Glazer, Inc

question 70

Essay

Glazer, Inc. has the following production data for June:
The units in work in process are 100% complete for materials and 60% complete for conversion costs. Materials costs are $3 per unit and conversion costs are $6 per unit.
Instructions
Determine the costs to be assigned to the units transferred out and the units in ending work in process.

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Definitions:

Costs Added

The additional expenses incurred in the production process, including raw materials, labor, and overhead.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a specific activity base.

Job-Order Costing

An accounting method that tracks the costs associated with producing a specific batch of products or performing a specific service.

Manufacturing Overhead Costs

Indirect costs associated with manufacturing, including costs of running the factory, maintenance, and utilities, that cannot be directly traced to a product.