Bench Manufacturing Company uses a job order cost accounting system. On April 1, the company has Worked in Process Inventory of $15,000 representing Job No. 323 (materials $8,000, direct labor $5,000, and applied overhead based on 40% direct labor cost ). In April, a summary of source documents reveals the following:

Purchase Order Material A $10,000

Material B 10,000

Materials Requisitions Labor Time Tickets

Job No. 323 # 5 Mat A $ 2,500 JO 323 $ 3,000

              324 # 6 Mat B   3,000       324    4,000

              325 # 7 Mat A    3,500       325    3,000

              326 # 8 Mat B    2,500       326    1,500

General use: Indirect Materials $900 Indirect Labor $1,600

Job No. 323 and 324 are completed but only Job 324 was delivered.

From the above information, prepare cost sheets and answer the following:

1. the total cost of goods manufactured amount to _______.
2. The cost of goods sold amount to ______.
3. If material A has a beginning balance of $3,000, the total cost of raw materials inventory end for Mat A is ______.
4. Material B has no beginning blance, the raw materials invty end for Mat B is __________.
   
   

   At the end of the month, Cutting has still 200 rag dolls in process as it is only 50% complete while 800 were transferred to the next dept. Sewing Department has still 100 in process at the end of the month which is 60% done.

   From the above information, complete the cost flow and answer the following:

   In the cutting department, compute for

5. The equivalent units _________.
6. The cost per unit _________.
7. Cost transferred to the Sewing Department ___________.
8. Work in process end in the Cutting Department ___________.
   In the sewing department, compute for :
9. The equivalent units in the Sewing Department is _________.
10. The unit cost added in this department is __________.

Transcribed Image Text:

Best Manufacturing Company uses the process cost system to cost its product, rag dolls, which it plans to mass produce at a rate of 1,000 dolls per month. It applies overhead at a rate of 50% of labor cost and started its operation in October 2020 in time for Christmas. A cost flow is illustrated below for its two departments: MATERIALS LABOR FACTORY OVERHEAD WORK IN PROC- Cutting DM DL OH 1,000 dolls ? P35,100 15,000 In Process ?? 200dolls50%done 800 to Sewing P??? WORK IN PROC- Sewing Finished 700 units ?? DM 7,900 15,000 DL OH In Process ?? 100 dolls 60%done Additional costs to process further in the 2nd department Best Manufacturing Company uses the process cost system to cost its product, rag dolls, which it plans to mass produce at a rate of 1,000 dolls per month. It applies overhead at a rate of 50% of labor cost and started its operation in October 2020 in time for Christmas. A cost flow is illustrated below for its two departments: MATERIALS LABOR FACTORY OVERHEAD WORK IN PROC- Cutting DM DL OH 1,000 dolls ? P35,100 15,000 In Process ?? 200dolls50%done 800 to Sewing P??? WORK IN PROC- Sewing Finished 700 units ?? DM 7,900 15,000 DL OH In Process ?? 100 dolls 60%done Additional costs to process further in the 2nd department

Answer rating: 100% (QA)

Beach Manufacturing Job No 323 324 326 325 Particolars Opening 8000 ... View the full answer