Harris Furniture Company manufactures living room furniture through two departme
ID: 2416113 • Letter: H
Question
Harris Furniture Company manufactures living room furniture through two departments: Framing and Upholstering. Materials are entered at the beginning of each process. For May, the following cost data are obtained from the two work in process accounts.
Framing
Upholstering
Work in process, May 1
$0
$?
Materials
450,000
?
Conversion costs
261,000
330,000
Costs transferred in
0
600,000
Costs transferred out
600,000
?
Work in process, May 31
111,000
?
Answer the following questions
(a) If 3,000 sofas were started into production on May 1 and 2,500 sofas were transferred to Upholstering, what was the unit cost of materials for May in the Framing Department?
Unit cost of materials for may
$
(b) Using the data in (a) above, what was the per unit conversion cost of the sofas transferred to Upholstering?
Conversion cost per unit
$ per unit
(c) Continuing the assumptions in (a) above, what is the percentage of completion of the units in process at May 31 in the Framing Department? (Round answer to 0 decimal places, e.g. 25%.)
Percentage of completion of units in process
%
Harris Furniture Company manufactures living room furniture through two departments: Framing and Upholstering. Materials are entered at the beginning of each process. For May, the following cost data are obtained from the two work in process accounts.
Framing
Upholstering
Work in process, May 1
$0
$?
Materials
450,000
?
Conversion costs
261,000
330,000
Costs transferred in
0
600,000
Costs transferred out
600,000
?
Work in process, May 31
111,000
?
Answer the following questions
Explanation / Answer
(a) Unit Cost of Material in Framing Deptt = $450000/3000 = $ 150 p.u
(b) per unit conversion cost of sofas transferred =
total per unit cost incurred on conversion incl material cost = $600000/2500= $ 240 p.u
Unit conversion cost = $ 240 -$150 =$ 90
(c) % copletion of units in process in Framing Deptt =
Total cost incurred = $ 111000
total unit cost incurred = $111000/500 = $ 222
Unit Conversion cost incurred = $ 222-$ 150 =$72
% completion = 72/90*100 = 80%
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