I. Chapter 18 Question-Clark Corporation had the following manufacturing cost information March 3 $279,000 240,000 $185,000 Direct Labor Materials Purchased in March Factory Overhead Costs in March$150,000 MaterialsMarch $316,000 Work in Process $215,000 Finished Goods 170,000 Show Calculations and Results for the Following 1. Direct Materials Used: 2. Total Manufacturing Costs incurred: 3. Total Manufacturing Costs: 4 Cost of Goods Manufactured: 5. Cost of Goods Sold: 0,000 0,000 it. Interpret the graph. Units are on X axis, dollars on Y 1. Identify line a 2. Identify line b 3. Identify line c 4. What is the breakeven point in units? 5. What is the breakeven point in dollars? Note: items 4 and 5 are are integers lll. Job Order Costing: El Cid Construction estimates factory overhead at the rate of 55% of direct labor cost. Calculate the cost of each job. Job 2 Job 3 Job 1 DM) 5,000 4,800 DMI 3. DL FO 2,800 2,000 FO Total FO Total Total The actual overhead was $4,900 Was the factory overhead over-or underapplied? OVER And what was the amount over- or underapplied? $ UNDER GREAT CAESAR\'S DRESSING-Average Cost Method The Mixing Department at Great Caesar\'s had beginning Work in Process on July 1 of 5,900 gallons. The company started 64,000 gallons into production during the month. During the month, the company completed and transferred 66,000 gallons to the Bottling Department At the end of the month there were 3,900 gallons in Working Process that were 45 percent complete. Unit Data Beginning Work in Process Units Started Units to Account For EU Completed and Transferred Units in Ending WIP Units Accounted For Total Costs in the department were $89,105 What was the cost per equivalent unit? $ 100% (5 decimal places)
I.
Working:
II.
1. Line a is the Sales Revenue Line
2. Line b is the Total Cost Line
3.Line c is the Fixed Cost Line
4.Break even point in units 2,000 units
5. Break even point in dollars $30,000
The horizontal axis (x-axis) measures the activity in units.
The vertical axis (y-axis) measures the activity in dollars.
a is the sales line as sales varies direclty with the volume, and is higher than the total cost.
b is the total cost line, as the total cost will be inclusive of variable and fixed costs, and there will be a minimum cost for the first item which is the fixed cost.
c is the fixed cost line , as there will be a minimum cost of performing an activity, which will be constant and does not vary with the level of activity.
Break even point is the point at which the sales is equal to total cost, which the point of intersection of the sales and total cost lines.
Break even sales in units corresponds to the the break even point which meets the horizontal axis.
Break even sales in dollars corresponds to the the break even point which meets the vertical axis.
III.
The overhead was UNDER applied.
The amount of under-applied overhead $665
Working:
Great Ceaser\'s Dressing
| 1 | Direct material used | 639000 |
| 2 | Total manufacturing cost incurred in March | 1379000 |
| 3 | Cost of goods manufactured | 1354000 |
| 4 | Cost of goods sold | 1339000 |
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