Mundy Handcraft is a manufacturer of picture frames for large retailers. Evcry p
ID: 2407499 • Letter: M
Question
Mundy Handcraft is a manufacturer of picture frames for large retailers. Evcry picture frame passes through two departments the assombly dcpartment and the finishing department. This problem focuses on the asscmbly department The prccess-costing system a Mun has a single lec s calegory dire malena s and ? single m tec st alegory comversion cus s Direct ma nals are added when h ssent e nen process is 0 ? ?? le. onvers on costs are adde even during he assembly department's process. Mundy uses the weighted average method of process costing. Consider the following data for the assembly department in April 2014 EEB (Click the icon to view the data.) Requirements 1. Surnmiarize total assernbly departrierit costs for April 2014, and assign tolal costs to unils compleled (and transferred oul) and to unils i 2. whal issues should ? manager focus on when reviewing lhe equivalent units calculalion? ending work iri process To accouril or Complctod and transferred out during current period Work in process, cnding Accounted for Equivalent units of work done to date Now summarize the total costs to account for 1Data Table 155 130 535 155 155 130 39 Physical Units Direct Conversion 494 (Frames) Materials C Costs 95 490 155 130 $1,665 $988 Work in process, April1 Started during April 2014 Completed during April 2014 Work in process. April 30b Total costs added during Apnl 2014 Total Direct Conversion Production Costs Materials Costs 17,540 $11,056 Degree of completion. direct materials, 100%, conversion costs, 40% bDogree of completion direct materials, 100%, conversion costs, 30% Tolal costs to account for Print Done hoose from any list or enter any number in the input fields and then click Check AnswerExplanation / Answer
Units
Material
Conversion Cost
Opening units
95
100%
40%
Introduced
490
Total
585
Transferred
455
100%
100%
Closing WIP
130
100%
30%
Equivalent Units
WIP
Total Units
Material
Conversion cost
Opening
95
0%
0
60%
57
Ending
130
100%
130
30%
39
Introduced and completed
455
100%
455
100%
455
TOTAL Equivalent Units
680
585
551
Material
Conversion Cost
Current cost
$ 19,305.00
$ 12,844.00
EUP
585
551
Cost/unit
$ 33.0000
$ 23.31
Material
Conversion Cost
Cost/Unit
EUP
Cost allocated
EUP
Cost allocated
Opening
33.00
0
$ -
$ 23.31
57
$ 1,328.69
Ending
33.00
130
$ 4,290.00
$ 23.31
39
$ 909.10
Introduced and completed
33.00
455
$ 15,015.00
$ 23.31
455
$ 10,606.21
TOTAL
A
$ 19,305.00
B
$ 12,844.00
Total Cost accounted for
(A+B)
$ 32,149.00
*Difference due to rounding off
Units
Material
Conversion Cost
Opening units
95
100%
40%
Introduced
490
Total
585
Transferred
455
100%
100%
Closing WIP
130
100%
30%
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