Maurice Tutor

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Category > Accounting Posted 25 Sep 2017 My Price 9.00

Operation Costing

Operation Costing. Whole Goodness Bakery needs to determine the cost of two work orders for the month of June. Work order 215 is for 1,200 packages of dinner rolls and work order 216 is for 1,400 loaves of multigrain bread. Dinner rolls are mixed and cut into individual rolls before being baked and then packaged. Multigrain loaves are mixed and shaped before being baked, sliced, and packaged. The following information applies to work order 215 and work order 216:

 

Work Order 215

Work Order 216

Quantity (packages)

1,200

1,400

Operations

    

1. Mix

Use

Use

2. Shape loaves

Do not use

Use

3. Cut rolls

Use

Do not use

4. Bake

Use

Use

5. Slice loaves

Do not use

Use

6. Package

Use

Use

 

Selected budget information for June follows:

 

Dinner Rolls

Multigrain Loaves

Total

Packages

4,800

6,500

11,300

Direct material costs

$2,640

$5,850

$Æ’8,490

Budgeted conversion costs for each operation for June follow:

Mixing

$9,040

Shaping

1,625

Cutting

720

Baking

7,345

Slicing

650

Packaging

8,475

1. Using budgeted number of packages as the denominator, calculate the budgeted conversion-cost rates for each operation.

2. Using the information in requirement 1, calculate the budgeted cost of goods manufactured for the two June work orders.

3. Calculate the cost per package of dinner rolls and multigrain loaves for work order 215 and 216.

Answers

Maurice Tutor
(5)
Status NEW Posted 25 Sep 2017 03:09 PM My Price 9.00

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