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. Baja Corporation manufactures car seats for children. The car seats are produc

ID: 2498303 • Letter: #

Question

. Baja Corporation manufactures car seats for children. The car seats are produced in two separate departments Assembly and Finishing. The following information was obtained for the month of October: (use spreadsheet)

Assembly Department:

Direct material is added at the beginning of the process.

Beginning units in process ----- 3,350                              Ending units in process ----- 2,680

Direct labor -------------- 70% complete                           Direct labor------------- 35% complete

Factory overhead -------- 70% complete                          Factory overhead------- 35% complete

Units started---------- 42,000

Beginning work in process Costs:                              Costs added during October.

Direct material------$12,060                                                  Direct Material---------$ 157,500

Direct Labor---------$26,264                                                           Direct Labor------------$ 483,200

Factory overhead----$40,200                                                           Factory overhead-------$ 630,000

Prepare a cost summary sheet for Baja Corporation using the FIFO method.

Explanation / Answer

Cost Summary for bajaj October month cost Summary Particulars Begginning addition End ( Begginig +addition- Closing) Units amount ($) Units amount ($) Units amount ($) amount ($) (A) (a) (b) ( c) (B)=(b)/ (a) * ( c) (A)+(b)- (B) Direct Material ( 100%) 3350 12060 42000 157500 2680 10050 159510 Direct labour 2345 26264 42000 483200 938 10791.47 498672.5 Factory OH 2345 40200 42000 630000 938 14070 656130 Cost of Finished goods 1314313