Question

In: Accounting

Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products....

Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products. During July, the beginning work in process in the cutting department was half completed as to conversion, and complete as to direct materials. The beginning inventory included $40,000 for materials and $60,000 for conversion costs. Ending work-in-process inventory in the cutting department was 40% complete. Direct materials are added at the beginning of the process.

Beginning work in process in the finishing department was 80% complete as to conversion. Direct materials for finishing the units are added near the end of the process. Beginning inventories included $24,000 for transferred-in costs and $28,000 for conversion costs. Ending inventory was 30% complete. Additional information about the two departments follows:

​ Cutting Finishing
Beginning work-in-process units 20,000 24,000
Units started this period 60,000 64,000
Units transferred out this period 64,000 68,000
Ending work-in-process units ​ 20,000
​ ​ ​
Material costs added $48,000 $34,000
Conversion costs 28,000 68,500
Transferred-out cost from Cutting to Finishing 128,000 ​
​
Required:

Calculate the Cost per equivalent unit for the Finishing department, for Direct Materials,
Convesion Costs and Transferred in costs, using the FIFO method

Solutions

Expert Solution

Production cost worksheet
Finishing Department
FIFO Method
Flow of production Physical units Direct Materials Conversion Trans-in
Work-in-progress, beginning 24000
Started during period 64000
To account for 88000
Good units completed
Beginning work in process 24000 24000(24000*100%) 4800(24000*(100-80%))
Started and completed 44000 44000(100%) 44000(100%) 44000(100%)
Ending work in process 20000 0(0%) 6000(20000*30%) 20000(100%)
Accounted for 88000 68000 54800 64000
Costs Totals Direct Materials Conversion Trans-in
WIP, beginning $ 52000
Costs added during period 230500 $34000 $68500 $128000
Total cost to account for $282500 $34000 $68500 $128000
Divided by equivalent units 68000 54800 64000
Equivalent-unit costs $3.75 $0.50 $1.25 $2.00

ANY DOUBTS OR CORRECTIONS?

JUST LEAVE A COMMENT BELOW

THANK YOU!

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products....
Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products. During July, the beginning work in process in the cutting department was half completed as to conversion, and complete as to direct materials. The beginning inventory included $40,000 for materials and $60,000 for conversion costs. Ending work-in-process inventory in the cutting department was 40% complete. Direct materials are added at the beginning of the process. Beginning work in process in the finishing department was...
Derby Company produces baseball gloves and cricket gloves. It has two departments that process all products....
Derby Company produces baseball gloves and cricket gloves. It has two departments that process all products. During July, the beginning Work-in-Process in the Cutting department was half completed as to conversion, and fully complete as to direct materials. The beginning inventory included $40,000 for materials and $60,000 for conversion costs. Ending work-in-process inventory in the Cutting department was 40% complete. Direct materials are added at the beginning of the process. Beginning Work-in-Process in the Finishing department was 80% complete as...
Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and...
Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and Department T produces the tennis rackets. Munoz currently uses plantwide allocation to allocate its overhead to all products. Direct labor cost is the allocation base. The rate used is 100 percent of direct labor cost. Last year, revenue, materials, and direct labor were as follows: Baseball Bats Tennis Rackets Sales revenue $ 1,530,000 $ 1,000,000 Direct labor 290,000 145,000 Direct materials 554,000 288,000 Required:...
Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and...
Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and Department T produces the tennis rackets. Munoz currently uses plantwide allocation to allocate its overhead to all products. Direct labor cost is the allocation base. The rate used is 200 percent of direct labor cost. Last year, revenue, materials, and direct labor were as follows. Baseball Bats Tennis Rackets Sales revenue $ 1,350,000 $ 900,000 Direct labor 250,000 125,000 Direct materials 550,000 275,000 Required:...
6. Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed...
6. Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $377,400, and the sales mix is 20% bats and 80% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $40 $30 Gloves 100 60 a. Compute the break-even sales (units) for both products combined. units b. How many units of each product, baseball bats and baseball gloves,...
Weather Instruments assembles products from component parts. It has two departments that process all products. During...
Weather Instruments assembles products from component parts. It has two departments that process all products. During January the beginning work-in-process in the assembly department was half completed as to conversion and complete as to direct materials. The beginning inventory included $12,000 for materials and $4,000 for conversion costs. Overhead is applied at the rate of 50 percent of direct manufacturing labour costs. Ending work-in-process inventory in the assembly department was 40 percent complete. All spoilage is considered normal and is...
The Huber Batting Company manufactures wood baseball bats. Huber​'s two primary products are a youth​ bat,...
The Huber Batting Company manufactures wood baseball bats. Huber​'s two primary products are a youth​ bat, designed for children and young​ teens, and an adult​ bat, designed for high school and​ college-aged players. Huber sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $35​; the adult bat sells for $50. Huber​'s highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season....
Haney Batting Company manufactures wood baseball bats. Haney's two primary products are a youth bat, designed...
Haney Batting Company manufactures wood baseball bats. Haney's two primary products are a youth bat, designed for children and young teens, and an adult bat, designed for high school and college-aged players. Haney sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $35; the adult bat sells for $55. Haney's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season.Haney's balance...
Suppose that a firm produces baseball bats in a monopolistically competitive market.
 4. Is monopolistic competition efficient? Suppose that a firm produces baseball bats in a monopolistically competitive market. The following graph shows its demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve. Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with...
Otylia Manufacturing Company assembles its product in several departments. It has two departments that process all...
Otylia Manufacturing Company assembles its product in several departments. It has two departments that process all units. During February, the beginning work in process in the cutting department was half completed as to conversion, and complete as to direct materials. The beginning inventory included $12,000 for materials and $3,000 for conversion costs. Ending work-in-process inventory in the cutting department was 40% complete. Direct materials are added at the beginning of the process. Beginning work in process in the finishing department...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT