com Homework 6 Help Executive Designs began departments: Cutting and Finishing.

Question

com Homework 6 Help Executive Designs began departments: Cutting and Finishing. Component kits are produced in the Cutting Department and then transferred to th making high-quality office furniture in January. The company's executive desks are produced In two e Finishing Department for trimming and assembly, During its first month of operations, the Cutting Department started 15,000 executive desk kits. materlals 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. a. Compute the number of component kits transferred from the Cutting Department to the Finishing Department in January. b. Compute the equivalent units of input resources for the Cutting Department in January c. Compute the cost per equlvalent unit of input resource for the Cutting Department in January d. Prepare the summary journal entry required to transfer Department in January e. Compute the total cost assigned to the Cutting Department's ending inventory on January 31 finished component kits from the Cutting Department to the Finishing Complete this questlon by entering your answers In the tabs below. Required A Required B Required CRequired D Required E Compute the number of component kits transferred from the Cutting Department to the Finishing Department In January

Explanation / Answer

Answer a Number of Component kits transferred from the cutting department to Finishing department in January No.of Component Kits Units Started 15000 Less : Units in ending work in process 4000 Number of Component kits transferred from the cutting department to Finishing department 11000 Answer b Calculation of equivalent units of input resources for the cutting department in January Physical Units % Complete with respect to Material cost Equivalent Units for Material cost % complete with respect to Conversion cost Equivalent Units for Conversion cost Units Completed 11000 100% 11000 100% 11000 Units in ending work in process 4000 100% 4000 20% 800 Equivalent units of input resources for the cutting department in January 15000 11800 Answer c Calculation of cost per equivalent unit of input resources Material Conversion Cost added during January $600,000.00 $590,000.00 / Equivalent Units 15000 11800 Cost per equivalent Unit $40.00 $50.00 Answer d Journal entry to transfer finished Goods component kits (11000 units ) from cutting departments to Finishing department Account Titles Debit Credit Work in process - Finishing Department $990,000.00 Work in process - Cutting Department $990,000.00 Answer e Cost assigned to Cutting depratment ending Inventory on January 31 Material Cost (4000 units * $40) $160,000 Conversion Cost (800 units * $50) $40,000 Cost of Ending Inventory on January 31 $200,000

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