The ledger of Custer Company has the following work in process account. Work in Process—Painting | | 5/1 | Balance | 4,670 | 5/31 | Transferred out | ? | | 5/31 | Materials | 5,970 | | | | | 5/31 | Labor | 4,160 | | | | | 5/31 | Overhead | 2,250 | | | | | 5/31 | Balance | ? | | | |
Production records show that there were 450 units in the beginning inventory, 30% complete, 1,410 units started, and 1,420 units transferred out. The beginning work in process had materials cost of $2,960 and conversion costs of $1,710. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. [removed] Don't show me this message again for the assignment |
Part 2 Wilkins Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company’s operations. | | | Standard | | Custom | | Direct labor costs | | $54,900 | | $112,000 | | Machine hours | | 1,360 | | 1,310 | | Setup hours | | 97 | | 410 |
Total estimated overhead costs are $302,200. Overhead cost allocated to the machining activity cost pool is $199,400, and $102,800 is allocated to the machine setup activity cost pool. [removed] Don't show me this message again for the assignment |
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cccllo
12 years ago
5
acc_561_wiley_week_4_answers_for_you.docx
