The Cutting Department of the Rock Island Custom Cabinetry Corpo process costing

Question

The Cutting Department of the Rock Island Custom Cabinetry Corpo process costing corporation) had no work in p period, 12,000 units were completed during the period, 1,000 units ration ( a the rocess at the beginning of completed at the end of the debited to the Work in Process- Cutting Department during the period: Direct materials (13,000 lbs. at $6.00/lb.) Direct Labor $78,000 105,000 18,000 Factory Overhead 66. Assuming all direct materials are placed in process at the beginning of production, what is the total cost of the Work in Process-Cutting Department inventory at the end of the period? a. $6,400 b. $8,400 c. $10,000 d. $4,000 e. $11,000

Explanation / Answer

Equivalent Finished Units = 1000*40% complete = 400 units

Costing of WIP

Direct Materials ; 1000@6 = $6000

Direct Labour for 12000+400 finished units = 105000

So cost of 400 equivalent finished units = 105000/12400*400=$3387

Factory overheads for 12400 equivalune units = 18000

So cost of 400 equivalent finished units = 18000/12400*400=$581

So total cost of WIP units = 6000+3387+581 =$9968

So the answer from the given option is (c) i.e. ~$10000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.