Everlasting Gobstoppers and Wonka Bars

Willy Wonka Inc. has two products: Everlasting Gobstoppers and Wonka Bars. Annual production and sales are 800 units of Everlasting Gobstoppers and 1.300 units of Wonka Bars. The company has traditionally used direct labor hours as the basis for applying all manufacturing overhead. Everlasting Gobstoppers require .6 direct labor hours per unit and Wonka Bars require 3 direct labor hours per unit. The total estimated overhead for the next period is $70,147. The company is considering switching to an activity based costing system for the purpose of computing unit overhead cost. The new activity-based costing system would have three overhead activity cost pools – Pouring, Forming and General Factory. Estimated overhead costs and expected activity are as follows: Expected Activity Estimated Overhead Everlasting Wonka Cost Gobstoppers Bars Total Activity Cost Pool Pouring Forming 900 $21,204 300 600 $17.645 900 100 1,000 $31.298 400 360 760 General factory Total $70,147 The overhead cost per unit of Wonka Bars under the traditional costing system is closest to: (Round each step to 2 decimal places, if necessary) The following data is the same data used in the previous question: Selected T-accounts of the Custom Cat Helmets Co. are provided below: Raw Materials Bal. 40,000 Finished Goods 22.000 ? 75,000 Work in Process 15,000 25,000 20,000 ? Bal DM DL ? 12,000 6,000 30,000 ? Bale 8,000 Bal. 2 Bal. 13,000 Cost of Goods Sold Manufacturing Overhead 29,000 36,000 ? Bal. ? The cost of goods available for sale is: The following data is used for the next 2 questions: Jared Harding began Blue Water Inc, late last year. The following information is taken from the accounting records for the first year of business when Harding produced 15,000 units. $68.000 92.000 Raw materials used (all direct) Direct labor Manufacturing overhead (applied) 63.000 Ending Inventories: Raw materials Beginning $12,000 $15,000 7.800 12,600 Work in process Finished goods 42.300 27.500 Total manufacturing costs are: