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Required:
a.Determine the budgeted factory overhead rate per machine-hour.
c.Prepare the journal entry to dispose of the variance using the write-off to cost of goods sold
approach.
d.Prepare the journal entry to dispose of the variance using the proration approach.
29.Four Seasons Company makes snow blowers. Materials are added at the beginning of the process
and conversion costs are uniformly incurred. At the beginning of September, work in process is 40%
complete and at the end of the month it is 60% complete. Other data for the month include:
Beginning work-in-process inventory 1,600 units
Units started2,000 units
Units placed in finished goods3,200 units
Conversion costs$200,000
Cost of direct materials$260,000
Beginning work-in-process costs:
Materials$154,000
Conversion$ 82,080
Required:
a.Prepare journal entries to record transferring of materials to processing and from processing to
finished goods assuming the weighted-average method.
WIP 630400
CC 200000+82080/3440 = 82
3200*197 = 630400
30. Pet Products Company uses an automated process to manufacture its pet replica products. For
June, the company had the following activities:
Direct materials are placed into production at the beginning of the process and conversion costs are
incurred evenly throughout the process.
Required:
16500/15000 = 1.1
23945/17875 = 1.35
39. Bagley Company has two service departments and two producing departments. Square footage of
space occupied by each department follows:
Custodial services1,000 ft
General administration3,000 ft
Producing department A8,000 ft
Producing department B8,000 ft
20,000 ft
The department costs of Custodial Services are allocated on a basis of square footage of space. If
Custodial Services costs are budgeted at $38,000, the amount of cost allocated to General
Administration under the direct method would be?
Nil as no service department cost is allocated to another service department under this method.
41. What is the cost of the Accounting Department's cost allocated to Department A using the step
method and assuming the Maintenance Department's costs are allocated first?