M@ newconnec Help S 18 Homework Executive Designs began making high-quality offi
ID: 2543087 • Letter: M
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M@ newconnec Help S 18 Homework Executive Designs began making high-quality office furniture In January. The company's executive desks are produced in two departments: Cutting and Finishing. Component kits are produced In the Cutting Department and then transferred to the Finishing Department for trimming and assembly. During its first month of operations, the Cutting Department started 15,000 executive desk kits. January direct materials costs In the Cuttlng Department totaled $600,000, and conversion costs totaled $590,000. Ending Inventory on January 31 consisted of 4,000 partlaly processed component kts. These units were 100 percent complete with respect to direct Assume that on January 31 the Finlshing Department of Executive Designs had 3,000 partially trimmed and assembled executive desks in ending inventory. These units were, of course, 100 percent complete with respect to components transferred in from the Cutting Department, but only 30 percent complete with respect to direct trim materials, and 60 percent complete with respect to conversion. During January, the Finishing Department incurred direct materials costs (for trim) of $142,400, and conversion costs of $235,200. a. Compute how many units were started in the Finishing Department during January b. Compute the number of executive desks transferred out of the Finishing Department in January. e. Compute the equivalent units of input resources for the Finishing Department in January d. Compute the cost per equivalent unit of input resource for the Finishing Department in January e. Prepare the summary journal entry required to transfer the cost of executive desks from the Finishing Department's Work in Process Inventory to the company's Finished Goods Inventory in January f. Compute the total cost assigned to the Finishing Department's ending inventory in process on January 31. Complete this question by entering your answers in the tabs below Required A Required B Required CRequired D Required E Required Compute how many units were started in the Finishing Department during JanuaryExplanation / Answer
Production Cost Report For Cutting Department For the Month Ended Jan - 31 Unit Reconciliation Units to account for: Beginning WIP - Started into Production 15,000 Total units to account for 15,000 Total units accounted for Completed during the period (15,000 - 4,000) 11,000 Ending WIP 4,000 Total units accounted for 15,000 Equivalent Units of Production (EUP) - Weighted Average Method Units % Material EUP-Materials % Conversion EUP-Conversion Completed during the period 11,000 100% 11,000 100% 11,000 Ending WIP 4,000 100% 4,000 20% 800 Equivalent Units of Production (EUP) 15,000 11,800 Cost per EUP Materials Conversion Beginning WIP - - Cost Incurred during the period 600,000 590,000 Total Costs Costs 600,000 Costs 590,000 Equivalent Units of Production (EUP) EUP 15,000 EUP 11,800 Cost per Equivalent Units of Production 40.00 50.00 Cost Assignment and Reconciliation Costs Transferred Out EUP Cost per EUP Total Cost Direct Materials 11,000 40.00 440,000.00 Conversion 11,000 50.00 550,000.00 Total transferred Out 990,000.00 Costs of Ending WIP EUP Cost per EUP Total Cost Direct Materials 4,000 40.00 160,000.00 Conversion 800 50.00 40,000.00 Total Ending WIP 200,000.00 Total costs accounted for 1,190,000.00 Production Cost Report For Finishing Department For the Month Ended Jan - 31 Unit Reconciliation Units to account for: Beginning WIP - Started into Production - Transff. from Cutting Deptt. 11,000 Total units to account for 11,000 Total units accounted for Completed during the period (11,000 - 3,000) 8,000 Ending WIP 3,000 Total units accounted for 11,000 Equivalent Units of Production (EUP) - Weighted Average Method Units % Cutting Deptt. EUP-Cutting % Material EUP-Materials % Conversion EUP-Conversion Completed during the period 8,000 100% 8,000 100% 8,000 100% 8,000 Ending WIP 3,000 100% 3,000 30% 900 60% 1,800 Equivalent Units of Production (EUP) 11,000 8,900 9,800 Cost per EUP Cutting Materials Conversion Beginning WIP - - Cost Incurred during the period 990,000 142,400 235,200 Total Costs Costs 990,000 Costs 142,400 Costs 235,200 Equivalent Units of Production (EUP) EUP 11,000 EUP 8,900 EUP 9,800 Cost per Equivalent Units of Production 90.00 16.00 24.00 Cost Assignment and Reconciliation Costs Transferred Out EUP Cost per EUP Total Cost Cutting Deptt. 8,000 90 720,000 Direct Materials 8,000 16 128,000 Conversion 8,000 24 192,000 Total transferred Out 1,040,000 Costs of Ending WIP EUP Cost per EUP Total Cost Cutting Deptt. 3,000 90 270,000 Direct Materials 900 16 14,400 Conversion 1,800 24 43,200 Total Ending WIP 327,600 Total costs accounted for 1,367,600 Answer a. No. of Units Started in Finishing Department 11,000 Answer b. No. of Units Transferred out of Finishing Department 8,000 Answer c. EUP-Cutting EUP-Materials EUP-Conversion Equivalent Units 11,000 8,900 9,800 Answer d. Cutting Materials Conversion Cost per Equivalent Units - Finishing Deptt. 90.00 16.00 24.00 Answer e. Journal Entry Particulars Dr. Amt. Cr. Amt. Finished Goods Inventory 1,040,000 WIP - Finishing Department 1,040,000 (To record the goods completed by Finishing Deptt.) Answer f. Ending WIP - Finishing Department 327,600
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