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Bench Manufacturing Company uses a job order cost accounting system. On April 1, the company has Work in Process Inventory of $15,000 representing Job No. 323 (materials $8,000, direct labor $5,000, and applied overhead based on 40% direct labor cost ). During April, a summary of source documents reveals the following:

Purchase Order Material A $10,000

Material B 10,000

Materials Requisitions Labor Time Tickets

Job No. 323 # 5 Mat A $ 2,500 JO 323 $ 3,000

324 # 6 Mat B 3,000 324 4,000

325 # 7 Mat A 3,500 325 3,000

326 # 8 Mat B 2,500 326 1,500

General use: Indirect Materials $900 Indirect Labor $1,600

Job No. 323 and 324 are completed but only Job 324 was delivered.

From the above information, prepare cost sheets and answer the following:

1. the total cost of goods manufactured amount to _______.
2. The cost of goods sold amount to ______.
3. If material A has a beginning balance of $3,000, the total cost of raw materials inventory end for Mat A is ______.
4. Material B has no beginning blance, the raw materials invty end for Mat B is __________.

   At the end of the month, Cutting has still 200 rag dolls in process as it is only 50% complete while 800 were transferred to the next dept. Sewing Department has still 100 in process at the end of the month which is 60% done.

   From the above information, complete the cost flow and answer the following:

   In the cutting department, compute for

5. The equivalent units _________.
6. The cost per unit _________.
7. Cost transferred to the Sewing Department ___________.
8. Work in process end in the Cuttng Department ___________. In the sewing department, compute for :
9. The equivalent units in the Sewing Deparment is _________.
10. The unit cost added in this department is __________.

Best Manufacturing Company uses the process cost system to cost its product, rag dolls, which it plans to mass produce at a rate of 1,000 dolls per month. It applies overhead at a rate of 50% of labor cost and started its operation in October 2020 in time for Christmas. A cost flow is illustrated below for its two departments: WORK IN PROC-Cutting MATERIALS DM P35,100 800 to Sewing LABOR DL 15,000 P??? WORK IN PROC- Sewing FACTORY OH OVERHEAD 1,000 dolls ? Finished 700 units ?? DM 7,900 DL 15,000 In Process ?? OH 200dolls50%done In Process ?? 100 dolls 60%done Additional costs to process further in the 2nd department

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