109. Roswell Refiners restarted operations on September 1 after a 3 month shutdown. There
were no beginning inventories. The following operations data are available for September and the
one product the company refines:
All production at Roswell is sold immediately.
Required:
(a) Compute cost of goods sold for September.
(b) What is the value of the work–in-process inventory on September 30?
110. Loin Cabinetry produces two models of home shelving, the Basic and the Mega. Data on
operations and costs for November are:
Required: Compute the predetermined overhead rate, assuming Loin Cabinetry uses:
(a) Direct labor hours to allocate overhead costs.
(b) Direct labor costs to allocate overhead costs.
(c) Machine hours to allocate overhead costs.
(d) Compute the unit cost for each model using direct labor costs to allocate overhead.
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111. Loin Cabinetry produces two models of home shelving, the Basic and the Mega. Data on
operations and costs for November are:
Required: Compute the unit cost for each model, assuming Loin Cabinetry uses:
(a) Direct labor hours to allocate overhead costs.
(b) Direct labor costs to allocate overhead costs.
(c) Machine hours to allocate overhead costs.
6-84
112. Lombard Carts produces two models of push carts, the Standard and the Deluxe. Data on
operations and costs for the month are:
Required: Compute the total cost for each model, assuming Lombard Carts uses:
(a) Direct labor hours to allocate overhead costs.
(b) Direct labor costs to allocate overhead costs.
(c) Machine hours to allocate overhead costs.
113. Wisigan Instruments manufactures two models of calculators. The research model is the
RES-1 and the student model is the AS-2. Both models are assembled in the same plant and
require the same assembling operations. The difference is in the cost of the internal components.
The following data are available for February.
Wisigan uses operations costing and assigns conversion costs on the number of units assembled.
Required: Compute the cost of the RES-1 and AS-2 models for February.
114. Owen Furniture manufactures three models of tables: oak, cherry, and walnut. All models
are assembled in the same plant and require the same assembling operations. The difference is in
the cost of the wood. The following data are available for July.
Owen uses operations costing and assigns conversion costs on the number of tables built.
Required: Compute the cost of the each of the three models for July.
115. Determine the missing values from the table below:
116. Determine the missing values from the table below:
117. Scranton produces a cleaning solvent. Production of 200,000 gallons was started in
February, 170,000 gallons were completed. Material costs were $138,220 for the month while
conversion costs were $116,380. There was no beginning work–in-process; the ending work-in–
process was 60% complete.
Required:
(a) What is the total cost of the product that was completed and transferred to finished goods?
(b) What is the value of the ending work-in-process?
118. Pittsville produces a paint solvent. Production of 400,000 pounds was started in February,
350,000 pounds were completed. Material costs were $260,130 for the month while conversion
costs were $312,620. There was no beginning work–in-process; the ending work–in-process was
90% complete.
Required:
(a) What is the total cost of the product that was completed and transferred to finished goods?
(b) What is the value of the ending work-in-process?
119. Withee produces a quick setting concrete powder. Production of 15,000 tons was started
in September, 14,000 tons were completed. Material costs were $394,670 for the month while
conversion costs were $201,730. There was no beginning work–in-process; the ending work-in–
process was 20% complete.
Required:
(a) What is the total cost of the product that was completed and transferred to finished goods?
(b) What is the value of the ending work-in-process?
120. Lein Office Products produces three models of commercial shelving, the Basic, the
Advanced and the Superior. Data on operations and costs for the month are:
Required: Compute the predetermined overhead rate, assuming Lein Office Products uses:
(a) Direct labor hours to allocate overhead costs.
(b) Direct labor costs to allocate overhead costs.
(c) Machine hours to allocate overhead costs.
(d) Compute the unit cost for each model using direct labor costs to allocate overhead.
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121. Lein Office Products produces three models of commercial shelving, the Basic, the
Advanced and the Superior. Data on operations and costs for the month are:
Required: Compute the unit cost for each model, assuming Lein Office Products uses:
(a) Direct labor hours to allocate overhead costs.
(b) Direct labor costs to allocate overhead costs.
(c) Machine hours to allocate overhead costs.
6-94
122. Cameron Carts produces three models of push carts, the Economy, the Standard, and the
Deluxe. Data on operations and costs for the month are:
Required: Compute the total cost for each model, assuming Cameron Carts uses:
(a) Direct labor hours to allocate overhead costs.
(b) Direct labor costs to allocate overhead costs.
(c) Machine hours to allocate overhead costs.
6-95
123. Target Products uses a two-stage allocation method to assign costs to its products. The
following information has been provided for March:
Required:
(a) Allocate the manufacturing overhead to two cost pools: machine-related and labor-related.
(b) Compute the predetermined overhead rate for the two pools, using machine hours and direct
labor hours as the bases.
(c) Compute the total costs of production for each of the two products.
6-97
124. Acme Industries uses a two-stage allocation method to assign costs to its products. The
following information has been provided for the month:
Required:
(a) Allocate the manufacturing overhead to two cost pools: machine-related and labor-related.
(b) Compute the predetermined overhead rate for the two pools, using machine hours and direct
labor hours as the bases.
(c) Compute the total costs of production for each of the three products.
6-99
125. Acme Industries uses a two-stage allocation method to assign costs to its products. The
following information has been provided for the month:
Required:
(a) Allocate the manufacturing overhead to two cost pools: machine-related and labor-related.
(b) Compute the predetermined overhead rate for the two pools, using machine hours and direct
labor cost as the bases.
(c) Compute the unit cost of production for each of the three products.
