Question

Quiz 4 and 113410].docx - Read-Only ayout References Mailings Review View Help Grammarly Gato Industries mass produces ceramic vases to sell to flower shops around the country. They have several processing departments for their process cost system. The following information regards the Painting department during the month of August 2019: Materials #Units Beginning Work in Process6000 Ending Work-in-Process 4500 Units started during August 110,000 Conversion 50% 50 What are the total equivalent units of production for Material Costs for the month of August? Answer: Corpus Corp. produces two types of handheld radio: Basic and Supreme. The following information shows the various activity levels related to the production of Basic and Supreme products: Machine Hours Equipment Setups Customer Orders Basic 275,000 200 12,000 Supreme 100.000 500 2.500 Corpus Corp. calculated overhead rates for each of their cost pools: • Order Size cost pool: $12 per machine hour Setup cost pool: $5,000 per equipment setup Customer Order cost pool: $23 per customer order What is the total amount of overhead that will be allocated to the Basic radios? D Focus 0 Hi 5 v a ) R x = e

Answer 1

		Summery of Physical units and equivalent units calculation
		Units to be accounted for	Physical units
		Units in the beginning WIP inventory	6000
		Units started during the period	110000
		Total units to be accounted for	116000
				Equivalent units
		Units accounted for	Physical unit	Material	Conversion
		Units completed and transferred out	111500	111500	111500
		Units in ending WIP inventory	4500	3600	2250	(Materials: 80%*4500), Conversion:50%*4500)
		Total units accounted for	116000	115100	113750
	ANSWER	Equivalent Units of Production for materials	115100
		OVERHEAD ALLOCATED TO BASIC RADIOS
				A	B	C=A*B
		Cost Pool	Activity	Rate	Activity Volume	Allocated Overhead
		Order Size	Machine Hour	$12	275000	$3,300,000
		Set Up	Equipment Setup	$5,000	200	$1,000,000
		Customer Order	Customer order	$23	12000	$276,000
					TOTAL	$4,576,000
		Total amount of overhead allocated to Basic Radios	$4,576,000