#1 To calculate the total manufacturing costs for the year, we need to add the direct materials cost and the manufacturing overhead cost.
Direct materials cost = $300,000
Manufacturing overhead rate = 70%
Manufacturing overhead cost = Direct materials cost * Manufacturing overhead rate
Manufacturing overhead cost = $300,000 * 70% = $210,000
Total manufacturing costs = Direct materials cost + Manufacturing overhead cost
Total manufacturing costs = $300,000 + $210,000 = $510,000
Therefore, the total manufacturing costs for the year are $510,000.
#2 To calculate the equivalent units of production for the wrapping department, we need to consider the units completed and transferred out and the units in ending work in process.
Units completed and transferred out = 10,000 units
Units in ending work in process = 600 units (75% complete)
Equivalent units of production = Units completed and transferred out + (Units in ending work in process * % completion)
Equivalent units of production = 10,000 units + (600 units * 75%)
Equivalent units of production = 10,000 units + (600 units * 0.75)
Equivalent units of production = 10,000 units + 450 units
Equivalent units of production = 10,450 units
Therefore, the equivalent units of production for the wrapping department are 10,450 units.
#3 To calculate the equivalent units of production for conversion costs in January, we need to consider the units started and the units in ending work in process.
Units started in January = 10,000 units
Units in ending work in process = 4,000 units (40% complete)
Equivalent units of production = Units started in January + (Units in ending work in process * % completion)
Equivalent units of production = 10,000 units + (4,000 units * 40%)
Equivalent units of production = 10,000 units + (4,000 units * 0.40)
Equivalent units of production = 10,000 units + 1,600 units
Equivalent units of production = 11,600 units
Therefore, the equivalent units of production for conversion costs in January are 11,600 units.
#4 a) To calculate the total amount of manufacturing cost assigned to the units completed and transferred out in September using the weighted average method, we need to consider the units started, units completed, and the amount of manufacturing costs incurred.
Materials cost = $200,000
Conversion costs = $214,200
Units started in September = 100,000 units
Units in ending work in process = 8,000 units (40% complete)
Total manufacturing cost = Materials cost + Conversion costs
Total manufacturing cost = $200,000 + $214,200
Total manufacturing cost = $414,200
Total units to be accounted for = Units that were in beginning work in process + Units started in September
Total units to be accounted for = 0 units + 100,000 units
Total units to be accounted for = 100,000 units
Equivalent units of production = Units completed and transferred out + (Units in ending work in process * % completion)
Equivalent units of production = 100,000 units + (8,000 units * 40%)
Equivalent units of production = 100,000 units + (8,000 units * 0.40)
Equivalent units of production = 100,000 units + 3,200 units
Equivalent units of production = 103,200 units
Average cost per equivalent unit = Total manufacturing cost / Equivalent units of production
Average cost per equivalent unit = $414,200 / 103,200 units
Average cost per equivalent unit = $4.01 (rounded to two decimal places)
Total manufacturing cost assigned to units completed and transferred out = Average cost per equivalent unit * Units completed and transferred out
Total manufacturing cost assigned to units completed and transferred out = $4.01 * 100,000 units
Total manufacturing cost assigned to units completed and transferred out = $401,000
Therefore, the total amount of manufacturing cost assigned to the units completed and transferred out in September is $401,000.
b) To calculate the total amount of manufacturing costs assigned to the 8,000 units in the ending work in process in September using the weighted average method, we can use the same average cost per equivalent unit calculated in part a).
Total manufacturing cost assigned to the 8,000 units in the ending work in process = Average cost per equivalent unit * Units in ending work in process
Total manufacturing cost assigned to the 8,000 units in the ending work in process = $4.01 * 8,000 units
Total manufacturing cost assigned to the 8,000 units in the ending work in process = $32,080
Therefore, the total amount of manufacturing costs assigned to the 8,000 units in the ending work in process in September is $32,080.