Echo Sports Company produces home basketball goal systems consisting of a stand, backboard, rim, and net. The company has sufficient orders
and capacity to produce 800 goal systems per month. Manufacturing costs and other costs are shown below:
Elite Custom Cabinetry Company produces custom cabinet order to exact measure based off CAD drawings provided by kitchen remodeling firms:
As of June 1, there was one order in production (job 5-3) and two new jobs were started in June (jobs 6-1 and 6-2).
Job 5-3 had incurred costs as follows prior to the month of June: direct material $4,600; direct labor $6,550, overhead $3,400
There were no finished goods as orders ship out upon completion. Raw material inventory was $18,600 as of June 1.
The following events occurred during June:
1. Purchased additional raw materials of $20,000.
2. Incurred direct labor hours of 640 hours at a rate of $24.00 during the month of June.
3. Incurred total manufacturing overhead costs of $18,400 during the month of June.
4. Assigned Direct materials and direct labor hours to jobs as follows:
Process Job Costing and Equivalent Units of Production
Bay Manufacturing produces paint. The company has two processes: mixing and packaging.
The ingredients for the paint are mixed in large batches and then transferred to the packaging
department, where one-gallon cans are filled, capped, labeled, and boxed.
There was no work in process on February 1. The materials are all brought to the packaging department up front
and charged to the job. Nothing is transferred to finished goods until the entire job is complete. The
materials costs include the packaging, material, and the cost transferred from the mixing department.
On February 2, 15,000 gallons (job 2-1) were transferred into the packaging department from the
mixing department and completed on February 19.