Question

MHR Inc. uses a standard process costing system. All material is added at the beginning of the production process. Per unit standard costs for one of the company’s products are as follows:
Direct material ........ $ 8.25
Direct labor ......... 1.60
Overhead ........... 4.90
Total standard cost ...... $ 14.75
October 2013 production and cost information for MHR follow:
Units in beginning inventory (40% complete as to DL, 70% complete as to OH)..14,800
Units started.............................385,000
Units in ending inventory (60% complete as to DL, 85% complete as to OH)..4,300
Current period costs:
Direct material ........................$ 3,201,032
Direct labor .............................625,510
Overhead .............................1,904,390
a. Prepare an equivalent units of production schedule.
b. Determine the cost of the beginning inventory (in total and by cost component).
c. Assign costs to goods transferred and to ending WIP inventory.
d. Calculate and label (F or U) the variances.



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  • CreatedJune 03, 2014
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