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
ekkarill92 answered 1 year agoRelated 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...
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