Pierre Heud has a cycle of 3 days, and uses a Raw and In-process (RIP) account...

 

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Pierre Heud has a cycle of 3 days, and uses a Raw and In-process (RIP) account and charges all conversion costs to Cost of Goods Sold (COGS). At the end of each month, all inventories are counted, conversion costs components are estimated and inventory account balances are adjusted. Raw material cost is backflushed from RIP to Finished Goods Inventory (FGI). The following information is provided for the month of May: RIP - beginning, including PHP 1,000 conversion cost FGI - beginning, including PHP 6,000 conversion cost Direct labor cost Raw materials received on credit Factory overhead applied RIP-end, per physical count, including PHP 7,000 conversion cost FGI-end, per physical count, including PHP 4,000 conversion cost 5,000 10,000 400,000 300,000 500,000 20,000 6,000 Required: 1. Amount of conversion costs included in COGS for the month of May 2. Amount of direct materials backflushed from RIP to FGI? 3. Amount of direct materials backflushed from FGI to COGS? ACTIVITY-BASED COSTING & ACTIVITY-BASED MANAGEMENT - 3 points A company has identified the following overhead costs and cost drivers for the coming year. Cost Driver Overhead Item Budgeted Cost (PHP) Budgeted Activity Level Machine set-up Inspection No. of set-ups 20,000 200 No. of inspections 130,000 6,500 Materials handling Engineering No. or material moves Engineering hours 80,000 8,000 50,000 1.000 Direct Materials The following information was collected from the two products that were bring produced: Chong PHP 8,000 Ching PHP 12,000 Direct Labor PHP 2,000 PHP 4,000 Units completed 50 200 No. of set-ups 2 4 No. of inspections 10 30 No. of material moves 10 50 Engineering hours 50 10 Required: 1. Overhead cost allocated to Ching and Chong 2. Cost per unit of Ching and Chong 3. Selling price per unit of Ching and Chong, assuming a mark-up of 40% of cost. Pierre Heud has a cycle of 3 days, and uses a Raw and In-process (RIP) account and charges all conversion costs to Cost of Goods Sold (COGS). At the end of each month, all inventories are counted, conversion costs components are estimated and inventory account balances are adjusted. Raw material cost is backflushed from RIP to Finished Goods Inventory (FGI). The following information is provided for the month of May: RIP - beginning, including PHP 1,000 conversion cost FGI - beginning, including PHP 6,000 conversion cost Direct labor cost Raw materials received on credit Factory overhead applied RIP-end, per physical count, including PHP 7,000 conversion cost FGI-end, per physical count, including PHP 4,000 conversion cost 5,000 10,000 400,000 300,000 500,000 20,000 6,000 Required: 1. Amount of conversion costs included in COGS for the month of May 2. Amount of direct materials backflushed from RIP to FGI? 3. Amount of direct materials backflushed from FGI to COGS? ACTIVITY-BASED COSTING & ACTIVITY-BASED MANAGEMENT - 3 points A company has identified the following overhead costs and cost drivers for the coming year. Cost Driver Overhead Item Budgeted Cost (PHP) Budgeted Activity Level Machine set-up Inspection No. of set-ups 20,000 200 No. of inspections 130,000 6,500 Materials handling Engineering No. or material moves Engineering hours 80,000 8,000 50,000 1.000 Direct Materials The following information was collected from the two products that were bring produced: Chong PHP 8,000 Ching PHP 12,000 Direct Labor PHP 2,000 PHP 4,000 Units completed 50 200 No. of set-ups 2 4 No. of inspections 10 30 No. of material moves 10 50 Engineering hours 50 10 Required: 1. Overhead cost allocated to Ching and Chong 2. Cost per unit of Ching and Chong 3. Selling price per unit of Ching and Chong, assuming a mark-up of 40% of cost.