1 During May, Thomson Company had the
following indirect costs: Indirect Materials, $ 24.500; Indirect Labor, $
64.500; Utility costs, $ 5.800 and $ 45.200 Depreciation Factory. Write in the
journal entry to record the indirect costs incurred during May.
2. The cost of direct materials
transferred to the Department of Atlas Rolled Steel Company is $ 4,654,800. The
cost of conversion for the period Winding department is $ 1,091,363. The total
equivalent units for direct materials and conversion are 86,200 tonnes and
83.951 tonnes respectively. Determine the cost per equivalent unit of direct
materials and conversion.
50 per unit. Variable costs are $ 40 per unit and fixed reserves are $ 20,000.
determine: a. The reason for unit contribution margin and b. Operating Income
4. Fixed production costs are $ 30 per
unit and variable production costs are $55 per unit. The production was 144,000
units. determine: a. If operating income is variable costing less than or
greater than the utility of operation and absorption costing b. The difference
in operating profit with variable costing and absorption costing.
Book – Financial and Managerial Accounting by Warren Reeve Duchac 10E
