6-34
Luke's Lubricants starts business on January 1. The following operations and data are available for January for the one lubricants it produces:
|
Beginning Inventory
|
Gallons
|
|
Beginning Inventory
|
0
|
|
Started in January
|
900,000
|
|
Ending work-in-process inventory(80% complete)
|
100,000
|
Cost s incurred in January follow:
Materials $564,000
Labor 145,200
Manufacturing Overhead 294,000
All production at Lukes is sold as it is produces(there are no finished goods inventories).
Requires
a. Compute cost of goods sold for January
b. What is the value of work-in-process inventory on January 31
6-39
Tiger furnishing produces two models of cabinets for home theater components, the Basic and the Dominators. Data on operations and cost for March follow:
|
|
Basic
|
Dominator
|
Total
|
|
Units Produce
|
1,000
|
250
|
1,250
|
|
Machines on hours
|
4,500
|
2,500
|
7,000
|
|
Direct labor hours
|
3,000
|
2,000
|
5,000
|
|
Direct material cost
|
$10,000
|
$3,750
|
$13,750
|
|
Direct labor cost
|
64,500
|
35,500
|
100,000
|
|
Manufacturing overhead cost
|
|
|
175,000
|
|
Total cost
|
|
|
$288,750
|
Required
Compute the predetermine overhead rate assuming that Tiger Furnishing use direct labor-hours to allocate overhead cost
6-40
Refer to the data in Exercise 6-39. Compute the predetermine overhead rate assuming that Tiger Furnishing use direct labor cost to allocate overhead cost
6-41
Refer to the data in Exercise 6-39. Compute the predetermine overhead rat assuming that Tiger Furnishing uses machine-hours to allocate overhead cost
6-46
Refer to the data in Exercise 6-39. Compute the individual product cost per unit assuming that Tiger Furnishing uses direct labor cost to allocate overhead to the products