1. We produce tennis racquets. In the Assembly Department, we have 3 types of Direct Materials: frame, string, and handle, as well as normal Conversion Costs. We add the frame direct material at the beginning of the assembly process so we can bend it, polish it, etc. About 6 minutes is used working on the frame. Then, we add the string direct material and work on it for about the next 3 minutes. Then, we add the handle direct material and finish working on it over the next 1 minute. So, each racquet spends about 10 minutes in the Assembly Department. The Conversion Costs are added evenly throughout the entire time. We had 200 partially completed racquets in our beginning inventory that were 55% complete. We started 5,000 more this period. We had 300 partially completed racquets in our ending inventory that were 80% complete. Based on this information, complete the following table: Whole Units Beg Inv S & C End Inv Total EU for DM Frames EU for DM - String EU for DM - Handle EU for CC

1. We produce tennis racquets. In the Assembly Department, we have 3 types of Direct Materials: frame, string, and handle, as well as normal Conversion Costs. We add the frame direct material at the beginning of the assembly process so we can bend it, polish it, etc. About 6 minutes is used working on the frame. Then, we add the string direct material and work on it for about the next 3 minutes. Then, we add the handle direct material and finish working on it over the next 1 minute. So, each racquet spends about 10 minutes in the Assembly Department. The Conversion Costs are added evenly throughout the entire time. We had 200 partially completed racquets in our beginning inventory that were 55% complete. We started 5,000 more this period. We had 300 partially completed racquets in our ending inventory that were 80% complete. Based on this information, complete the following table: Whole Units Beg Inv S & C End Inv Total EU for DM Frames EU for DM - String EU for DM - Handle EU for CC

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 2EA: Rene is working with the operations manager to determine what the standard labor cost is for a spice...

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Sample Exercise opens EA2. Rene is working with the operations manager to determine what the standard labor cost is for a spice chest. He has watched the process from start to finish and taken detailed notes on what each employee does. The first employee selects and mills the wood, so it is smooth on all four sides. This takes the employee 1 hour for each chest. The next employee takes the wood and cuts it to the proper size. This takes 30 minutes. The next employee assembles and sands the chest. Assembly takes 2 hours. The chest then goes to the finishing department. It takes 1.5 hours to finish the chest. All employees are cross-trained so they are all paid the same amount per hour, $17.50. A. What are the standard hours per chest? B. What is the standard cost per chest for labor?