Question

1.

Department G had 2,040 units 25% completed at the beginning of the period, 13,200 units were completed during the period, 1,700 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period:

Work in process, beginning of period	$28,300
Costs added during period:
Direct materials (12,860 units at $8)	102,880
Direct labor	88,200
Factory overhead	29,400

All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. The total cost of 2,040 units of beginning inventory which were completed during the period (round unit cost calculations to four decimal places and round your final answer to the nearest dollar)?

2.

Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below.

Product	Number of Units	Direct Labor Hours Per Unit	Machine Hours Per Unit
Blinks	1,109	3	8
Dinks	1,895	5	9

All of the machine hours take place in the Fabrication department, which has an estimated overhead of $117,500. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $85,100.

Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Dinks is

a.$63.32

b.$255.33

c.$79.15

d.$17.92

3.

Reynold's Company has a product with fixed costs of $305,000, a unit selling price of $26, and unit variable costs of $19. The break-even sales (units) if the variable costs are decreased by $3 is

a.43,571 units

b.19,063 units

c.30,500 units

d.16,053 units

Answer 1

1
	Direct materials	Conversion costs
To complete beginning work in process	0	1530	=2040*(1-25%)
Units started and completed	11160	11160	=13200-2040
Work in process, ending	1700	340	=1700*20%
Equivalent units of production	12860	13030
	Direct materials	Conversion costs
Costs added during period	102880	117600
Divide by Equivalent units of production	12860	13030
Cost per Equivalent unit	8.0000	9.0253
	Direct materials	Conversion costs	Total
Work in process, beginning	0	0	28300
To cmplete Work in process, beginning	0	13809	13809	=1530*9.0253
Total cost of 2,040 units of beginning inventory			42109
Total cost of 2,040 units of beginning inventory	42109
2
Total overhead	202600	=117500+85100
Divide by Total Direct labor hours	12802	=(1109*3)+(1895*5)
Single plantwide overhead rate	15.83
Factory overhead allocated per unit of Dinks	79.15	=5*15.83
Option C $79.15 is correct
3
Fixed costs	305000
Divide by Unit Contribution margin	10	=26-(19-3)
Break-even sales (units)	30500
Option C 30,500 units is correct