Instructions Linsenmeyer Company produces a common machine component for industr
ID: 2394989 • Letter: I
Question
Instructions Linsenmeyer Company produces a common machine component for industrial equipment in three departments: molding, grinding, and finishing. The following data are available for September: Molding Grinding Finishing Department Department Department Direct materials $144,100 $16,100 10,500 22,800 18,900 Direct labor 14,600 34,400 Applied overhead 17,400 36,000 During September, 8,900 components were completed. There is no beginning or ending WIP in any department. Required: 1. Prepare a schedule showing, for each department, the cost of direct materials, direct labor, applied overhead, product transferred in from a prior department, and total manufacturing cost. 2. Calculate the unit cost. (Round the unit cost to two decimal places)Explanation / Answer
1 Molding Department Grinding Department Fishing Department Direct Materials $ 1,44,100 $ 16,100 $ 10,500 Direct Labour $ 14,600 $ 34,400 $ 22,800 Applied Overhead $ 17,400 $ 1,36,000 $ 18,900 Costs Added $ 1,76,100 $ 1,86,500 $ 52,200 Costs transferred in $ - $ 1,76,100 $ 3,62,600 Costs transferred out $ 1,76,100 $ 3,62,600 $ 4,14,800 2 Calculation of unit Cost = (Total Cost transferred Out - Total Cost transferred In) / No. Of Components [($9,53,500 - 5,38,700) / 8,900] = $ 46.61 Calculation of unit Cost = $ 46.61 Costs transferred out Costs transferred in Molding Department $ 1,76,100 $ - Grinding Department $ 3,62,600 $ 1,76,100 Fishing Department $ 4,14,800 $ 3,62,600 Total $ 9,53,500 $ 5,38,700