Stallone Corporation manufactures a product that requires two processes: Forming

Question

Stallone Corporation manufactures a product that requires two processes: Forming and Finishing. The company uses a process cost accounting system to accumulate costs and allocate these costs to ending work in process inventory and finished goods inventory. The products first go through the Forming Department and, when completed there, are then transferred to the Finishing Department. Once they are completed in the Finishing Department, they are sent to Finished Goods Inventory. The attached information is available for the year ending December 31, 20X2. There was no spoilage or other losses in the manufacturing process during the year.

STALLONE CORPORATION DATA FOR PROCESS COSTING DEPARTMENTS FOR YEAR ENDING DECEMBER 31, 20X2 Forming Department Finishing Department Beginning Work in Process Inventory: Units in Process 5,000 (75% complete as to direct materials) (40% complete as to conversion costs) Units in Process 6,500 (30% complete as to direct materials) (60% complete as to conversion costs) Units Started During the Period Units Transferred In During the Period Units Completed During the Period Ending Work in Process Inventory: 45,000 47,500 47,500 Units in Process (80% complete as to direct materials) (60% complete as to conversion costs) Units in Process 8,000 (30% complete as to direct materials) (60% complete as to conversion costs)

Explanation / Answer

2.

3.

STALLONE CORPORATION DATA FOR PROCESS COSTING DEPARTMENT FOR YEAR ENDING DECEMBER 31, 20x2 Forming Department Finishing Department Beginning Work in Process Inventory    Units in process 5000 (75% completed as to direct materials    40% completed as to conversion costs)    Units in process 6500 (30% completed as to direct materials    60% completed as to conversion costs) Units started during the period 45000 Units transferred in during the period 47500 Units completed during the period 47500 46000 Ending Work in Process Inventory    Units in process 2500 (80% completed as to direct materials    60% completed as to conversion costs)    Units in process 8000 (30% completed as to direct materials    60% completed as to conversion costs) Opening work in process units + units started/ units trasneferred in     = Units completed during the period + ending work in process units For Forming Department :    5,000 + 45,000 = 47,500 + ending work in process units Ending work in process units = 5,000+45,000-47,500 = 2,500 For Finishing Department :    6,500 + 47,500 = Units completed + 8,000 Units completed = 6,500 + 47,500 - 8,000 = 46,000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.