- EX 3-4. Factory overhead rate, entry for applying factory overhead, and factory overhead account balance
OBJ. 1, 3
The chief cost accountant for Fizzy Fruit Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning April 1 would be $147,000, and total direct labor costs would be $105,000. During April, the actual direct labor cost totaled $12,000, and factory overhead cost incurred totaled $17,050.
- What is the predetermined factory overhead rate based on direct labor cost?
- Journalize the entry to apply factory overhead to production for April.
- What is the April 30 balance of the account Factory Overhead—Blending Department?
- Does the balance in part (c) represent over- or underapplied factory overhead?
- EX 3-5. Equivalent units of production
OBJ. 2
The Converting Department of Soft Touch Towel and Tissue Company had 790 units in work in process at the beginning of the period, which were 60% complete. During the period, 13,700 units were completed and transferred to the Packing Department. There were 1,140 units in process at the end of the period, which were 25% complete.
Direct materials are placed into the process at the beginning of production.
Determine the number of equivalent units of production with respect to direct materials and conversion costs.
- EX 3-10. Costs per equivalent unit
OBJ. 2
Georgia Products Inc. completed and transferred 89,000 particle board units of production from the Pressing Department. There was no beginning inventory in process in the department. The ending in-process inventory was 2,400 units, which were ⅗ complete as to conversion cost. All materials are added at the beginning of the process. Direct materials cost incurred was $219,360, direct labor cost incurred was 28,100, and factory overhead applied was $12,598.
Determine the following for the Pressing Department:
- Total conversion cost
- Conversion cost per equivalent unit
- Direct materials cost per equivalent unit
