EXERCISE 5-31

Moulding
Department

1
Direct Materials
Direct Labour
Applied Overhead
Transferred in Cost:
From Moulding Department
From Grinding Department
Total Manufacturing Cost
2 Total Manufacturing Cost
Units completed
Unit Cost

$143 200
13 800
17 500

Grinding
Department
$15 200
33 600
136 000

Finishing
Department
$9 800
22 800
19 000

174 500
$174 500
$410 900
9 000
$45.66

$359 300

359 300
$410 900

PROBLEM 5-53
Millie Company
Assembly Department
Production report for 30 June (FIFO)
UNIT INFORMATION
Units in BWIP
Units started during the period
Total units to account for

24 000
56 000
80 000
Physical
Flow

Unit started and completed

Unit completed from BWIP
Units in EWIP
Total units accounted for

46 000
24 000
10 000
80 000

COST INFORMATION
BWIP
Incurred during the period
Total cost account for
Cost per equivalent unit

46 000
9 600
7 000
62 600

$285 520
638 480
$924 000
$10.1994
Transferred
Out

BWIP:
From prior period
From current period:
(10.1994 X 9600)

Equivalent
Unit

EWIP

Total

$285 520

$285 520

97 914

97 914

469 172

469 172

Unit Started and completed

(10.1994 X 46 000)
EWIP (10.1994 X 7000)
Total cost accounted for

$1 141 760

71 395
$77 000

71 395
$924 002

PROBLEM 5-54
(a) Physical flow schedule
Units in BWIP
Units started during the period
Total units to account for

UNIT INFORMATION
30 000 Units completed
500 000 Units in EWIP
530 000 Total units accounted for

480 000
50 000
530 000

(b) Equivalent unit schedule

EQUIVALENT UNITS
MATERIALS CONVERSION
Units completed
480 000
480 000
Units in EWIP
20 000
20 000
Total equivalent units
500 000
500 000

BWIP
Incurred during the period
Total cost to account for
Cost per equivalent unit

COST INFORMATION
MATERIALS
CONVERSION
$220 000
$50 000
5 800 000
5 542 500
6 020 000
5 592 500
$12.04
$11.185

COST INFORMATION
TRANSFERRED
OUT
Goods transferred out ($23.225 X 480 000)
$11 148 000
Goods in EWIP:
Materials ($12.04 X 20 000)
Conversion ($11.185 X 20 000)
Total cost accounted for
$11 148 000

EWIP

TOTAL
$270 000
11 342 500
11 612 500
$23.225

TOTAL
$11 148 000

$240 800
223 700
$464 500

$240 800
223 700
$11 612 500

EXERCISE 6-20
. Plant-wide rate

Overhead Cost:
Infantry
Special Force

=
=

$152 000
40 000 hours
$3.80/hour

=
=

$76 000
$76 000

OVERHEAD
ACTIVITY
Machining
Setups
Receiving
Packing

. ACTIVITY
DRIVER
ACTIVITY COST
DRIVER QUANTITY
ACTIVITY RATE

. OVERHEAD COST
Machining:
$2 X 20 000
$2 X 20 000
Setups:
$60 X 300
$60 X 100
Receiving:
$18 X 900
$18 X 100
Packing:
$12.50 X 1600
$12.50 X 800
Total Overhead Cost

CONSUMPTION RATIOS

ACTIVITY
DRIVER

Infantry
0.5
0.75
0.9
0.67

Special Force
0.5
0.25
0.1
0.33

Machine Hours
Setups
Receiving Orders
Packing Orders

Machining
Machine Hours
$80 000
40 000
$2

Setups
Setups
$24 000
400
$60

Receiving
Receiving Orders
$18 000
1000
$18

INFANTRY

SPECIAL FORCE

$40 000
$40 000
$18 000
$6 000
$16 200
$1 800
$20 000
$10 000
$94 200

$57 800

Packing
Packing Orders
$30 000
2 400
$12.50

PROBLEM 6-26
Nursing Supervision
Supervisor
Assistant
Secretary
Supervisory Activity
TOTAL
Cost
Occupancy and feeding
Nursing Care
Nursing Supervision
TOTAL

$
80 000
135 000
35 000
170 000
$420 000
$
1 500 000
1 200 000
70 000
$2 770 000

(.75X60 000X3)

(25150X$420 000)

1 Functional-based Approach
Daily rate = Total Overhead Cost
Patient Days
= $2 770 000
10 000 days
= $277/day
2 Activity-based Approach
Activity
Occupancy and Feeding
Nursing Care
Nursing Supervision

Rate ($)
150 ($150000010000days)
24 ($120000050000hours)
1.40 ($7000050000hours)

Activity
Occupancy and Feeding:
($150 x 7000)
($150 x 2000)
($150 x 1000)
Nursing Care:
($24 x 17500)
($24 x 12500)
($24 x 20000)
Nursing Supervision:
($1.40 x 17500)
($1.40 x 12500)
($1.40 x 20000)
Total Cost
Number of Days
Daily Rate

Normal

Caesarean

Complication

$1 050 000
$300 000
$150 000
420 000
300 000
480 000
24 500
17 500
1 494 500
7 000
$213.50

617 500
2 000
$308.75

28 000
658 000
1 000
$658

3 Functional-based Approach
Daily rate = Total Overhead Cost
Patient Days
= $2 770 000 + (2400001250000 x $600000)
10 000 days
= $288.52/day
Activity-based Approach
Activity driver for laudry for every type of patient is needed to calculate each daily rate