Question

In: Accounting

Use the following information for the Quick Study below. [The following information applies to the questions...

Use the following information for the Quick Study below.

[The following information applies to the questions displayed below.]

Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 12,300 units during November. The following production activity unit and cost information refers to the assembly department’s November production activities.

Assembly Department Units Percent of Direct
Materials
Percent of
Conversion
Beginning work in process 3,200 75 % 25 %
Units transferred out 10,200 100 % 100 %
Ending work in process 5,300 90 % 40 %
Beginning work in process
inventory—Assembly dept
$ 1,767 (consists of $1,143 for direct materials
and $624 for conversion)
Costs added during the month:
Direct materials $ 13,827
Conversion $ 17,856

rev: 12_16_2019_QC_CS-193881

QS 20-12 Weighted average: Assigning costs to output LO C3

Required:
Assign costs to the assembly department’s output—specifically, the units transferred out to the painting department and the units that remain in process in the assembly department at month-end. Use the weighted-average method. (Do not round intermediate calculations.)

Solutions

Expert Solution

Statement of Equivalent Units [Weighted Average Method]
Input Particulars Output Material Conversion
Units Units % EOU % EOU
3,200 Opening Stock
12,300 Input Introduce
Units Completed & Trfd. :- 10,200 100% 10,200 100% 10,200
Closing Stock 5,300 90% 4,770 40% 2,120
15,500 Total 15,500 14,970 12,320
Statement of Equivalent Cost Per Unit
Particulars Material ($) Conversion ($)
Total Cost Incurred (Beginning + Current)   [A] $14,970 $18,480
[$1,143 + $13,827] [$624 + $17,856]
Equivalent Units                                          [B] 14,970 12,320
Cost per Equivalent Unit                     [A / B] $1.00 $1.50
Statement of Evalution
Particulars Amount ($)
Units Completed & Trfd. (10,200 Units)
        Direct Material    [10,200 x $ 1.00]                 $10,200
        Conversion Cost [10,200 x $ 1.50] $15,300
Total Cost of FG Units Completed & Trfd.    $25,500
Closing Stock WIP (5,300 Units)
        Direct Material    [4,770 x $ 1.00]                 $4,770
        Conversion Cost [2,120 x $ 1.50] $3,180
Total Cost of Closing WIP $7,950
Production Cost Report
Particulars Units Amount ($) Particulars Units Amount ($)
To Opening Sock WIP 3,200 $1,767 By Finished Goods Trfd. 10,200 $25,500
To Direct Material Cost 12,300 $13,827
To Conversion Cost $17,856 By Closing Stock WIP 5,300 $7,950
Total 15,500 $33,450 Total 15,500 $33,450

Related Solutions

Use the following information for the Quick Study below. [The following information applies to the questions...
Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] A company is considering investing in a new machine that requires a cash payment of $41,597 today. The machine will generate annual cash flows of $17,319 for the next three years. QS 11-13 Internal rate of return LO P4 What is the internal rate of return if the company buys this machine? (PV of $1, FV of $1, PVA of $1, and...
Use the following information for the Quick Study below. [The following information applies to the questions...
Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 2016 Assets Cash $ 94,800 $ 24,000 Accounts receivable, net 41,000 51,000 Inventory 85,800 95,800 Prepaid expenses 5,400 4,200 Total current assets 227,000 175,000 Furniture 109,000 119,000 Accum. depreciation—Furniture (17,000 ) (9,000 ) Total assets $ 319,000 $ 285,000 Liabilities and...
Use the following information for the Quick Study below. [The following information applies to the questions...
Use the following information for the Quick Study below. [The following information applies to the questions displayed below.]    Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end cost and fair values for its portfolio of these debt investments follow. Portfolio of Trading Securities Cost Fair Value Tesla Bonds $ 12,600 $ 9,450 Nike Bonds 20,800 21,840 Ford Bonds 5,200 4,160 QS 15-4 Fair value adjustment to a portfolio of trading...
Required information Use the following information for the Quick Study below. [The following information applies to...
Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] BatCo makes metal baseball bats. Each bat requires 2.00 kg of aluminum at $20 per kg and 0.20 direct labor hours at $18 per hour. Overhead is assigned at the rate of $40 per direct labor hour. QS 23-5 Standard cost card LO C1 What amounts would appear on a standard cost card for BatCo?    Required information Use the...
Use the following information to answer questions [The following information applies to the questions displayed below.]...
Use the following information to answer questions [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 48,000 $ 48,000 Work in process 9,900 19,700 Finished goods 67,000 33,700 Activities and information for May Raw materials purchases (paid with cash) 194,000 Factory payroll (paid with cash) 150,000 Factory overhead Indirect materials 14,000 Indirect...
Use the following information to answer questions [The following information applies to the questions displayed below.]...
Use the following information to answer questions [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 44,000 $ 54,000 Work in process 9,500 18,800 Finished goods 59,000 34,000 Activities and information for May Raw materials purchases (paid with cash) 185,000 Factory payroll (paid with cash) 250,000 Factory overhead Indirect materials 10,000 Indirect...
Use the following information for the Exercises below. [The following information applies to the questions displayed...
Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 215 units @ $ 14.00 = $ 3,010 Jan. 10 Sales 165 units @ $ 23.00 Jan. 20 Purchase 160 units @ $ 13.00 = 2,080 Jan. 25 Sales 190 units @ $ 23.00 Jan....
Use the following information for the Exercises below. [The following information applies to the questions displayed...
Use the following information for the Exercises below. [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Standard Actual Direct materials 5 lbs. @ $7 per lb. 43,000 lbs. @ $7.20 per lb. Direct labor 2 hrs. @ $17 per hr. 16,700 hrs. @ $17.40 per hr. Overhead 2 hrs. @ $13 per hr. $ 227,900 Units manufactured 8,500 Exercise 23-9 Direct materials variances LO P3 Compute the direct materials price...
Use the following information for the Exercises below. [The following information applies to the questions displayed...
Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Pro-Weave manufactures stadium blankets by passing the products through a weaving department and a sewing department. The following information is available regarding its June inventories: Beginning Inventory Ending Inventory Raw materials inventory $ 156,000 $ 277,000 Work in process inventory—Weaving 490,000 515,000 Work in process inventory—Sewing 700,000 945,000 Finished goods inventory 1,406,000 1,216,000 The following additional information describes the company’s manufacturing activities for...
Use the following information for the Exercises below. [The following information applies to the questions displayed...
Use the following information for the Exercises below. [The following information applies to the questions displayed below.] The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 25,000 units in inventory, 60% complete as to materials and 40% complete as to conversion costs. The beginning inventory cost of $60,100 consisted of $44,800 of direct materials costs and $15,300 of conversion costs....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT