PROBLEM 1
Millar Company has the following cost records for May 2016
|
Indirect factory labor
|
$ 10,000
|
Advertising Expense
|
$ 8,000
|
|
Direct materials used
|
13,000
|
Depreciation, factory equipment
|
4,200
|
|
Work in process, 5/1/15
|
5,000
|
Direct labor
|
11,000
|
|
Work in process, 5/31/15
|
6,500
|
Maintenance, office equipment
|
2,000
|
|
Depreciation, office equipment
|
1,000
|
Indirect materials
|
1,200
|
|
Sales Commission
|
10,000
|
Office Manager Salary
|
4,000
|
Instructions Prepare a cost of goods manufactured schedule for May 2016.
PROBLEM 2
Mottle Inc. fixed costs are expected to be $80,000 and variable costs are expected to be $20 per product. Sales price is $40 per product and targeted net income is $300,000
Instructions
a. Determine the required sales in units and dollars to break even.
b. Determine the required sales in units to achieve targeted net income of $300,000.
PROBLEM 3
Marvin Company estimates that annual manufacturing overhead costs will be $900,000. Estimated annual operating activity bases are: direct labor cost $450,000, direct labor hours 300,000, and machine hours 150,000.
a. Compute the predetermined overhead rate using (i) direct labor cost as the activity base (ii) direct labor hours as the activity base and (iii) machine hours as the activity base.
b. If Job 101 has 60,000 direct labor hours, compute the manufacturing overhead that it should be assigned using the predetermined overhead rate computed in question a. above.
c. If Job 102 has 20,000 machine hours, compute the manufacturing overhead that it should be assigned using the predetermined overhead rate computed in question a. above.
PROBLEM 4
Blake Johnson has the following cost and production data for the Mixing Department for December 2013
Cost data:
Beginning work in process inventory, December 1
Direct Materials $30,000
Conversion Cost $6,000
$36,000
Cost incurred during production in December
Direct Materials $390,000
Conversion costs $122,000
$512,000
Total Costs $548,000
Production data
Completed and transferred out 52,000
Ending work in process 8,000
Ending work in process was 100% complete as to materials and 25% complete as to conversion costs.
Instructions
(a) Compute the equivalent units for materials and conversion costs.
(b) Determine the unit cost for materials and conversion
Note: Can complete solutions in Excel and then paste in spaces below, or can type directly in spaces below.