The Cutting Department of Tangu Carpet Company provides the following data for D
ID: 2421990 • Letter: T
Question
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.
a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0". For the cost per equivalent unit computations, round your answers to two decimal places.
Tangu Carpet Company
Cost of Production Report-Cutting Department
For the Month Ended December 31, 2014
Inventory in process, December 1
Received from Weaving Department
Total units accounted for by the Cutting Department
Equivalent Units
Whole Units
Direct Materials
Conversion
Inventory in process, December 1
Started and completed in December
Transferred to finished goods in December
Inventory in process, December 31
Total units to be assigned cost
Direct Materials
Conversion
Total costs for December in Cutting Department
$
$
Total equivalent units
Cost per equivalent unit
$
$
Direct Materials
Conversion
Total
Inventory in process, December 1
$
Costs incurred in December
Total costs accounted for by the Cutting Department
$
Costs allocated to completed and partially completed units:
Inventory in process, December 1 balance
$
To complete inventory in process, December 1
$
Cost of completed December 1 work in process
$
Started and completed in December
$
Transferred to finished goods in December
$
Inventory in process, December 31
Total costs assigned by the Cutting Department
$
b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (November). If required, round your answers to two decimal places.
Work in process, December 1, 9,600 units, 65% completed $99,168* *Direct materials (9,600 × $7.60) $72,960 Conversion (9,600 × 65% × $4.20) 26,208 $99,168 Materials added during December from Weaving Department, 148,000 units $1,154,400 Direct labor for December 283,071 Factory overhead for December 345,976 Goods finished during December (includes goods in process, December 1), 149,800 units — Work in process, December 31, 7,800 units, 35% completed —Explanation / Answer
a) inventory in process, december 1 9600 received from weaving department 148000 total units accounted for by cutting 157600 whole direct units materials conversion inventory in process, december 1 9600 0 3360 started and completed in december 140200 140200 140200 transferred to finished goods in dec 149800 140200 143560 inventory in process, december 31 7800 7800 2730 total units to be assigned cost 148000 146290 total cost for dec in cutting dept 1154400 629047 total equivalent units 148000 146290 cost per equivalent units 7.8 4.3 direct materials conversion total inventory in process, december 1 72960 26208 99168 costs incurred in december 1154400 629047 1783447 total costs accounted by cutting 1227360 655255 1882615 Costs allocated: inventory in process, december 1-bal 99168 to complete inventory in process-dec 1 0 14448 14448 cost of completed dec 1 WIP 113616 started and completed in december 1093560 602860 1696420 transferred to finished goods in dec 1810036 inventory in process dec 31 60840 11739 72579 total costs assigned by cutting 1882615 amount b) change in direct material costs increase $0.20 per equivalent unit increase $0.10
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