Class Notes (811,457)
United States (314,580)
BUS 202 (26)
Nick Ross (26)
Lecture 7

# BUS 202 Lecture 7: February 6th Premium

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School
University of San Francisco
Department
Course
BUS 202
Professor
Nick Ross
Semester
Spring

Description
February 6th Monday, February 6, 2017 9:04 AM • Ausitn: ○ Estimated MOH = \$270,000 ○ Estimated Labor hours = 180,000 ○ Actual MOH= \$192,000 ○ Actual DLH = 132,000 ○ Wage = \$9.00 ○ Estimated allocation base = DLH § What is the POH: □ \$270,000/ 180,000 = \$1.5 § Job: □ 85lb of cement \$2.50 per lb □ \$216 DLH cost □ What is the cost of the Job: ® Direct material cost: ◊ 85 * \$2.5 = \$212.5 ® MOH: ◊ (\$216 / 9) * \$1.5 = \$36.00 ® DL ◊ \$216 ® Total: ◊ \$216 + \$36.00 + \$212.50 = \$464.5 □ How much MOH was applied during the year: ® \$1.5 * 132,000 = \$198,000.00 ® Over or under applied: ◊ Over applied by (\$198,000 - \$192,000 = \$6,000.00 ) • Under process costing: ○ Equivalent units: § % complete * # of units ○ Equivalent units of production: § Units transferred + Equivalent units in end WIP ○ Cost per eq unit: § (Cost added + Cost Beginning WIP) / (EQ units of productions) ○ Ex: § Helix Helix Units Materials Conversion February 6th Monday, February 6, 2017 9:04 AM • Ausitn: ○ Estimated MOH = \$270,000 ○ Estimated Labor hours = 180,000 ○ Actual MOH= \$192,000 ○ Actual DLH = 132,000 ○ Wage = \$9.00 ○ Estimated allocation base = DLH § What is the POH: □ \$270,000/ 180,000 = \$1.5 § Job: □ 85lb of cement \$2.50 per lb □ \$216 DLH cost □ What is the cost of the Job: ® Direct material cost: ◊ 85 * \$2.5 = \$212.5 ® MOH: ◊ (\$216 / 9) * \$1.5 = \$36.00 ® DL ◊ \$216 ® Total: ◊ \$216 + \$36.00 + \$212.50 = \$464.5 □ How much MOH was applied during the year: ® \$1.5 * 132,000 = \$198,000.00 ® Over or under applied: ◊ Over applied by (\$198,000 - \$192,000 = \$6,000.00 ) • Under process costing: ○ Equivalent units: § % complete * # of units ○ Equivalent units of production: § Units transferred + Equivalent units in end WIP ○ Cost per eq unit: § (Cost added + Cost Beginning WIP) / (EQ units of productions) ○ Ex: § Helix Helix Units Materials Conversion ○ Cost per eq unit: § (Cost added + Cost Beginning WIP) / (EQ units of productions) ○ Ex: § Helix Helix Units Materials Conversion = DL + MOH 5/1 Beg WIP 5,000 100% 40% 5/31 End WIP 10,000 100% 30% Cost of beg WIP \$1,500 4,000 § Units started 180,000 Units transferred 175,000 : beg + started - end = transferred Cost added during 54,000 352,000 the month § Compute: □ Cost of units transferred: □ Cost of End WIP Compute the Equivalent Materials Conversion Units of production: § UNITS completed during the 175,000 + (10,000 * 100%) = 175,000 + (30% * 10,000) = month 185,000 178,000 -------- Materials Conversion § Cost per eq ((\$1,500 + \$ 54,000) / 185,000) = (\$4,000 + \$352,000)/ 178, 000 = unit \$0.30 \$2.00 § Cost of the units transferred: □ 175,000 * (\$.30 + \$2.00) = \$402,500.0 § Cost of end WIP: Materials Conversion □ \$0.30 * 10,000 * 100% = \$3,000.0\$2.00 * 10,000 * 30% = \$6,000.00 • Computer covers ○ Covers -> painti > sewing and finish- done JAN S&F Units Materials Conversion 1/1 Beg WIP 1,200 80% 75% 1/31 End WIP 1,000 40% 70% ○ Units transferre4,500 100% 100% ○ Cost per eq unit: § (Cost added + Cost Beginning WIP) / (EQ units of productions) ○ Ex: § Helix Helix Units Materials Conversion = DL + MOH 5/1 Beg WIP 5,000 100% 40% 5/31 End WIP 10,000 100% 30% Cost of beg WIP \$1,500 4,000 § Units started 180,000 Units transferred 175,000 : beg + started - end = transferred Cost added during 54,000 352,000 the month § Compute: □ Cost of units transferred: □ Cost of End WIP Compute the Equivalent Materials Conversion Units of production: § UNITS completed during the 175,000 + (10,000 * 100%) = 175,000 + (30% * 10,000) = month 185,000 178,000 -------- Materials Conversion § Cost per eq ((\$1,500 + \$ 54,000) / 185,000) = (\$4,000 + \$352,000)/ 178, 000 = unit \$0.30 \$2.00 § Cost of the units transferred: □ 175,000 * (\$.30 + \$2.00) = \$402,500.0 § Cost of end WIP: Materials Conversion □ \$0.30 * 10,000 * 100% = \$3,000.0\$2.00 * 10,000 * 30% = \$6,000.00 • Computer covers ○ Covers -> painti > sewing and finish- done JAN S&F Units Materials Conversion 1/1 Beg WIP 1,200 80% 75% 1/31 End WIP 1,000 40% 70% ○ Units transferre4,500 100% 100% JAN S&F Units Materials Conversion 1/1 Beg WIP 1,200 80% 75% 1/31 End WIP 1,000 40% 70% ○ Units transferre4,500 100% 100% Units started (4500 +1000 -1,200 ) = 4300 Cost added \$7,000 \$34,400 Cost beg WIP \$1820 \$4,600 ○ Compute: § Cost of units transferred: § Cost of End WIP ---- Materials Conversion] ○ Eq Units of production 4,500 + (40% * 1000) = 494,500 + (70% * 1000)
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