Anyone? Lennox Watches, Inc makes watches. ts assembly department started the ac

Question

Anyone? Lennox Watches, Inc makes watches. ts assembly department started the accounting period with a beginning inventory balance of $68,000 During the accounting period, the department incurred $96,000 of labor cost, and $134,000 of applied overhead cost. The department processed 6,000 total equivalent units of product during the accounting period of transferred-in cost, $62,000 of materials cost, $120,000 Required a. Assuming that 1,200 equivalent units of product were in the ending work in process inventory, determine the amount of cost transferred out of the Work in Process Inventory account of the assembly department to the Finished Goods Inventory account What was the assembly department's cost of ending work in process inventory? b. Assuming that 5.600 units of product were transferred out of the assembly department's work in process inventory to finished goods inventory, determine the amount of the assembly department's cost of ending work in process inventory What was the cost of the finished goods inventory transferred out of the assembly department? a To finished goods Ta ending inventory b To finished goods To ending inventory K Prey6 of 10 Next search

Explanation / Answer

a Cost per equivalent unit=(68000+96000+62000+120000+134000)/6000= $80 Cost allocation: To finished goods 384000 =4800*80 To ending inventory 96000 =1200*80 b To finished goods 448000 =5600*80 To ending inventory 32000 =400*80

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