Executive Designs began making high-quality office furniture in January. The com

Question

Executive Designs began making high-quality office furniture in January. The company's executive desks are produced in two departments: Cutting and Finishing. Component kits are produced in the Cutting Department and then transferred to the Finishing Department for trimming and assembly. During its first month of operations, the Cutting Department started 15,000 executive desk kits. January direct materials costs in the Cutting Department totaled $600,000, and conversion costs totaled $590,000. Ending inventory on January 31 consisted of 4,000 partially processed component kits. These units were 100 percent complete with respect to direct materials, but only 20 percent complete with respect to conversion. 1 Compute the equivalent units of input resources for the Cutting Department in January. 2. c.c. Compute the cost per equivalent unit of input resource for the Cutting Department in January. d. Prepare the summary journal entry required to transfer finished component kits from the Cutting Department to the Finishing Department in January

Explanation / Answer

Executive Designs began making high-quality office furniture in January. The company's executive desks are produced in two departments: Cutting and Finishing. Component kits are produced in the Cutting Department and then transferred to the Finishing Department for trimming and assembly. During its first month of operations, the Cutting Department started 15,000 executive desk kits. January direct materials costs in the Cutting Department totaled $600,000, and conversion costs totaled $590,000. Ending inventory on January 31 consisted of 4,000 partially processed component kits. These units were 100 percent complete with respect to direct materials, but only 20 percent complete with respect to conversion. 1 Compute the equivalent units of input resources for the Cutting Department in January. 2. c.c. Compute the cost per equivalent unit of input resource for the Cutting Department in January. d. Prepare the summary journal entry required to transfer finished component kits from the Cutting Department to the Finishing Department in January

Cost per equivalent unit of input resource for the Cutting Department in January (a) /(b)

(To transfer finished units from the Cutting Department to the Finishing Department in January

Executive Designs began making high-quality office furniture in January. The company's executive desks are produced in two departments: Cutting and Finishing. Component kits are produced in the Cutting Department and then transferred to the Finishing Department for trimming and assembly. During its first month of operations, the Cutting Department started 15,000 executive desk kits. January direct materials costs in the Cutting Department totaled $600,000, and conversion costs totaled $590,000. Ending inventory on January 31 consisted of 4,000 partially processed component kits. These units were 100 percent complete with respect to direct materials, but only 20 percent complete with respect to conversion. 1 Compute the equivalent units of input resources for the Cutting Department in January. 2. c.c. Compute the cost per equivalent unit of input resource for the Cutting Department in January. d. Prepare the summary journal entry required to transfer finished component kits from the Cutting Department to the Finishing Department in January

a) Beginning work in process, January 1 0 Units started in January 15,000 Total units in process during January 15,000 Ending work in process, January 3 -4000 Units transferred to Finishing Department in January 11,000 b) Input resources Required Direct material Conversion To Finish Beginning Inventory( No begining Inventory) 0 0 To start and complete 11,000 units in January 11,000 11,000 To start ending inventory in process on January 31 Direct materials (4,000 units 100% complete) 4,000 Conversion (4,000 units 20% complete) 800 Equivalent units of input resources in January 15000 11800 c) Direct material Conversion Cost of direct materials and conversion incurred in January(a) $600,000 $590,000 Equivalent units of input resources in January (b) 15000 11800

Cost per equivalent unit of input resource for the Cutting Department in January (a) /(b)

$40.00 $50.00 d) Work in Process: Finishing Department $990,000.00 Work in Process: Cutting Department $990,000.00

(To transfer finished units from the Cutting Department to the Finishing Department in January

(11000 units x ($40 + $50)per unit

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.