Page 120: Brief Exercises 3-7 and 3-9
Page 123: Exercise 3-7
Pages 164-165: Brief Exercise 4-2, and 4-8
Page 170: Exercise 4-8
Pg.120
BE 3-7 Trek Company has he following data for April: units transferred out 40,000, and ending work in process 5,000 units that are 100% complete for material and 40% complete for conversion costs. If unit materials cost is $4 and unit conversion cost is $7, determine the cost to be assigned to the units transferred out and the units ending work in process.
BE3-9 Data for Hollins Company are given in BE 3-8. Production records indicate that 18,000 units were transferred out, and 2,000 units in ending work in process were 50% complete as to conversion cost and 100% complete as to materials. Prepare a cost reconciliation schedule.
Pg. 123
E 3-7 The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation.
Production: 7,000 units finished and transferred out: 3,000 units started that are 100% complete as to material and 20% as to conversion cost.
Manufacturing cost: Materials $33,000; labor $21,000; and overhead $36,000.
Instructions
Prepare production cost report.
Pg, 164-165
BE 4-2 Finney Inc. has conducted an analysis of overhead cost related to one of its production lines using a traditional cost system (volume-based) and an activity -based costing system. Here are the results.
Sales revenue Traditional Costing ABC
Overhead cost $ 600.000 $600,000
Product RX3 $34,000 $50,000
Product Y12 $36,000 $ 20,000
$ 70,000 $70,000
Explain how a difference in the overhead costs between the two systems may have occured.
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