Question

Don't Cry Over Spilled Milk, Inc., a manufacturer of mops, uses the weighted average method in its processing costing system. Don't Cry uses a traditional costing system in the allocation of its manufacturing overhead (MOH) to production; MOH costs are allocated to production on the basis of machine hours logged during the period. Total estimated MOH for the period was $400,000 and total estimated machine hours were 100,000. The following data concern the operations of the company's first processing department, Assembly, for June 2018. Beginning Work in Process 800 mops, 60% complete with respect to direct materials, 10% complete with respect to conversion Costs in Beginning Work in Process $3,712 (of this amount, $1,296 is for direct materials) Units Started in June 16,000 mops Direct Product Costs Added During June direct materials $47,076; direct labor $216,213 Ending Work in Process 300 mops, 60% completed with respect to direct materials, 70% complete with respect to conversion During June, 76,664 actual machine hours were logged during production. (round all calculation to 2 decimal places. all answers should include commas and 2 decimal places i.e. 1,000.00 not 1000.) The cost to assemble one mop in June was $ The cost of goods completed and transferred out of the Assembly department during June equals $ The conversion costs included in Work in Process-Assembly at the beginning of July would equal $

Answer 1

CALCULATION OF MANUFACTURING OVERHEAD RATE on basis of MACHINE HOUR
AS given in question
total estimated manufacturing overhead is $ 400000
total estimated machine hour IS 100000
Hence, manufecturing overhead rate would = $400000/100000 = $4/ hour  

1. CALCULATION OF COST OF ASSEMBLE ONE MOP IN JUNE MONTH
O calculation of cost to assembble one MOP in June Particulars Amount $ Distect Material Cost in June conversion cost in June 47076 216213 Manufacturing overhead cost ( Altucl wžachine howrs x Manchine hour fate ( 16664 x $ 4 /hour) 306656 total cost during the mouth $569945 Cost per mop in June Total cost eis Tune Jume month units 7 $569945 16000 → 35.62 Tmop


2. CALCULATION OF COST OF GOODS COMPLETED AND TRANSFERRED OUT DURING THE MONTH

2) calculation of cost of Goods Completed and Hoansferored out during Tune month. Units trefferred out and allocated to direct matericel x Direct material ceest lumits => 1600 16 500 x 2.9 /mop $ 47856 Units tsans pened out and alloweeted bo Cerimesion cost X Conversion Cees / mop » 16500 *$13.08/mop 2) $915820 Total cost of units transferred out - $47850 + $215820 7 $263670


WORKING NOTES
STATEMENT SHOWING EQUIVALENT PRODUCTION OF UNITS


CALCULATION OF COST PER UNIT

Cost unit and total cost Calculation of por @ Material cost per units Total cost of material = $47,076 Add: Privios month cast ay $ 1,296 Total $ 48372 Digject Material Cost per units $48372 - 16680 7$2.97 Mops (b) Conversion cost per unit Conversion cost during the mouth-> $216,213 Pervious month cest ($3712 - $1296) => Total least $ 218629 Add: $ 2,416 Conversion coost per cuit- $218629 16710 → $dept 13.08/mops