Assignment: An Example Of Oriented Fixed Cost?

860 Words 4 Pages
Register to read the introduction… An example of committed fixed cost is: B. A long-term equipment lease. Committed fixed costs are fixed costs that are not easy to alter and that have connection with the investment in facilities, materials, and the primary business structure of the organization.

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Beca Company’s schedule of goods manufactured

Direct materials:Raw materials inventory beginning……………………………………………………………..Raw materials purchases……………………………………… | $9,000 124,000 | | Total raw materials available………………………………..Raw materials inventory, ending…………………………..Raw material used in production………………………….Indirect material included in manufacturing overhead costs incurred ($7,000 + $30,000) | $133,000 11,000$122,000 37,000 | $85,000 | Direct labor…………………………………………………………..Manufacturing overhead applied………………………… | …………….……………. | 80,000 $183,500 | Total manufacturing Cost……………………………………..Add: Beginning work in process …………………………… | …………….……………. | $348,500 6,000 | Deduct: Ending work in process inventory……………………………………… | ……………. | $354,500 21,000 | Cost of goods manufactured………… | ……………. | $333,500 |

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Benerjee Inc’s process costing system (weighted-average)

| Materials | Conversion | Units Transferred to next department Ending work in process:Materials: 500 units x 70%Conversion: 500 units x 80% | 17,700 350 | 17,700 400 | Equivalent units of production | 18,068 | 18,100 | Cost of beginning work in processCost added during the monthTotal costEquivalent units of productionCost per equivalent unit | $756116,569$117,32518,068$6.49 | $1,508675,432$676,94018,100$37.4 | Ending work in process:Equivalent units of productionCost per equivalent unitsCost of ending work in process | 350$6.49$2,272 | 400$37.4$14,960 Total = $17,232 | Unit completed and transferred outCost per equivalent unit | 17,700$6.49 | 17,700$37.4 | Cost of units transferred out | $114,873 | $661,980 Total = $776.853

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