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3 years ago

Polk Company manufactures basketballs.

Business

1 answer:

earnstyle [38]3 years ago

8 0

Answer:

1. Material $1,490

Conversion $1,490

2. Material $1,490

Conversion $1,166

3.Cost of units transferred out $4,842

Cost of ending Work in process $1,838

4. $6,680

Explanation:

1.Computation of the Equivalent unit of production for material

Beginning Work In Process 400

Add Started during the year 1,090

Units to be accounted 1,490

Computation of the Equivalent unit of production for Conversion cost

Completed and transferred 950

(1,090+400 -540)

Add ending work in process 540

Units to be accounted for 1,490

2)Calculation for the unit costs of production for materials

Production units Materials

Completed& transferred 950 100% =950

Add Ending work in process 540 100%=540

Total 1,490 1,490

Calculation for the unit costs of production for conversion costs

Completed& transferred 950 100%=950

Add Ending work in process 540 40% =216

Total 1,490 1,166

3)Calculation for the assignment of costs to units transferred out and in process

Equivalent cost per unit Materials Conversion Cost Total

Beginning work in process

760 590 =1,350

Cost added during the year

2,630 2,700 =5,330

(1,590+1,110=2,700)

Total cost

3,390 3,290 6,680

÷Equivalent units of production 1,490 1,166

=Equivalent cost per unit

2.275 2.822

Cost of units transferred out=

950× (2.275+2.822)

Cost of units transferred out=950×5.097

Cost of units transferred out= 4,842

Cost of ending Work in process

Direct materials 540×2.275 =1,228

Conversion cost 216×2.822= 610

Total (1,228+610)= 1,838

4)Preparation of a production cost report for the month of July for the basketballs.

Production Cost Report

Direct Materials 1,350

Add cost added during the year 5,330

Cost to be accounted for 6,680

Cost to be accounted for

Cost transferred out 4,842

950× (2.275+2.822)

Add cost of ending WIP 1,838

Total 6,680

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pdf Suppose that the pound is pegged to gold at £20 per ounce and the dollar is pegged to gold at $35 per ounce. This implies an

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Answer:

1) Buy 10 ounces of gold with the 350 dollars

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Explanation:

Due to the difference between the exchange rate in gold and currency, a 2.1% (1.80 / 1.75) advantage can be obtained.

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Finding Unknown Values in the Cost of Goods Manufactured Report [LO 2-3, 2-6]Mulligan Manufacturing Company uses a job order cos

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Answer:

For Case 1:

Manufacturing overhead applied = 27,000

Total current manufacturing costs = 60,000

Cost of goods manufactured = 64,000

Cost of goods sold = 61,100

For Case 2:

Direct labor = 7,667

Direct material used = 8,333

Beginning work in process inventory = 26,400

Ending finished goods inventory = 15,000

For Case 3:

Direct labor = 5,760

Manufacturing overhead applied = 8,640

Ending work in process inventory = 10,499

Beginning finished goods inventory = 16,199

Explanation:

Note: The data in the question are merged together. The data are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.

Also note: See the attached excel file for the table with the computed figure in bold red color.

In the attached excel file, the following calculations are employed:

For Case 1:

Since overhead applied to products at a rate of 150 percent of direct labor cost, we have:

Manufacturing overhead applied = Direct labor * 150% = 18,000 * 150% = 27,000

Total current manufacturing costs = Direct material used + Direct labor + Manufacturing overhead applied = 15,000 + 18,000 + 27,000 = 60,000

Cost of goods manufactured = Total current manufacturing costs + Beginning work in process inventory - Ending work in process inventory = 60,000 + 9,900 - 5,900 = 64,000

Cost of goods sold = Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = 64,000 + 4,700 - 7,600 = 61,100

For Case 2:

Since overhead applied to products at a rate of 150 percent of direct labor cost, we have:

Direct labor = (Manufacturing overhead applied / 150%) * 100% = (11,500 / 150%) * 100% = 7,667

Direct material used = Total current manufacturing costs - Manufacturing overhead applied - Direct labor = 27,500 - 11,500 - 7,667 = 8,333

Beginning work in process inventory = Cost of goods manufactured + Ending work in process inventory - Total current manufacturing costs = 44,000 + 9,900 - 27,500 = 26,400

Ending finished goods inventory = Cost of goods manufactured + Beginning finished goods inventory - Cost of goods sold = 44,000 + 12,000 – 41,000 = 15,000

For Case 3:

Since overhead applied to products at a rate of 150 percent of direct labor cost, we can let:

Direct labor = x

Therefore, we have:

Manufacturing overhead applied = x * 150%

Since,

Total current manufacturing costs = Direct material used + Direct labor + Manufacturing overhead applied ……………………….. (1)

Where;

Total current manufacturing costs = 28,500

Direct material used = 14,100

We can therefore substitute the relevant values into equation (1) and solve for x as follows:

28,500 = 14,100 + x + 1.5x

28,500 - 14,100 = 2.5x

14,400 = 2.5x

x = 14,400 / 2.5

x = 5,760

Therefore;

Direct labor = x = 5,760

and

Manufacturing overhead applied = x * 150% = 5,760 * 150% = 8,640

Ending work in process inventory = Total current manufacturing costs + Beginning work in process inventory - Cost of goods manufactured = 28,500 + 8,000 - 26,001 = 10,499

Beginning finished goods inventory = Cost of goods sold + Ending finished goods inventory - Cost of goods manufactured = 36,000 + 6,200 - 26,001 = 16,199

Download xlsx

xlsx

pdf

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