (weighted-average method) revealed a cost per equivalent unit of $0.30. The factory overhead application rate was consistent with that evident in the beginning work in process. Finished goods inventory increased by $9,400, and sales were $600,000. (a) How many units were transferred to finished goods? (b) What are February's equivalent units of production for direct materials, direct labor, and factory overhead? (c) How much was the cost of direct material introduced into production during February? (d) How much was the cost of direct labor introduced into production in February? (e) What is the factory overhead application rate? (f ) Of the total cost (beginning inventory plus additional production cost), how much is allocated to ending work in process? (g) Of the total cost (beginning inventory plus additional production cost), how much is transferred to finished goods inventory? (h) How much is February's gross profit?

Answer 1

Answer:

Kindly find the complete questions attached.

a) 325,000 units were transferred to finished goods

direct materials 171,053

direct labor 85,526

factor overhead 68,421

(b) February's equivalent units of production was 445,000 units :

direct materials 234,211

direct labor 117,105

factor overhead 93,684

(c) the cost of direct material introduced into production during February was $234,211

(d) The cost of direct labor introduced into production in February was $35,132

(e) The factory overhead application rate was 80% of Direct Labor

(f ) Of the total cost (beginning inventory plus additional production cost), allocation to

ending work in process is 120,000 units costing $80,211

(g) Of the total cost (beginning inventory plus additional production cost), transfer to finished goods inventory is $217,237

(h) February's gross profit is $373,363

Please review the attached for detailed workings and presentation of the answers