Using a spreadsheet and based on the information provided in the next section, complete the following
requirements:
1. Determine the predetermined overhead rate.
2. Determine the total number of plastic airplanes to account for.
3. Prepare an equivalent units schedule. The schedule should follow the format below; you may
add additional information if you would like.
Whole Units
(Actual)
Equivalent Units
Direct Materials
Direct Materials
Plastic
Wheels
XXX
XXX
Conversion
Costs
XXX
Beginning
XXX
Start/Completed
XXX
XXX
XXX
XXX
Completed/Transferred Out
XXX
XXX
XXX
XXX
Ending
XXX
XXX
XXX
XXX
4.
5.
6.
7.
Determine the total costs for the plastic and the unit plastic cost for the airplanes.
Determine the total conversion cost and the conversion cost per airplane.
Determine the total equivalent cost per airplane.
Prepare a Cost of Production report. This report should show all costs transferred into Work-inProcess and the costs transferred to Finished Goods. This process uses FIFO costing.
8. Determine the amounts for the following. Show calculations for credit.
a)
b)
c)
d)
e)
f)
g)
Ending Work-in-Process Inventory in Units AND Dollars
Ending Finished Goods Inventory in Units AND Dollars
Cost of Goods Sold
Over/Under Applied Manufacturing Overhead
Gross Margin
Tax Amount
Net Income
