Thomas Carapaica

ID: 100832

6-26. Basic Product Costing

Compute the cost per gallon of liquid cleaner produced in June.
Materials
Labor
Manufacturing Overhead
Total Cost
Gallons Produced
Cost Per Gallon

714,000
$
61,200
$ 244,800
$ 1,020,000
850,00
0
$
1.20

6-27. Basic Product Costing

Compute the cost per liter of beverage produced in October.
Materials
Labor
Manufacturing Overhead
Total Cost
Liters Beverage Produced
Cost Per Gallon

$
$
$
$
$

650,000
110,000
2,940,000
3,700,000
10,000,000
0.37

6-31. Process Costing

The production supervisor estimates that the ending work in process is 80 percent complete.
Compute the cost of paint transferred to finished goods and the amount in work-in-process
ending inventory as of January 31.
300,000 gallons 240,000 gallons = 60,000 gallons
60,000 gallons x 80% = 48,000 gallons
Work-in-process ending inventory for January 31 is 48,000
240,000 gallons + 48,000 gallons = 288,000 gallons
Materials ($411,000) + Conversion Costs ($525,000) = Total Cost ($936,000)

Thomas Carapaica

ID: 100832

$936,000 / 288,000 gallons = $3.25

The cost of paint transferred goods is $780,000
$3.25 x 240,000 gallons = $780,000

6-32. Process Costing

The production supervisor estimates that the ending work in process is 70 percent complete on
May 31. Compute the cost of oil shipped in the pipeline and the amount in work-in-process
ending inventory as of May 31.

Transferred, to
Finished Goods

Work-inProcess, January
31

291000000

270,000,000
100%
270,000,000

30,000,000
70%
21000000

$
5,000,000,000
$
6,640,000,000
$
11,640,000,000
40
$
11,640,000,000

$
10,800,000,000

$
840,000,000

Total
Production:
Barrels
Percentage
Equivalent Barrels
Costs
Materials
Conversion Costs
Total Cost Incurred
Cost Per Equivalent Barrel
Cost Assigned to Product

300,000,000

6-36. Predetermined Overhead Rates

Refer to the data in Exercise 6-34. Compute the predetermined overhead rate assuming that Tiger
Furnishing uses machine-hours to allocate overhead costs.
Predetermined Overhead Rate = $174,100 / 6,000 = $29.02 per machine hour