Using a spreadsheet and based on the information provided in the next section, c

Question

Using a spreadsheet and based on the information provided in the next section, complete the following requirements: Determine the started and completed units by using the following formula: Started- Ending Completed and Transferred Out- Beginning 1. 2 Prepare an equivalent units schedule. The schedule should follow the format below; you add additional information if you would like. (Remember that the schedule is for units of trucks not plastic and wheels.) Whole Units (Actual) Direct Materials Direct Materials Conversion Equivalent Units Plastic Wheels Xxx xxX Costs Beginning Start/Completed Completed/Transferred Out xxx Ending Total Xxx 3. Calculate the total cost and the cost per equivalent unit for the direct materials plastic 4. Calculate the total cost and the cost per equivalent unit for the direct materials wheels. 5. Calculate the predetermined overhead rate 6. Determine the total conversion cost by using the predetermined rate and the direct labor rate Then determine the conversion cost per truck by taking the number out four decimals and then rounding to the nearest cent. 7. Determine the unit cost per truck to the nearest cent 8. Prepare a Cost of Production report. This report should show all costs transferred into Work-in Process and the costs transferred to Finished Goods by using the Equivalent Units Schedule. This process uses FIFO costing Determine the amounts for the following. Show calculations for credit. 9. al Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufacturing Overhead e) Show and calculate an Income Statement f) Gross Profit Bl Net Income 10. Prepare the necessary Journal Entries related to the manufacturing cycle for this accounting period.

Explanation / Answer

Solution 1:

Started and completed units:

Started - Ending = Completed and transferred out - Beginning

5200 - 300 = 4900 - 0

Hence started and completed units = 4900 units

Solution 2:

Solution 3:

Total cost of direct material plastic consumed = (2800 - 200) * $2.50 = $6,500

Cost per equivalant unit of direct material plastic = Toal consumption / Equivalant unit = $6,500 / 5200 = $1.25 per unit

Solution 4:

Total wheel consumed = 4900*4 = 19600 wheels

Total cost of direct material Wheels consumed = 19600 * $0.10 = $1,960

Cost per equivalant unit of direct material wheel = Toal consumption / Equivalant unit = $1,960 / 4900 = $0.40 per unit

solution 5:

Predeteremined overhead rate = Estimated overhead / Estimated direct labor cost = $1,300 / $2,000 = 65% of direct labor cost.

Note: I have answered more than required parts as per chegg policy, kindly post separate question for answer of remaining parts.

Computation of Equivalent unit (FIFO) Particulars Physical units Direct material - Plastic Direct material -Wheels Conversion Units to be accounted for: Beginning WIP Inventory 0 Units started this period 5200 Total unit to be accounted for 5200 Units Accounted for: Units completed and transferred out From beginning inventory 0 0 0 0 Started and completed currently 4900 4900 4900 4900 Units in ending WIP
Plastic - 100%
Wheels - 0%
Conversion - 55% 300 300 0 165 Total units accounted for 5200 5200 4900 5065

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