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The following information pertains to May activity in Accessory World\'s Coating

ID: 2777299 • Letter: T

Question

The following information pertains to May activity in Accessory World's Coating Department: Compute how many cut mat sets were started in the Coating Department during May. Prepare a schedule showing: (1) the number of mat sets transferred out of the Coating Department in May. and (2) the number of mat sets started and completed by the Coating Department in May. Compute the equivalent units of input resources for the Coating Department in May. Compute the cost per equivalent unit of input resource for the Coating Department in May. Prepare the summary journal entry required to transfer the cost of finished mat sets from the Coating Department's Work in Process Inventory to the company's Finished Goods Inventory in May. Compute the total cost assigned to the Coating Department's ending inventory in process on May 31.

Explanation / Answer

Answer:a This is from problem 18.10 part A. It carries down and is applied to this section Outputs Working in Progress May 31= 10000

58000-10000= 48000 sets

Answer:b (1) Beginning work in process-6,000 sets

Start new units in May-48,000 sets

Total 54,000 sets Outputs

Ending work in process-(9,000) sets

Completed and transferred mat sets- 45,000 sets

(2) Total input units 54,000 sets

Ending work in process-(9,000) sets

Beginning work in process- 6,000 sets

Units completed and transferred- 39,000 sets

Answer:c

Answer:d

Answer:e

Finished Goods Inventory A/C Dr. $360000

    To Work in Process: Coating Department A/C   $360000

To record the transfer of 45,000 mat sets to Finished Goods

Inventory in May:

Cost of beginning inventory on May 1 $ 45,300

May cut materials (39,000 equivalent units × $6) 234,000

May direct materials (41,400 equivalent units × $0.25) 10,350

May conversion (40,200 equivalent units × $1.75) 70,350

Total cost of units transferred   $360000

Answer:f

Input resources required Cut Material Direct Material Conversion To Finish beginning inventory in process on May 1: Cut materials (6,000 units, 0% to complete) 0 Direct materials (6,000 units require 40% to complete) 2400 Conversion (6,000 units require 20% to complete) 1200 To start and complete 39,000 units in May 39000 39000 39000 To start ending inventory in process on May 31 Cut materials (9,000 units 100% complete) 9000 Direct materials (9,000 units 70% complete) 6300 Conversion (9,000 units 90% complete) 8100 Equivalent units of input resources in May 48000 47700 48300