acct322 managerial accounting costing

I don’t understand this Accounting question and need help to study.

  • 1. ABC corporation applying normal costing system has provided the following data from its activity-based costing system as follows: (Amounts in SR)

Activities

Estimated Overhead Costs

Expected Cost Drivers Quantities

Cost Drivers

Assembly

120,500

10,000

Number of Machine Hours

Processing Orders

80,500

7,000

Number of Orders

Inspection

75,500

5,000

Number of Inspection Hours

Total

276,000

22,000

Actual Data concerning the company’s product X appears below:

  • Annual unit production and sales 500 units.
  • Annual machine hours 5,000.
  • Annual number of orders 4,500.
  • Annual inspection hours 3,000.
  • Direct material cost 150 per unit.
  • Direct labor cost 100 per unit.

Required: Compute total costs per unit for the product X using activity-based costing system

  • 2. A manufacturing company uses the FIFO method in its process costing system. In the Cutting Department in June, units were 25% complete with respect to conversion in the beginning work in process inventory and 30% complete with respect to conversion in the ending work in process inventory. Other data for the department for June follow: (Amounts in SR)

units

Conversion costs

Beginning work in process inventory

20,000

50,000

Units started into production during the month

145,000

180,000

Units completed and transferred out

140,000

Ending inventory

25,000

Required:Calculate the cost per equivalent unit for conversion costs?