Use the average cost method with the following data: Prepare a cost of productio
ID: 2397551 • Letter: U
Question
Use the average cost method with the following data:
Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January using the average cost method. If required, round your cost per equivalent unit answer to two decimal places.
Work in process, January 1, 6,700 units, 10% completed $51,590 Materials added during January from Weaving Department, 126,600 units 946,968 Direct labor for January 243,998 Factory overhead for January 192,724 Goods finished during January (includes goods in process, January 1), 123,900 units — Work in process, January 31, 9,400 units, 70% completed —Explanation / Answer
Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January using the average cost method
Unit charged to production Inventory in process, January 1 6700 Received from Weaving Department 126600 Total units accounted for by the Cutting Department 133300 units to be assigned cost Whole unit Equivalent Units of Production Transferred to finished goods in January 123900 123900 Inventory in process, January 31 9400 6580 Total units to be assigned cost 133300 130480 Cost information Cost per equivalent unit Costs Total costs for january in cutting department 1435280 Total equivalent unit 130480 Cost per equivalent unit 11 Cost assigned to production Inventory in process, January 1 51590 Costs incurred in January 1383690 Total costs accounted for by the Cutting Department 1435280 Costs allocated to completed and partially completed units: Transferred to finished goods in January 1362900 Inventory in process, January 31 72380 Total costs assigned by the Cutting Department 1435280Related Questions
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