Finishing Department Costs : Work in process inventory, April1, 450 units; mater
ID: 451749 • Letter: F
Question
Finishing Department Costs:
Work in process inventory, April1, 450 units; materials
100% completed; conversion 60% complete...........$8,208*
Costs transferred in during the month from the
preceding department, 1,950 units..........................17,940
Materials cost added during the month........................6,210
Conversion costs incurred during the month...............13,920
Total department costs..............................................$46,278
Finishing Departments assigned to:
Units completed and transferred to ffinished goods,
1,800 units at $25.71 per unit..................................$46,278
Work in Process Inventory, April 30, 600 units;
materials 0% complete; conversion 35% complete..........0
Total department costs assigned .................................$46,278
* Consists of costs transferred in, $4,068; materials cost, $1,980; and conversion cost, $2,160
Provost Industries manufactures a ceramic product that goes through two processing departments—Molding and Finishing. The company uses the weighted-average method in its process costing.
How do you explain to the president why the unit cost on the new assistant controller’s report is so high?
Explanation / Answer
The costs incurred were high due the some of the factors:
These are the only two factors that contributed to the increase in the cost for the month. The president would accept the case, if the two above factors were put forward to him.
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