Seved Help Accessory World makes floor mats for the automobile Industry. Finishe

Question

Seved Help Accessory World makes floor mats for the automobile Industry. Finished sets of mats must pass through two departments: Cutting and Coating. Large sheets of synthetic material are cut to size in the Cutting Department and then transferred to the Coating Department where each set is sprayed with a chemical coating for improved durability. The following information pertains to May activity in the Cutting Department. Cost data Total cost of beginning inventory on May1 Direct naterials costs incurred in Kay Conversion costs incurred in May 44,800 200,000 87,200 Physical units data Units in process, May 1 Units started in May Units in process, May 31 8,000 sets 50,000 sets 10,000 sets Percentage of completion data 1008 80 Direct materials, May 1 Conversion, May 1 Direct materials, May 31 Conversion, May 31 100 20 The following information pertains to May activity in Accessory World's Coating Department. Cost datas Total cost of beginning inventory on May 145,300 Direct materials costs ineurred in May Conversion costs incurred in May Cut sets transferred in during May 11,925 84,525 Physical units data Units in process, May 1 Units started in May Unita in process,May 3 6,000 sets 9,000 sets 608 sets Percestage of completion datar Direct materials, May 1

Explanation / Answer

a

compute how many cut mat sets were started in the coating department during May

Inputs:

$

work in process, May

8000 sets

Units started in may

50000 sets

Total sets

58000 sets

Outputs:

Work in process May 31

10000 sets

Completed and transferred mat sets (58000-10000)

48000 sets

b

Prepare a schedule showing

(a) The number of mat sets transferred out to the coating department in May

(b) The number of mat sets started and completed by cutting department in May

Inputs:

$

work in process, May

8000 sets

Units started in may

50000 sets

Total sets

58000 sets

Outputs:

Work in process May 31

10000 sets

Completed and transferred mat sets (58000-10000)

48000 sets

Units transferred to cutting department in May

48000

Less: Beginning WIP

-8000

40000 Sets

c

compute the equivalent unit of input resources for coating department in may

Direct Materials

Conversion

Units in beginning of May 8000

Direct materials 100 % complete

0

Conversion (80% completed, 20% in process)

1600

Units started and completed in may

40000

40000

10000 units of WIP (100% complete, 20% complete)

10000

2000

50000

43600

d

Compute cost per equivalent unit of input resource for the cutting department in May

Direct Materials

conversion

Cost incurred in May

200000

87200

Equivalent units calculated in above c

50000

43600

cost per equivalent unit

$4

$2

a

compute how many cut mat sets were started in the coating department during May

Inputs:

$

work in process, May

8000 sets

Units started in may

50000 sets

Total sets

58000 sets

Outputs:

Work in process May 31

10000 sets

Completed and transferred mat sets (58000-10000)

48000 sets

b

Prepare a schedule showing

(a) The number of mat sets transferred out to the coating department in May

(b) The number of mat sets started and completed by cutting department in May

Inputs:

$

work in process, May

8000 sets

Units started in may

50000 sets

Total sets

58000 sets

Outputs:

Work in process May 31

10000 sets

Completed and transferred mat sets (58000-10000)

48000 sets

Units transferred to cutting department in May

48000

Less: Beginning WIP

-8000

40000 Sets

c

compute the equivalent unit of input resources for coating department in may

Direct Materials

Conversion

Units in beginning of May 8000

Direct materials 100 % complete

0

Conversion (80% completed, 20% in process)

1600

Units started and completed in may

40000

40000

10000 units of WIP (100% complete, 20% complete)

10000

2000

50000

43600

d

Compute cost per equivalent unit of input resource for the cutting department in May

Direct Materials

conversion

Cost incurred in May

200000

87200

Equivalent units calculated in above c

50000

43600

cost per equivalent unit

$4

$2

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