Words:4 QUESTION 5 Dante Carpet Manufacturing Inc. uses a process costing system

Question

Words:4 QUESTION 5 Dante Carpet Manufacturing Inc. uses a process costing system and calculates per-unit costs using the woighted average method. The company has two sequential producton departments, Extrusion and Weaving. The following data relates to production for both departments for its Rayon carpet brand for the month of January. Note that since carpet is sold by the square yard, each "unit refers to a square yard of carpet 300 units, 40% complete with respect to conversion 250 units, 20% complete with respect to conversion Beginning Work in Process Inventory Ending Work in Process Inventory 200 units, 30% complete with respect to conversion 400 units, 35% complete with respect to conversion Beginning Work in Process Inventory Ending Work in Process Inventory All direct materials are added at the beginning of the extrusion process, and conversion costs are assumed to be materials are added in the weaving process-just additional conversion costs. In the Extrusion Department, the cost of direct materials in beginning Work in Process Inventory was $15,250, and the convers Work in Process were $11,000. During January, $188,875 of direct materials and $83,350 of conversion costs were added in the Extrusion Department. Over the course of the month, 5,500 units were completed and transferred out to the Weaving Department In the Weaving Department, the beginning Inventory account Work in Process Inventory account included transferred-in costs of $13,350 and conversion costs of $4,200 on January 1. Additional conversion costs added during January were $18,648. NOTE Round all per-unit costs (based on equivalent units) to the nearest penny How many units were started in the Extrusion Department during January? E TTT ? Paragraph: -Font fann ::-Font sizi::

Explanation / Answer

Weaving Department: Units completed and Transferred out: 5500 Units Add: Ending Inventory of WIP 400 Units Units accounted for 5900 Units Less: beginning WIP in Weaving 200 Units Units started in the Weaving process 5700 Units (These started units have been transferred out of Extrusion department) Extrusion Department: Units completed and transferred out to Weaving deptt. 5700 units Add: Eending Inventory of WIP 250 units Units accounted for 5950 units Less: beginning Inventory of WIP 300 units Units Started in Extrusion department 5650 units Hence, Units started in Extrusion process: 5650 units

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