GMoneymanufactures flour by a series of three processes, beginning in theMilling
ID: 2433995 • Letter: G
Question
GMoneymanufactures flour by a series of three processes, beginning in theMilling dept. From the Milling Department, the materials passthrough the sifting and packaging depts., emerging as packagedrefined flour.
Thebalance in the account Work in Process—sifting dept was asfollows on Oct 1, 2008:
Work inProcess-Sifting dept (15,000 units, 75%completed) $42,000
Thefollowing costs were charged to Work in Process-sifting dept duringOct:
Directmaterial transferred from Milling Dept: 235,800units $632,600
Directlabor 160,735
FactoryOverhead 76,900
DuringOct. 233,800 units of flour were completed. Work inProcess-sifting dept on Oct. 31 was 17,000 units, 75%completed.
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Explanation / Answer
Is there any cost of direct labor, direct material and manufacturedoverhead for work in progress,Oct 1???? Unit worked in October From work in progress, Oct 1 (15,000*25%) 3,750 Transferred in and finished goods(235,800-17,000) 218,800 From work in progress, Oct31(17,000*75%) 12,750 Total UnitsProduced 235,300 Cost in Oct DirectMaterial 632,600 DirectLabor 160,735 ManufactureOverhead 76,900 TotalCost 870,235 Unit cost of work in October = $ 3.70 Cost Transferred out Work in Progress, 42,000 Finished goods inOct 823,080 Total cost Transferredout 865,080 Work in progress, Oct 31(12,750*3.70) 47,155 cost Transferredout 865,080 Units Transferredout 233,800 UnitCost 3.7/unit
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