PLEASE HELP! I have tried everything and can\'t figure it out! Cost of Productio
ID: 2566306 • Letter: P
Question
PLEASE HELP! I have tried everything and can't figure it out!
Cost of Production Report The Cutting Department of Tangu Carpet Company provides the following data for December 2014. Assume that all materials are added at the beginning of the process. work in process, December 1, 14,400 units, 55% completed $161,136 $115,200 45,936 $161,136 "Direct materials (14,400 × $8.00) conversion (14,400 × 55% × $5.80) Materials added during December from Weaving Department, 221,600 units Direct labor for December Factory overhead for December Goods finished during December (includes goods in process, December 1), 224,200 units work in process, December 31, 11,800 units, 30% completed $1,783,880 563,838 689,136 l@ a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in"O". For the cost per equivalent unit computations, round your answers to two Hide Hintis) decimal places.Explanation / Answer
Solution:
I am providing here the correct answers related to following:
Equivalent Units for Conversion
Equivalent Units
Whole Unit
Direct Material
Conversion
Inventory in process, Dec 1
14400
It is correct in the question
6480
Started and completed in December
209800
209800
Transferred to finished goods in December
224200
216280
Inventory in Process, Dec 31
11800
3540
Total units to be assigned cost
236000
219820
Cost per Equivalent Unit for Conversion
Cost per Equivalent Unit:
Direct Material
Conversion
Total costs for December in Cutting Dept.
It is correct in the question
$1,252,974
Total Equivalent Units
219820
Cost per Equivalent unit
$5.70
Cost assigned and allocated to complete and partially completed units
Cost Assigned to production:
Direct Material
Conversion Costs
Total Cost
Inventory in process, Dec 1
$0
Costs incurred in December
$3,036,854
Total costs accounted for by the cutting department
$3,036,854
Cost allocated to completely and partially completed units:
Inventory in process, Dec 1 balance
$161,136
To complete inventory in process Dec 1
$0
$36,936
(6480*5.7)
$36,936
Cost of completed Dec 1 work in process
$198,072
Started and Completed in December
$1,688,890
$1,195,860
(209800*5.7)
$2,884,750
Transferred to finished goods in December
$3,082,822
Inventory in process, December 31
$94,990
$20,178
(3540*5.7)
$115,168
Total costs assigned by the cutting department
$3,197,990
Change in Conversion Cost per equivalent Unit = (5.80 – 5.70) = $0.10 Decrease
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Equivalent Units
Whole Unit
Direct Material
Conversion
Inventory in process, Dec 1
14400
It is correct in the question
6480
Started and completed in December
209800
209800
Transferred to finished goods in December
224200
216280
Inventory in Process, Dec 31
11800
3540
Total units to be assigned cost
236000
219820
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