Question

In: Accounting

Terry Linens, Inc., manufactures bed and bath linens. The Bath Linens Department sews terry cloth into...

Terry Linens, Inc., manufactures bed and bath linens. The Bath Linens Department
sews terry cloth into towels of various sizes. Terry uses the weighted average method.
All materials are added at the beginning of the process. The following data are for
the Bath Linens Department for August:


Production:
Units in process, August 1, 25 percent complete*       10,000
Units completed and transferred out                            60,000
Units in process, August 31, 60 percent complete*     20,000

Costs:
Work in process, August 1:
   Materials    $49,000
   Conversion costs 2,625
      Total                                          $51,625

Current costs:
Materials $351,000
Conversion costs    78,735
     Total                                         $429,735


*With respect to conversion costs

Required

1. Prepare a physical flow schedule for the Bath Linens Department for August.
2. Calculate equivalent units of production for the Bath Linens Department for August.
3. Calculate unit cost for materials, for conversion, and in total for the Bath Linens Department for August.
4. Calculate the cost of units transferred out and the cost of ending work in process.
5. Prepare a cost reconciliation for the Bath Linens Department for August.
6. Prepare a cost of production report for the Bath Linens Department for August using the weighted average method.

Solutions

Expert Solution


Related Solutions

Terry Linens Inc. manufactures bed and bath linens. The bath linens department sews terry cloth into...
Terry Linens Inc. manufactures bed and bath linens. The bath linens department sews terry cloth into towels of various sizes. Terry uses the weighted average method. All materials are added at the beginning of the process. The following data are for the bath linens department for August: Production: Units in process, August 1, 25% complete* 25,500 Units completed and transferred out 83,000 Units in process, August 31, 60% complete* 34,000 * With respect to conversion costs. Required: Calculate equivalent units...
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company’s most recent...
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company’s most recent monthly contribution format income statement follows: Department Total Hardware Linens Sales $ 4,240,000 $ 3,140,000 $ 1,100,000 Variable expenses 1,226,000 818,000 408,000 Contribution margin 3,014,000 2,322,000 692,000 Fixed expenses 2,110,000 1,300,000 810,000 Net operating income (loss) $ 904,000 $ 1,022,000 $ (118,000) A study indicates that $379,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue...
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company’s most recent...
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company’s most recent monthly contribution format income statement follows: Department Total Hardware Linens   Sales $ 4,150,000 $ 3,040,000 $ 1,110,000   Variable expenses 1,367,000 952,000 415,000   Contribution margin 2,783,000 2,088,000 695,000   Fixed expenses 2,290,000 1,470,000 820,000   Net operating income (loss) $ 493,000 $ 618,000 $ (125,000 ) A study indicates that $374,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will...
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company’s most recent...
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company’s most recent monthly contribution format income statement follows: Department Total Hardware Linens   Sales $ 4,080,000 $ 3,030,000 $ 1,050,000   Variable expenses 1,222,000 817,000 405,000   Contribution margin 2,858,000 2,213,000 645,000   Fixed expenses 2,210,000 1,340,000 870,000   Net operating income (loss) $ 648,000 $ 873,000 $ (225,000 ) A study indicates that $375,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will...
Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly...
Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly contribution format income statement follows: Department Total Hardware Linens Sales $ 4,170,000 $ 3,140,000 $ 1,030,000 Variable expenses 1,337,000 928,000 409,000 Contribution margin 2,833,000 2,212,000 621,000 Fixed expenses 2,170,000 1,330,000 840,000 Net operating income (loss) $ 663,000 $ 882,000 $ (219,000 ) A study indicates that $374,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue...
Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly...
Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly contribution format income statement follows: Department Total Hardware Linens Sales $ 4,170,000 $ 3,110,000 $ 1,060,000 Variable expenses 1,315,000 908,000 407,000 Contribution margin 2,855,000 2,202,000 653,000 Fixed expenses 2,330,000 1,450,000 880,000 Net operating income (loss) $ 525,000 $ 752,000 $ (227,000 ) A study indicates that $373,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue...
Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly...
Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly contribution format income statement follows: Department Total Hardware Linens Sales $ 4,250,000 $ 3,090,000 $ 1,160,000 Variable expenses 1,217,000 803,000 414,000 Contribution margin 3,033,000 2,287,000 746,000 Fixed expenses 2,270,000 1,420,000 850,000 Net operating income (loss) $ 763,000 $ 867,000 $ (104,000 ) A study indicates that $374,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue...
1. Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent...
1. Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly contribution format income statement follows: Department Total Hardware Linens Sales $ 4,180,000 $ 3,150,000 $ 1,030,000 Variable expenses 1,219,000 805,000 414,000 Contribution margin 2,961,000 2,345,000 616,000 Fixed expenses 2,220,000 1,400,000 820,000 Net operating income (loss) $ 741,000 $ 945,000 $ (204,000 ) A study indicates that $376,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will...
Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly...
Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly contribution format income statement follows: Department Total Hardware Linens Sales $ 4,290,000 $ 3,170,000 $ 1,120,000 Variable expenses 1,262,000 851,000 411,000 Contribution margin 3,028,000 2,319,000 709,000 Fixed expenses 2,180,000 1,310,000 870,000 Net operating income (loss) $ 848,000 $ 1,009,000 $ (161,000 ) A study indicates that $379,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue...
Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly...
Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly contribution format income statement follows: Department Total Hardware Linens Sales $ 4,080,000 $ 3,020,000 $ 1,060,000 Variable expenses 1,321,000 909,000 412,000 Contribution margin 2,759,000 2,111,000 648,000 Fixed expenses 2,260,000 1,400,000 860,000 Net operating income (loss) $ 499,000 $ 711,000 $ (212,000 ) A study indicates that $379,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT