Problem Set 1 Question 1: Job Order Costing (12 marks) The information below has been taken from the cost records of the Bean Counters Company for 2021 Raw materials used in production $1,400 Total manufacturing costs 8,000 Applied factory overhead 3,300 Selling & Administrative expense 2,150 Inventories: Raw materials, January 1 480 Raw materials, December 31 520 Work in process, January 1 730 Work in process, December 31 Finished goods, January 1 480 Finished goods, December 31 460 Required(show your calculation): a. Compute the cost of raw materials purchased during 2021(2 marks). b. The company applies manufacturing overhead to products on the basis of the number of direct labour hours. It estimated 1,100 direct labour hours at the beginning of the year. The actual direct labour hours is 1,000 for 2021. Compute the predetermined overhead rate that was used during 2021(2 marks). c. Compute the direct labour cost (3 marks) d. Compute the cost of goods manufactured for 2021(3 marks). e. Compute cost of goods sold for 2021(2 marks). 650 Question 2: Process costing (14 marks) Ridgeway Co. has provided the following information: Work in Process: April 1 (100% complete for materials, 90% complete for conversion) 4,000 units Materials $16,700 Conversion $17,000 Units started 81,000 units April costs Materials $349,650 Conversion $375,375 11,000 units Work in Process: April 30 (70% complete for materials, 10% complete for conversion) Required(show your calculation): Using the weighted average method of process costing, complete each of the following: a. How many units were completed and transferred to Finished Goods?(2 marks) b. Calculate equivalent units (4 marks). c. Calculate cost per equivalent unit. Round your answers to four decimal places(3 marks). d. What is the dollar amount transferred to Finished Goods? Round your answer to a whole dollar amount(2 marks). e. Calculate the cost of the ending Work in Process. Round your answer to a whole dollar amount