Barn Company uses a process costing system. During August the mixing department

Barn Company uses a process costing system. During August the mixing department

admin / July 3, 2018

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Barn Company uses a process costing system. During August the mixing department transferred out 65000 units. The August 31 work in process inventory
balance in the mixing department consisted of 22000 equivalent units of material and 20150 equivalent units of labor and overhead. The cost per
equivalent unit was $5.50 for materials and $5.00 for labor and overhead. How much was the total balance in the work in process inventory account on August
31?
Answer
$463750 $192500 $221750 $271250

Nations Shipping determined the rate to apply overhead based on direct labor hours would be $8.40 and based on machine hours would be $5.20. Job 43D used
$12.40 of direct materials 0.46 machine hours and 18 minutes of direct labor at a cost of $13 per hour. How much is the cost of job 43D if Nations
Shipping applies overhead based on machine hours?
Answer
$2.52 $18.69 $248.92 $8.82 Peak Manufacturing produces snow blowers. The selling price per snow blower is $100. Costs
involved in production are: $20 12 10 $148500
In addition the company has fixed selling and administrative costs of $150000 per year. During the year Peak produces 45000
snow blowers and sells 30000 snow blowers. Ignoring taxes how much will full costing profit differ from variable costing
profit? Answer $148500 $94500 $74250 $49500

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