Question 1
The Aleutian Company produces two products-Rings and Dings; they are manufactured in two departments-Fabrication and Assembly. Data for the products and departments are as follows. Rings: 1,000 units; 4 labor hours per unit; and 6 machine hours per unit. Dings: 2,000 units; 3 labor hours per unit; and 9 machine hours per unit. All of the machine hours take place in the Fabrication Department, which has an estimated total overhead of $90,000. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $105,000. The Aleutian Company uses departmental overhead rates. The Fabrication Department uses machine hours for an allocation base, and the Assembly Department uses labor hours. What is the overhead cost per unit for Rings?
· a. $65.25
· b. $23.25
· c. $44.10
· d. $64.50
Question 2
Department G had 3,600 units: 40% were completed at the beginning of the period; 12,000 units were completed during the period; and 2,000 units were 20% completed at the end of the period. The following manufacturing costs were debited to the departmental work-in-process account during the period: work in process at beginning of period at $60,000; direct materials (10,400 units at $9.8365) at $102,300; direct labor at $79,800; and factory overhead at $25,200. Assuming that all direct materials are placed in process at the beginning of production, and that the first-in, first-out method of inventory costing is used, what are the equivalent units for materials and conversion costs, respectively?
· a. 14,000 and 12,160
· b. 10,400 and 10,960
· c. 14,000 and 13,600
· d. 10,400 and 10,240