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Business, 07.04.2020 23:31 dxpebetty64
Howorth Dental Products is a London-based producer of a patented anti-microbial dental floss. All raw material is introduced at the beginning of the production process, but considerable processing time is needed to create the anti-microbial qualities of the specially designed floss. Howorth measures output in meters of floss and applies the weighted-average process costing method. The following information is available for a recent period:
Beginning work in process inventory:
141,000 meters at a cost of £46,100 for direct materials, £25,000 for direct labor, and £25,000 for factory overhead. The conversion process was 60% complete.
Units started into production: 261,000 meters
Units completed and transferred to finished goods: 383,000 meters
Ending work in process inventory: 19,000 meters, 35% complete
Additional costs incurred during the period:
Direct materials, £85,800
Direct labor, £98,300
Factory overhead, £98,700
Prepare a cost of production report for Howorth.
A.
Equivalent units of direct material
402,000
Equivalent units of direct labor
389,650
Equivalent units of overhead
389,650
Costs per equivalent unit
$0.962
Transferred to Finished Goods
$368,446
Total Ending Work in Process
$10,449
Total Cost Allocation
$378,895
B.
Equivalent units of direct material
413,000
Equivalent units of direct labor
396,350
Equivalent units of overhead
392,350
Costs per equivalent unit
$0.9759
Transferred to Finished Goods
$46,057
Total Ending Work in Process
$10,343
Total Cost Allocation
$478,400
C.
Equivalent units of direct material
401,000
Equivalent units of direct labor
378,350
Equivalent units of overhead
382,350
Costs per equivalent unit
$0.9439
Transferred to Finished Goods
$367,657
Total Ending Work in Process
$10,123
Total Cost Allocation
$558,160
D.
Equivalent units of direct material
425,000
Equivalent units of direct labor
395,350
Equivalent units of overhead
398,350
Costs per equivalent unit
$0.9539
Transferred to Finished Goods
$367,647
Total Ending Work in Process
$220,323
Total Cost Allocation
$587,170
E.
Equivalent units of direct material
400,000
Equivalent units of direct labor
364,350
Equivalent units of overhead
322,350
Costs per equivalent unit
$0.9439
Transferred to Finished Goods
$347,977
Total Ending Work in Process
$331,763
Total Cost Allocation
$678,430
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Answers: 2
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