Washington, Inc., makes three models of motorized carts for vacation resorts, X-

Question

Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington manufactures the carts in two assembly departments: Department A and Department B. All three models are processed initially in Department A, where all material is assembled. The X-10 model is then transferred to finished goods. After processing in Department A, the X-20 and X-40 models are transferred to Department B for final assembly, and then transferred to finished goods. There were no beginning work-in-process inventories on April 1. Data for April are shown in the following table. Ending work in process is 30 percent complete in Department A and 60 percent complete in Department B. Conversion costs are allocated based on the number of equivalent units processed in each department. Total X-10 X-20 X40 320 Units started Units completed in Department A Units completed in Department B Materials 290 170 150 343,000 S 37,500 $ 88,000 $217.500 Conversion costs Department B Total conversion costs $ 292.500 49,750 $ 342.250 Required a. What is the unit cost of each model transferred to finished goods in April? (Do not round intermediate calculations.) Cost X-10 X-20 X-40 b. What is the balance of work-in-process inventory on April 30 for Department A? Department B? (Do not round intermediate calculations.) Balance of work-in-process ending inventory

Explanation / Answer

Solution a:

Solution b:

Computation of Equivalent unit of conversion - Department A Particulars X10 X20 X40 Physical Units: Units Started 500 320 290 Units completed 390 250 170 Ending WIP 110 70 120 Equivalent units: Unit completed & Transferred out 390 250 170 Ending WIP 33 21 36 Equivalent units of production 423 271 206

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