Exercise 16-11 (Part Level Submission) The Polishing Department of Harbin Compan
ID: 2461880 • Letter: E
Question
Exercise 16-11 (Part Level Submission)
The Polishing Department of Harbin Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process.
Production: Beginning inventory 1,600 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 38,400; ending inventory of 5,000 units 10% complete as to conversion costs.
Manufacturing costs: Beginning inventory costs, comprised of $20,000 of materials and $43,180 of conversion costs; materials costs added in Polishing during the month, $177,200; labor and overhead applied in Polishing during the month, $125,680 and $257,140, respectively.
(a)
Materials
Conversion Costs
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(b)
Materials
Conversion Costs
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(c)
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Exercise 16-11 (Part Level Submission)
The Polishing Department of Harbin Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process.
Production: Beginning inventory 1,600 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 38,400; ending inventory of 5,000 units 10% complete as to conversion costs.
Manufacturing costs: Beginning inventory costs, comprised of $20,000 of materials and $43,180 of conversion costs; materials costs added in Polishing during the month, $177,200; labor and overhead applied in Polishing during the month, $125,680 and $257,140, respectively.
Explanation / Answer
Units completed and transfered out = 1600+38400-5000 =35000
c)cost of units transfered out = (4.93+12) =16.93 * 35000 = $ 592550
cost of ending WIP :
Material : 5000 *4.93 = 24650
conversion cost : 500 *12 = $ 6000
Total cost of ending WIP = $ 30650 [24650+6000]
Material conversion cost Units transfered out 35000 35000 Ending WIP 5000 500 [5000*10%] Equivalent units (ans to part a) 40000 35500 cost 197200 [20000+177200] 426000 [43180+125680+257140] Cost per equivalent unit 197200/40000 = 4.93 426000/35500= 12Related Questions
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