The following refers to units processed by a breakfast cerea…

The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method. Conversion Units Percent Complete Beginning work in process inventory 231,000 60% Units started this period 531,000 Units completed and transferred out 583,700 Ending work in process inventory 178,300 60%

Tarnish Industries produces miniature models of farm equipme…

Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to complete the miniatures. Next year’s expected activities are shown in the following table: Molding Finishing Direct labor hours 82,000 DLH 167,500 DLH Machine hours 105,000 MH 88,500 MH Tarnish Industries uses departmental overhead rates and is planning on a $4 per direct labor hour overhead rate for the Molding department. Compute the budgeted manufacturing overhead cost for the Molding department given the information shown in the table.

A company computed the following activity rates using activi…

A company computed the following activity rates using activity-based costing. Activity Activity Rate Setup $ 2,000 per setup Materials handling $ 100 per materials requisition Inspection $ 4 per unit inspected The company’s deluxe model used the following activities to produce 2,000 units. Compute the overhead cost per unit for the deluxe model using activity-based costing. Activity Activity Rate Setup 6 setups Materials handling 50 materials requisitions Inspection 2,000 units inspected

Kayak Company uses a job order costing system and allocates…

Kayak Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Kayak Company’s production costs for the year were: direct labor, $31,000; direct materials, $51,000; and factory overhead applied $6,100. The predetermined overhead rate was:

Following is a partial production cost report for Mitchell M…

Following is a partial production cost report for Mitchell Manufacturing’s Canning Department. Equivalent units of production (EUP) Direct Materials Conversion Units Percent Complete EUP Percent Complete EUP Completed and transferred out 40,000 100% 40,000 100% 40,000 Ending Work in Process 18,000 100% 18,000 60% 10,800 58,000 50,800 Cost per EUP Direct Materials Conversation Cost of beginning work in process $ 42,300 $ 62,200 Costs added this period 141,700 190,600 Total costs $ 184,000 $ 252,800 % EUP from part (a) 58,000 50,800 Cost per EUP $ 3.17 per EUP $ 4.98 per EUP The total direct materials costs transferred out of the Canning department equals: