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departments. The company specializes in overnight service and has the
largest drug store chain as its primary customer. Currently, direct labor,
direct materials, and overhead are accumulated by department. The cost
accumulation system that best describes the system that Smile Labs is
using is:
Question 3.
Question :
(TCO 3) Kerner Manufacturing uses a
process cost system to manufacture laptop computers. The following
information summarizes operations relating to laptop computer model
#KJK20 during the quarter ending March 31:
Units
Direct Labor
Work-in-process inventory, January 1
100
$50,000
Started during the quarter
500
Completed during the quarter
400
Work-in-process inventory, March 31
200
Costs added during the quarter
$720,000
Beginning work-in-process inventory was 50% complete for direct labor
costs. Ending work-in-process inventory was 75% complete for direct
labor costs. What is the equivalent unit of production using the
weighted-average unit cost inventory valuation method?
Question 4.
Question :
(TCO 2) Sweet Co. uses budgeted
overhead rates to apply overhead to individual jobs. They use a system
based on direct labor hours. Last year, the company made the following
estimates for this year.
Direct labor costs
Factory overhead costs
Direct Labor Hours
Machine Hours
$48,000,000
$6,400,000
80,000
110,000
(a) What is the budgeted overhead rate for the company?