Question

Eclypso Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the mixing department.
Information for the mixing department for the month of October is as follows:
Work in process, October 1:
No. of units (45% complete) 7,200
Direct materials $42,000
Direct labor $50,400
Overhead $14,400
During October, 38,400 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during October:
Direct materials $144,000
Direct labor $192,000
Overhead $ 60,000
By October 31, 3,600 units that were 85% complete remained in the mixing department. Eclypso uses the weighted average method. Eclypso's equivalent units of production using the weighted average method would be:_________
a. 24,740.
b. 32,000.
c. 41,460.
d. 35,000.
Alpha Technology produces two products: a high-end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers. The two products use two overhead activities, with the following costs:
Setting up equipment $3,000
Machining $15,000
The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production.
Excellent Laptops Outstanding Computers
Direct Labor $25,000 $10,000
Direct Materials $20,000 $5,000
Expected Production in Units 3,000 3,000
Machine Hours 850 2,000
Setup Hours 80 75
Calculate Outstanding Computer's consumption ratio for setup hours. (Note: Round your answer to two decimal places.)
a.0.75
b.0.90
c.0.25
d.0.45
e.0.48
35. Direct materials used in production, direct labor, and applied overhead are charged to the:
a. indirect labor account.
b. work-in-process account.
c. overhead account.
d. raw materials account.

Answer 1

Answer and Explanation:

Equivalent units of production is

=Units completed & transferred + Units in ending work in process

= 38400 units+ (85% of 3600 units

= 41460 units

Outstanding Computer's consumption ratio for setup hours is

= (75 setup hours ÷ 155 setup hours) × 100

= 0.48

35.  

The direct material that are used for production, direct labor and the applied overhead should be charged to the work in process account