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1) Hardrock Company uses job costing. Hardrock Company has two departments, Sanding and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Sanding Department and direct labor hours in the Finishing Department. The following additional information is available:

Estimated amounts

Sanding Dept.

Finishing Dept.

Direct labor cost

$250,000

$500,000

Direct labor hours

32,000

50,000

Manufacturing overhead costs

$400,000

$250,000

Actual data for completed Job No. 140 is as follows:

Actual amounts

Sanding Dept.

Finishing Dept.

Direct materials requisitioned

$90,000

$45,000

Direct labor cost

$50,000

$40,000

Direct labor hours

7,000

5,000

Compute the predetermined manufacturing overhead rate for the Sanding Department.

Compute the predetermined manufacturing overhead rate for the Finishing Department.

What is the total manufacturing overhead cost for Job. No. 140?

If Job No. 140 consists of 500 units of product, what is the average unit cost of this job?

2) Records for Speedy's Custom Networks contained the following data.

Compute:

Work in process inventory on June 30

Finished goods inventory on June 30

Cost of goods sold for June

3) The following account balances at the beginning of January were selected from the general ledger of Bluestone Industries:

Work in process inventory           $0

Raw materials inventory               $30,900

Finished goods inventory             $54,800

Additional data:

Actual manufacturing overhead for January amounted to $80,500.

Total direct labor cost for January was $70,000; actual direct labor hours for January were 4,200.

The predetermined manufacturing overhead rate is based on direct labor hours. The budget for the year called for $350,000 of direct labor cost and $425,000 of manufacturing overhead costs. Estimated direct labor hours for the year were expected to be 20,000.

The only job unfinished on January 31 was Job No. 449, for which total direct labor charges were $22,000 (1,200 direct labor hours) and total direct material charges were $17,600.

Cost of direct materials placed in production during January totaled $129,500. There were no indirect material requisitions during January.

January 31 balance in raw materials inventory was $30,000.

Finished goods inventory balance on January 31 was $44,700.

Required:

Determine the predetermined manufacturing overhead rate.

Determine the amount of materials purchased during January.

Determine cost of goods manufactured for January.

Determine the work in process inventory balance on January 31.

Determine cost of goods sold for January.

Determine whether manufacturing overhead is overallocated or underallocated and by what amount at Jan. 31.

4) Direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:

WIP beginning (50% for conversion)

28,400 units

Units started

124,000 units

Units completed and transferred out

107,000 units

WIP ending (50% for conversion)

45,400 units

Beginning WIP direct materials

$53,200

Beginning WIP conversion costs

$19,600

Costs of materials added

$442,100

Costs of conversion added

$304,650

Required:

What are the total equivalent units for direct materials?

What are the total equivalent units for conversion costs?

What is the cost per equivalent unit for direct materials?

What is the cost per equivalent unit for conversion costs?

What is the total cost of units completed and transferred out?

What is the total cost of units remaining in ending WIP?

Estimated amounts

Sanding Dept.

Finishing Dept.

Direct labor cost

$250,000

$500,000

Direct labor hours

32,000

50,000

Manufacturing overhead costs

$400,000

$250,000

 

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