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assignment as a pdf file with filename \"LastNameFirstName.pdf\". Problem 1: Lov

ID: 2334413 • Letter: A

Question

assignment as a pdf file with filename "LastNameFirstName.pdf". Problem 1: Lovely Butter (Process Costin (1.5 points) Lovely Butter produces peanut butter using a two-stage process: grinding and packaging. The following information is available in the packaging department for the month of August Beginning WIP (units) 150 Costs transferred from grinding department Cost of materials in packaging 75% completed) Conversion costs (50% completed) $450 $2,000 $1,000 $3,450 750 200 Units transferred in August from grinding department Ending work in process (units) Costs transferred from grinding in August Conversion costs incurred in August Material costs incurred in August $2,625 $5,500 $12,000 The ending WIP was 50% complete w.r.t. materials and 25% complete w.r.t. conversion costs. Compute costs transferred out and costs in ending WIP for the packaging department using the weighted average method Problem 2: Dye Engineering (Service Department Cost Allocation) (1.5 points) Budgeted cost data for the production and service departments of Dye Engineering are as follows

Explanation / Answer

1) Costs transferred out and closing stock:

2) Cost allocation:

Assembly cost = 400000+(C*65%)+(D*30%) = 400,000+(658,591.84*65%)+(297,959.18*30%)= 918,122,45

Machining + Assembly = 18,32,000

Quantity Schedule for Packaging Dept Opening WIP 150 Transferred in 750 Units to be accounted for 900 Less: Ending units 200 Transferred out 700 Less: Beginning WIP Transferred out 150 Units started and completed in Aug 550 Equivalent units Transferred in Materials Conversion costs Units in beginning WIP (A) 150 150 150 % of completion of beginning WIP in previous period (B) 100% 75% 50% % of beginning WIP completed this period [C=100%-B] 0% 25% 50% Equivalent units in beginning WIP [D=A×C]                   -              37.50                               75 Units both started and completed in current period (E) 550 550 550 Units of ending WIP (F) 200 200 200 Percentage of completion of ending WIP (G) 100% 50% 25% Equivalent units in ending WIP (H=F×G) 200 100 50 Total equivalent units (D+E+H)                750          687.50                             675 Cost per Equivalent Unit Transferred in Direct Materials Labor Total Costs incurred In Aug (I) 2625 12000 5500 Total equivalent units (J)                750                688                             675 Cost per equivalent unit (I/J)              3.50            17.45                            8.15          29.10 Cost of beginning WIP brought forward from last period (K) 3450 Direct Labor incurred in Aug on Beginning WIP (38 units *17.45 per unit)          654.55 Conversion costs incurred in Aug on Beginning WIP (75 units *8.15 per unit)          611.11 Cost incurred on beginning WIP in current period N= L+M      1,265.66 Beginning WIP (O=K+N)      4,715.66 Cost of units started and completed in current period (550 units*$29.1 per unit) (Q) 16005 Cost of units transferred out (O+Q)    20,720.66 Cost of units in ending work in process comes from units added during the period: Transferred in Direct Materials Labor Total Ending WIP 200 200 200 Cost per equivalent unit (T)              3.50            17.45                            8.15 % Of completion (U) 100% 50% 25% Total cost (S*T*U)                700            1,745                             407          2,853 Costs to be accounted for: Beginning WIP      3,450.00 Costs transferred in      2,625.00 Costs Added    17,500.00 Total    23,575.00 Accounted for as: Transferred out          20,721 Ending WIP            2,853 Total          23,574