Question

Mailir me Insert Draw Layout References Design X Calibri (Bo... v 12 v A À Aav Ao Paste BIŲab X, X ADA The following four companies use a process cost system: Required: Treating each case independently, find the missing amounts. Solana Vista Co. Inc. Lindsay Company $13,200 $1,450 Conversion Cost Direct Labor Depreciation Manufacturing Overhead Rent Direct Materials Supervisor's Salary Utilities Ray Co. $235,000 $56,150 $42,9001 $25,200 $2,350 $17,300 $25,400 $143,500 $16,050 $10,000 $89,000 $361,950 $39,500|| $5,100 $19,350 $2,600 $24,100 $8,750 1 $820 $16,950 $1,800 $620

Answer 1

Here are the assumptions for this

1. Depreciation is Equipment depreciation for the equipment used in production.
2. Rent is for the production facility
3. Utilities are for production directly
4. Supervisor is for product supervision only.

The following relations have been used

Conversion costs = Direct Labor + Manufacturing Overhead

Manufacturing overhead = Depreciation + Rent + Supervisor's salary + Utilities

Solana

Conversion cost = 42,900 + 25,400 = 68,300
Utilities = 25,400 - 2,350 - 16,050 - 5,100 = 1,900

Vista

Direct Labor = 235,000 - 143,500 = 91,500
Rent = 143,500 - 17,300 - 19,350 - 24,100 = 82,750

Ray

Manufacturing Overhead = 56,150 - 25,200 = 30,950
Depreciation = 30,950 - 10,000 - 2,600 - 8,750 = 9,600

Lindsay

Manufacturing overhead = 1,450 + 820 + 1,800 + 620 = 4,690
Conversion cost = 13,200 + 4,690 = 17,890