#1 chin company incurred direct materials costs of $300,000 during the year. manufacturing overhead rate is 70%. how much are chin company total manufacturing costs for the year?
#2 wrapping department's output during the period consist of 10,000 units completed and transfered out, and 600 units in ending work in process that were 75% complete as to materials and conversion costs.begining inventory was 800 units that were 30% equivalent units of production for materials?
#3 a department adds raw materials to a process at the begining of the process and incurs conversion costs uniformely throughout the process. for january there were no units in the beginning work in process inventory;10,000 units were started into production in january;and there were 4,000 units were 40% complete in the ending work in process inventory at the end of january. the weighted average method is used.
what were the equivalent units of prodduction for conversion costs for the month of january
#4 Materials cost of 200,000 and conversion costs of $214,200 were charged to a processing department in september. materials are added at the beginning of the process, whie conversions cots are incurred uniformely throughout the process. there were no units in beginning work in process, 100,000 units were stated into production in september, and there were 8,000 units ending work in process that were 40%completed at the end of september.
-what was the total amount of manufactoring cost assigned to those units that were completed and transfered out of the process in september if the weighted averge method is used?
-what was the total amount of manufacturing costs assigned to the 8,000 units in the ending work in process if the eighted averaage method is used?
can you please show me the step by step on how you get the solution
thanks,
#1 To calculate the total manufacturing costs for the year, we need to add the direct materials cost and the manufacturing overhead cost.
Direct materials cost = $300,000
Manufacturing overhead rate = 70%
Manufacturing overhead cost = Direct materials cost * Manufacturing overhead rate
Manufacturing overhead cost = $300,000 * 70% = $210,000
Total manufacturing costs = Direct materials cost + Manufacturing overhead cost
Total manufacturing costs = $300,000 + $210,000 = $510,000
Therefore, the total manufacturing costs for the year are $510,000.
#2 To calculate the equivalent units of production for the wrapping department, we need to consider the units completed and transferred out and the units in ending work in process.
Units completed and transferred out = 10,000 units
Units in ending work in process = 600 units (75% complete)
Equivalent units of production = Units completed and transferred out + (Units in ending work in process * % completion)
Equivalent units of production = 10,000 units + (600 units * 75%)
Equivalent units of production = 10,000 units + (600 units * 0.75)
Equivalent units of production = 10,000 units + 450 units
Equivalent units of production = 10,450 units
Therefore, the equivalent units of production for the wrapping department are 10,450 units.
#3 To calculate the equivalent units of production for conversion costs in January, we need to consider the units started and the units in ending work in process.
Units started in January = 10,000 units
Units in ending work in process = 4,000 units (40% complete)
Equivalent units of production = Units started in January + (Units in ending work in process * % completion)
Equivalent units of production = 10,000 units + (4,000 units * 40%)
Equivalent units of production = 10,000 units + (4,000 units * 0.40)
Equivalent units of production = 10,000 units + 1,600 units
Equivalent units of production = 11,600 units
Therefore, the equivalent units of production for conversion costs in January are 11,600 units.
#4 a) To calculate the total amount of manufacturing cost assigned to the units completed and transferred out in September using the weighted average method, we need to consider the units started, units completed, and the amount of manufacturing costs incurred.
Materials cost = $200,000
Conversion costs = $214,200
Units started in September = 100,000 units
Units in ending work in process = 8,000 units (40% complete)
Total manufacturing cost = Materials cost + Conversion costs
Total manufacturing cost = $200,000 + $214,200
Total manufacturing cost = $414,200
Total units to be accounted for = Units that were in beginning work in process + Units started in September
Total units to be accounted for = 0 units + 100,000 units
Total units to be accounted for = 100,000 units
Equivalent units of production = Units completed and transferred out + (Units in ending work in process * % completion)
Equivalent units of production = 100,000 units + (8,000 units * 40%)
Equivalent units of production = 100,000 units + (8,000 units * 0.40)
Equivalent units of production = 100,000 units + 3,200 units
Equivalent units of production = 103,200 units
Average cost per equivalent unit = Total manufacturing cost / Equivalent units of production
Average cost per equivalent unit = $414,200 / 103,200 units
Average cost per equivalent unit = $4.01 (rounded to two decimal places)
Total manufacturing cost assigned to units completed and transferred out = Average cost per equivalent unit * Units completed and transferred out
Total manufacturing cost assigned to units completed and transferred out = $4.01 * 100,000 units
Total manufacturing cost assigned to units completed and transferred out = $401,000
Therefore, the total amount of manufacturing cost assigned to the units completed and transferred out in September is $401,000.
b) To calculate the total amount of manufacturing costs assigned to the 8,000 units in the ending work in process in September using the weighted average method, we can use the same average cost per equivalent unit calculated in part a).
Total manufacturing cost assigned to the 8,000 units in the ending work in process = Average cost per equivalent unit * Units in ending work in process
Total manufacturing cost assigned to the 8,000 units in the ending work in process = $4.01 * 8,000 units
Total manufacturing cost assigned to the 8,000 units in the ending work in process = $32,080
Therefore, the total amount of manufacturing costs assigned to the 8,000 units in the ending work in process in September is $32,080.
Sure! I'll walk you through the step-by-step process to solve each of these problems.
#1: To find the total manufacturing costs for the year for Chin Company, you need to calculate the manufacturing overhead and then add it to the direct materials costs. The manufacturing overhead is calculated by multiplying the direct materials cost by the manufacturing overhead rate.
Step 1: Calculate the manufacturing overhead:
Manufacturing overhead = Direct materials cost * Manufacturing overhead rate
= $300,000 * 70%
= $210,000
Step 2: Add the manufacturing overhead to the direct materials cost:
Total manufacturing costs = Direct materials cost + Manufacturing overhead
= $300,000 + $210,000
= $510,000
Therefore, Chin Company's total manufacturing costs for the year are $510,000.
#2: To solve this problem, you need to calculate the equivalent units of production for both materials and conversion costs.
Step 1: Calculate equivalent units of production for materials:
Equivalent units of production for materials = Units completed and transferred out + Units in ending work in process * Percentage completion
= 10,000 units + 600 units * 75%
= 10,000 units + 450 units
= 10,450 units
Step 2: Calculate equivalent units of production for conversion costs:
Equivalent units of production for conversion costs = Units completed and transferred out + Units in ending work in process * Percentage completion
= 10,000 units + 600 units * 75%
= 10,000 units + 450 units
= 10,450 units
Therefore, the equivalent units of production for both materials and conversion costs are 10,450 units.
#3: This problem requires calculating the equivalent units of production for conversion costs using the weighted average method.
Step 1: Calculate equivalent units of production for conversion costs:
Equivalent units of production for conversion costs = Units started into production during the period + Units in ending work in process * Percentage completion
= 10,000 units + 4,000 units * 40%
= 10,000 units + 1,600 units
= 11,600 units
Therefore, the equivalent units of production for conversion costs for the month of January are 11,600 units.
#4: This problem requires calculating the total manufacturing cost assigned to the completed units and the ending work in process using the weighted average method.
Step 1: Calculate the total manufacturing cost assigned to the completed units:
Total manufacturing cost assigned to completed units = Materials cost + Conversion costs
= $200,000 + $214,200
= $414,200
Step 2: Calculate the total manufacturing cost assigned to the ending work in process:
Total manufacturing cost assigned to ending work in process = Materials cost + Conversion costs
= Materials cost * Percentage completion + Conversion costs * Percentage completion
= ($200,000 * 40%) + ($214,200 * 40%)
= $80,000 + $85,680
= $165,680
Therefore, the total amount of manufacturing cost assigned to the completed units is $414,200 and the total amount assigned to the ending work in process is $165,680 if the weighted average method is used.
I hope this helps! Let me know if you have any further questions.