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Rustafson Corporation is a diversified manufacturer of consumer goods. The company’s activity-based costing system has the following seven activity cost pools:
| Activity Cost Pool | Estimated Overhead Cost | Expected Activity | |
| Labor-related | $ 29,200 | 4,000 | direct labor-hours |
| Machine-related | $ 7,000 | 7,000 | machine-hours |
| Machine setups | $ 18,000 | 500 | setups |
| Production orders | $ 24,000 | 500 | orders |
| Product testing | $ 24,000 | 1,200 | tests |
| Packaging | $ 47,600 | 3,400 | packages |
| General factory | $ 59,600 | 4,000 | direct labor-hours |
Required:
- Compute the activity rate for each activity cost pool.
Note: Round your answers to 2 decimal places.
Larner Corporation is a diversified manufacturer of industrial goods. The company’s activity-based costing system contains the following six activity cost pools and activity rates:
| Activity Cost Pool | Activity Rates | |
| Labor-related | $ 4.00 | per direct labor-hour |
| Machine-related | $ 7.00 | per machine-hour |
| Machine setups | $ 80.00 | per setup |
| Production orders | $ 100.00 | per order |
| Shipments | $ 100.00 | per shipment |
| General factory | $ 7.00 | per direct labor-hour |
Cost and activity data have been supplied for the following products:
| J78 | B52 | |
| Direct materials cost per unit | $ 2.50 | $ 21.00 |
| Direct labor cost per unit | $ 4.00 | $ 8.00 |
| Number of units produced per year | 2,000 | 100 |
| Total Expected Activity | ||
| J78 | B52 | |
| Direct labor-hours | 1,400 | 50 |
| Machine-hours | 3,900 | 50 |
| Machine setups | 7 | 1 |
| Production orders | 7 | 1 |
| Shipments | 8 | 1 |
Required:
Compute the unit product cost of each product listed above.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Clonex Labs, Incorporated, uses the weighted-average method of process costing. The following data are available for one department for October:
| Units | Percent Completed | ||
| Materials | Conversion | ||
| Work in process, October 1 | 47,000 | 85% | 65% |
| Work in process, October 31 | 37,000 | 73% | 48% |
The department started 399,000 units into production during the month and transferred 409,000 completed units to the next department.
Required:
Compute the equivalent units of production for October.
Superior Micro Products uses the weighted-average method of process costing. Data for the Assembly Department for May appear below:
| Materials | Labor | Overhead | |
| Work in process, May 1 | $ 24,700 | $ 39,900 | $ 194,085 |
| Cost added during May | $ 149,915 | $ 26,600 | $ 129,390 |
| Equivalent units of production | 2,100 | 2,000 | 1,900 |
Required:
Compute the cost per equivalent unit for materials, labor, overhead, and in total.
Note: Round your answers to 2 decimal places.
Helix Corporation uses the weighted-average method of process costing. It produces prefabricated flooring in a series of steps carried out in production departments. All of the material used in the first production department is added at the beginning of processing in that department. Data for May for the first production department follow:
| Units | Percent Complete | ||
| Materials | Conversion | ||
| Work in process inventory, May 1 | 59,000 | 100% | 30% |
| Work in process inventory, May 31 | 39,000 | 100% | 20% |
| Materials cost in work in process inventory, May 1 | $ 49,600 |
| Conversion cost in work in process inventory, May 1 | $ 13,900 |
| Units started into production | 253,400 |
| Units transferred to the next production department | 273,400 |
| Materials cost added during May | $ 59,740 |
| Conversion cost added during May | $ 199,812 |
Required:
For May:
- Calculate the first production department’s equivalent units of production for materials and conversion.
- Compute the first production department’s cost per equivalent unit for materials and conversion.
- Compute the first production department’s cost of ending work in process inventory for materials, conversion, and in total.
- Compute the first production department’s cost of the units transferred to the next production department for materials, conversion, and in total.