NOTE: wrt stands for \"with respect to\" Questions: 1. What were the total costs
ID: 2516831 • Letter: N
Question
NOTE: wrt stands for "with respect to"
Questions:
1. What were the total costs to be accounted for?
2. What was the cost per equivalent unit of production for August for Assembly?
3. What was the cost per equivalent unit of production for August for Material?
4. What was the cost per equivalent unit of production for August for Conversion?
5. What was the total cost of the parts transferred to finished goods in August?
4. What was the total cost in WIP-Testing at 8/31?
Perfect Parts manufactures a part used in building airplanes. They have three departments (machining, assembly, and testing) They use Process Costing (FIFO method On July 31, they had the following costs in WIP-Assembly: Machining 48,750 2,650 Assembly Conversion 39,750 $ 91,150 Assembly Material There were 2,500 of the parts on hand at 7/31. The parts were 75% complete wrt Assembly Materials costs and 50% complete wrt Assembly Conversion costs. During August, 16,000 parts were transferred in from the Machining department. The cost of the parts transferred in was $320,000. 16,500 units were transferred out. 2,000 parts were not yet complete on August 31st. The 2,000 parts in ending inventory were 90% complete wrt Assembly Materials costs and 60% complete wrt Assembly Conve rstion costs Total manufacturing costs incurred in the Assembly department in August were: Material 22,995 Conversion_248,395 $ 271,390Explanation / Answer
UNITS TO ACCOUNT FOR: Beginning Work in Process units 2,500.00 Add: Units Started in Process 16,000.00 Total Units to account for: 18,500.00 UNITS TO BE ACCOUNTED FOR: Units completed from beginning work in process 2,500.00 Units started and completed 14,000.00 Ending Work in Process 2,000.00 Total Units to be accounted for: 18,500.00 Equivalent Units: Transferred in Cost Material Cost Conversion Cost % Completion Units % Completion Units % Completion Units Units completed from beginning WIP 0% 0.00 25% 625.00 50% 1,250.00 Units started annd completed 100% 14,000.00 100% 14,000.00 100% 14,000.00 Ending Work in Process 100% 2,000.00 90% 1,800.00 60% 1,200.00 Total Equivalent units 16,000.00 16,425.00 16,450.00 COST PER EQUIVALENT UNIT: Transferred-in Material Conversion Cost added during the period 320,000 22,995 248,395 Equivalent Units 16,000.00 16,425.00 16,450.00 Cost per Equivalent unit 20.00 1.40 15.10 TOTAL COST ACCOUNTED FOR: Units started and Completed and Transferred out (14000 units) Equivalent unit Cost per EU Total Cost Transferred-in cost 14,000 20 280000 Material cost 14,000 1.4 19600 Conversion Cost 14,000 15.1 211400 Total Cost of Units completed and transferred out: 511000 Completed from beginning Work in process (2500 units) Equivalent unit Total Cost Beginning cost 91150 Transferred-in cost 0.00 20 0 Material cost 625.00 1.4 875 Conversion Cost 1,250.00 15.1 18875 Total cost of Ending Work in process: 110,900 Total cost assigned to Finished Goods ($29430+$9648) 621,900 Ending Work in Process (2000 units) Equivalent unit Total Cost Transferred-in cost 2,000.00 20 40000 Material cost 1,800.00 1.4 2520 Conversion Cost 1,200.00 15.1 18120 Total cost of Ending Work in process: 60,640 Total Cost accounted for: 682,540 Req 1: Total Cost to be accounted for: Cost of beginning WIP 91150 Add: Current cost Transferred in 320,000 Material 22995 Conversion 248395 Total Cost to be accounted for: 682540 Req 2: Cost of per Equivalen unit for Assembly (20+1.40+15.10): 36.50 Req 3: Cost per Equivalent unit for material: 1.40 Req 4: Cost per Equivalent unit for conversion: $ 15.10 Req 5: Total cost of parts manufactured transferred to FG: Costs of units from beg. Wip 511000 Add: Cost of units started and compelted 110900 Total cost of units transferred to FG 621900 Req6. Cost of ending WIP : $ 60,640
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