Problem 1:
The Assembly Department of Webster Manufacturing uses a process cost accounting system and a weighted-average cost flow assumption. The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. During July, $190,000 of materials costs and $135,000 in conversion costs were charged to the department. The beginning work in process inventory was $103,000 on July 1, comprised of $80,000 of materials costs and $23,000 of conversion costs.
Other data for the month of July are as follows:
Beginning work in process inventory, 7/1 25,000 units (40% complete for conversion costs)
Units completed and transferred out 70,000 units
Ending work in process inventory, 7/31 30,000 units (30% complete for conversion costs)
Required: Prepare the July production cost report for the assembly department.
Problem 2:
Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:
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Activity Cost Pools (and Activity Measures)
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Estimated
Overhead Cost
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Machine related (machine-hours)................................
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$137,600
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Batch setup (setups)....................................................
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$532,800
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General factory (direct labor-hours)............................
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$105,300
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Expected Activity
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Activity Cost Pools
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Total
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Product X
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Product Y
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Machine related..........................................................................
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8,000
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1,000
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7,000
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Batch setup................................................................................
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8,000
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3,000
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5,000
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General factory..........................................................................
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9,000
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7,000
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2,000
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Required: Determine the amount of overhead to be allocated to each of the two products under activity-based costing.