Question

Can you please help with 5,6,7 and 8?

ANSWERS 1-4

Using a spreadsheet and based on the information provided in the next section, complete the following requirements: 1. Determine the predetermined overhead rate. 2. Determine the total number of frames to account for. 3. Prepare an equivalent unit's schedule. The schedule should follow the format below; you may add additional information if you would like. Whole Units Equivalent Units Direct Material Glass Conversion Costs xxX (Actual)Direct Materials Wood Beginning Start/Completed Completed/Transferred Out Ending xxX xxX XxX 4. 5. 6. 7. 8. Determine the total cost for the wood and the unit amount for the wood for one frame. Determine the total cost for the glass and the unit cost for each pane of glass. Determine the total conversion cost and the conversion cost per frame. Determine the total equivalent cost per frame. Prepare a Cost of Production report. This report should show all costs transferred into Work-in- Process and the costs transferred to Finished Goods. Determine the amounts for the following. This process uses FIFO costing. 9. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufacturing Overhead e) Gross Margin f Income from Operations g) Net Income 10. Prepare the necessary Journal Entries related to the manufacturing cycle for this accounting period. Prepare journal entries for the accounting period. Use the account numbers in the chart of accounts, below, instead of the accounts names when writing the journal entries in Manufacturing Process Information Mr. Frank, the CEO of Frank's Frames, Inc. has begun a small manufacturing process that will Frank the m9 manufacture picture frames and then sell the frames to merchandising companies. The manufacturing process starts with the construction of the wood molding, inspected and then glass will be installed as a final step in the process. Once the frames are completed they are then transferred to finished goods. This is a process cost system and the company elects to use the FIFO method of accounting for product costs Direct material-wood is added 100% at the beginning of the process. Direct material glass is added 100% as the last step in the manufacturing process At the beginning of the accounting period, Mr. Frank estimates that production will be 80,000 frames during the year. Estimated factory overhead is $40,000. This information is to be used to determine the application rate for the manufacturing overhead Estimated and actual direct labor costs totaled $29,100. Actual factory overhead costs totaled $36,000 The following information is available concerning direct materials. Direct Materials-Wood 0 board feet Beginning inventory Purchase of wood 240,000 board feet @ $1.60 a foot The company starts 75,000 frames. Each frame contains three board feet of wood molding Direct Material-Glass Beginning inventory Purchases of glass 0 panes of glass 240,000 panes of glass @ $.25 per pane Used 72,000 panes this period The Work-in-Process account has the following information: Ending work in process inventory is 100% complete as to wood molding 25% complete as to conversion costs 0% complete as to glass panes The Finished Goods account has the following Information: The finished goods inventory at January 1, 2018 had a balance of 20,000 frames at a cost of $140,000 and on December 31, 2018 had an ending balance of 10,000 frames The selling price of the frame is $10.00. tax rate is 30% Selling and Administrative Costs totaled $100,000; 1) the predetermined overhead rate Estimated Factory overhead/ Estimated production of frames- $40000 80000 $0.50 per frame 2) The total number of frames to account for are: Opening WIP Started Frames to account for 0 75000 75000 3) Equivalent units schedule Whole Units DM Wood DM GlassConversion Costs 0 72000 Beginning WIP Started and completed Completed/Transferred out 72000 Ending WIP Equivalent units 72000 72000 72000 3000 3000 0 (0%) 750 (25%) 75000 72000 72750 4) Total cost of woods 75000*3*$1.6 $360000 Cost per frame $360000 /75000 $4.8 per frame

Answer 1

1) the predetermined overhead rate = Estimated Factory overhead/ Estimated production of frames =
$40000 / 80000 = $0.50 per frame
2) The total number of frames to account for are:
Opening WIP	0
Started	75000
Frames to account for	75000
3) Equivalent units schedule:
	Whole Units	DM Wood	DM Glass	Conversion Costs
Beginning WIP	0
Started and completed	72000	72000	72000	72000
Completed/Transferred out	72000
Ending WIP	3000	3000	0 (0%)	750 (25%)
Equivalent units		75000	72000	72750
4) Total cost of woods = 75000*3*$1.6 = $360000
Cost per frame = $360000 / 75000 = $4.8 per frame
5) Total cost of glass = 72000*$0.25 = $18000
Cost per frame = $18000 / 72000 = $0.25
6)Total conversion cost = Direct labor cost + Factory overhead applied = 29100+(72750*0.50) = $65475
Conversion cost per frame = $65475 / 72750 = $0.90 per frame
7) Total equivalent cost per frame = cost of (wood+glass+conversion cost) = $4.8+$0.25+$0.90 = $5.95 per frame
8) Cost of Production Report, cost of transferred out and cost of Closing WIP :
	Whole Units	DM Wood	DM Glass	Conversion Costs	Total $
Beginning WIP	0
Started and completed	72000	72000	72000	72000
Completed/Transferred out	72000
Ending WIP	3000	3000	0 (0%)	750 (25%)
Equivalent units		75000	72000	72750
Cost Incurred:		360000	18000	65475
Cost per Eq. unit		4.8	0.25	0.9
Cost of Opening WIP		0	0	0	0
Cost of Started and completed	(72000)	345600	18000	64800	428400
Cost of transferred out					428400
Cost of Closing WIP		3000*4.8=14400	0	750*0.9=675	15075