Cost Accounting Homework

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1 ACCT 235 – Cost Accounting September 7, 2013 2 6 – 42. Operations Costing Vermont Instruments manufactures two models of calculators. The finance model is the Fin-X and the scientific model is the Sci-X. Both models are assembled in the same plant and require the same assembling operations. The difference between the models is in the cost of the parts. The following data are available for June. Fin-X 10,000 $20 Sci-X 40,000 $25 Total 50,000 Number of units Parts cost per unit Other costs: Direct labor Indirect materials Overhead Total $62,000 17,500 70,500 150,000 Vermont Instruments uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost per unit of the Fin-X and Sci-X models for June. Fin-X Total operation cost Total number of units Cost per unit Allocation of operation cost Units Operation cost (@ $3 per unit) Materials cost Total Cost Number of units Unit Cost  10,000 Sci-X 40,000 Total $150,000 50,000 $3 10,000 $30,000 $200,000 (10,000 * 20) $230,000 10,000 $23 40,000 $120,000 $1,000,000 (40,000 *25) $1,120,000 40,000 $28 50,000 $150,000 The cost of Fin-X per unit is $23. The cost per unit for Sci-X is $28. 3 7-22 Predetermined Overhead Rates Tappan, Inc. manufactures one product and accounts for costs using a job cost system. You have obtained the following information from the corporation’s books and records for the year ended December 31, Year 1: o Total manufacturing cost during the year was $3,000,000 based on actual direct material, actual direct labor, and applied manufacturing overhead. o Manufacturing overhead was applied to work in process at 75 percent of direct labor dollars. Applied manufacturing overhead for the year was 25 percent of the total manufacturing cost during the year. Compute actual direct material used, actual direct labor, and

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