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. Al 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 Apil are shown in the following Department B. Conversion costs are allocated based on the number of equivalent units processed in each Units started Units completed in Department A Units completed in Department B Materials 490 370 330 260 215 220 170 160 333,750 $36,750 $115,500 $181,500 Conversion costs: Department A Department B $283,400 40,800 Total conversion costs 324.200 Required: (a) What is the unit cost of each model transferred to finished goods in Apri? (Do not round intermediate calculations. Round final answers to the nearest dollar amounts and units.) Product X-10 X-20 X-40 Unit Cost Type here to search

Explanation / Answer

Department A Unit x-10 Unit X20 Unit X30 Unit started in dept A 490 330 220 Units completed(a) 370 260 170 WIP 120 70 50 WIP completion % 0.3 0.3 0.3 Wip units=wip*wip completion %   (b) 36 21 15 Total completed (a+b) 406 281 185 Department B Unit X20 Unit X30 Unit started in dept b 260 170 Units completed(a) 215 160 WIP 45 10 WIP completion % 0.6 0.6 Wip units=wip*wip completion %   (b) 27 6 Total completed (a+b) 242 166 Particulars Unit x-10 Unit X20 Unit X30 Material cost 36750 115500 181500 Total completed units in Depart A 406 281 185 Material cost p.u (a/b) 90.5 411.0 981.1 Calculation of conversion cost Particulars Department A Department B Total cost(a) 283400 40800 Total units completed(b) 406+281+185=872 242+166=408 P.unit cost (a/b) 325 100 Particulars Unit x-10 Unit X20 Unit X30 Material cost 90.5 411.0 981.1 Conv. cost 325 100 100 Total cost p.u 415.5 511 1081.1

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