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In: Accounting
Vista manufactures tables at its factory plant in Milano. Direct materials are added at the beginning...
Vista manufactures tables at its factory plant in Milano. Direct materials are added at the beginning of the production cycle. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to undetectable materials defects. Spoiled units generally constitute 3% of the good units. Data for December 2018 are as follows: WIP, beginning inventory 22,700 units Direct materials (100% complete) Conversion costs (80% complete) Started during December 76,300 units Completed and transferred out 72,100 units WIP, ending inventory 18,100 units Direct materials (100% complete) Conversion costs (60% complete) Costs for December: $450,000 $8,000 $500,000 WIP, beginning Inventory: Direct materials Conversion costs Direct materials added Conversion costs added $151,000 $76,900 $231,400 $294,000 College of Business and Economics ACCT 401 – Advanced Managerial Accounting Spring 2020 (a) Compute the normal and abnormal spoilage in units. (b) Compute equivalent units for direct materials and conversion costs. (c) Calculate the cost per equivalent unit for direct materials and conversion costs. (Round the cost per unit calculation to the nearest cent; two decimals). (d) Assign costs to units completed and transferred out; to abnormal spoilage, and to units in ending work-in-process inventory.
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ekkarill92 answered 1 year agoRelated Solutions
Vista manufactures tables at its factory plant in Milano. Direct materials are added at the beginning...
Vista manufactures tables at its factory plant in Milano. Direct
materials are added at the beginning of the production cycle.
Conversion costs are incurred evenly throughout the production
cycle. Before inspection, some units are spoiled due to
undetectable materials defects. Spoiled units generally constitute
3% of the good units. Data for December 2018 are as follows: WIP,
beginning inventory 22,700 units Direct materials (100% complete)
Conversion costs (80% complete) Started during December 76,300
units Completed and transferred out 72,100 units...
Craft Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation...
Craft Concept manufactures small tables in its Processing
Department. Direct materials are added at the initiation of the
production cycle and must be bundled in single kits for each unit.
Conversion costs are incurred evenly throughout the production
cycle. Before inspection, some units are spoiled due to
nondetectible materials defects. Inspection occurs when units are
100% converted. Spoiled units generally constitute 5% of the good
units. Data for December 2019 are as follows:
WIP, beginning inventory
12/1/2019 20,000
units
Direct...
Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation...
Outose Concept manufactures small tables in its Processing
Department. Direct materials are added at the initiation of the
production cycle and must be bundled in single kits for each unit.
Conversion costs are incurred evenly throughout the production
cycle. Before inspection, some units are spoiled due to
nondetectible materials defects. Inspection occurs when units are
50% converted. Normally spoiled units generally constitute 4% of
the good units passing inspection. Data for December 2015 are as
follows:
WIP, beginning inventory 12/1/2015...
Great Kraft Mart manufactures small tables in its Processing Department. Direct materials are added at the...
Great Kraft Mart manufactures small tables in its Processing
Department. Direct materials are added at the initiation of the
production cycle and must be bundled in single kits for each unit.
Conversion costs are incurred evenly throughout the production
cycle. Spoiled units are identified when inspection occurs and
disposed off at zero value. Relevant data are provided below:
Inspection occurs when the units are 50% complete
Normal spoilage equals 5% of the good units
Production and cost...
Great Kraft Mart manufactures small tables in its Processing Department. Direct materials are added at the...
Great Kraft Mart manufactures small tables in its Processing
Department. Direct materials are added at the initiation of the
production cycle and must be bundled in single kits for each unit.
Conversion costs are incurred evenly throughout the production
cycle. Spoiled units are identified when inspection occurs and
disposed off at zero value. Relevant data are provided below:
Inspection occurs when the units
are
50%
complete
Normal spoilage equals
5% of the
good
units
...
Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation...
Outose Concept manufactures small tables in its Processing
Department. Direct materials are added at the initiation of the
production cycle and must be bundled in single kits for each unit.
Conversion costs are incurred evenly throughout the production
cycle. Before inspection, some units are spoiled due to
undetectable materials defects. Spoiled units generally constitute
44% of the good units.
Data for December 2017 are as follows:
WIP, beginning inventory 12/1/2017 22,700 units
Direct materials (100% complete)
Conversion costs (75% complete)...
South River Chemical manufactures a product called Zbek. Direct materials are added at the beginning of...
South River Chemical manufactures a product called Zbek. Direct
materials are added at the beginning of the
process, and conversion activity occurs uniformly throughout
production. The beginning work in process inventory is 60% complete
with respect to conversion; the ending inventory work in process
inventory is 20% complete. The following data pertain to
May:
Units
Work in process, May 1 15,000
Units started during May 60,000
Units completed and transferred out 68,000
Work in process, May 31 ...
In the Mixing Dept., the direct materials are added at the beginning of the process and...
In the Mixing Dept., the direct materials are added at the
beginning of the process and the conversion costs are incurred
evenly throughout the process. Work in process of the mixing Dept.
on March 1, 2018 consisted of 900 batches of crayons that were 60%
of the way through the production process.
The beginning balance in WIP Inventory - Mixng was $30,700 which
consited of $11,500 in direct materias cost and $19,200 in
conversion costs.
During March, 4600 batches were...
Bruton Inc. manufactures snowhshoes using a two-department process. Direct materials are added at the beginning of...
Bruton Inc. manufactures snowhshoes using a two-department
process. Direct materials are added at the beginning of the process
in both the Assembly Department and the Finishing Department.
Conversion costs are applied uniformly during both processing
departments. The following has been reported for the Finishing
Department for the month of October: Units in beginning work in
process (65% complete) 21,700 Units in ending work in process (75%
complete) 18,600 Units transferred in from Assembly in October
54,100 Costs in beginning work...
At OxyCorp, direct materials are added at the beginning of the process and conversions costs are...
At OxyCorp, direct materials are added at the beginning of the
process and conversions costs are uniformly applied. Other details
include
WIP beginning (55% for conversion)
13,700 units
Units started
125,000 units
Units completed and transferred out
116,500 units
WIP ending (35% for conversion)
22,200 units
Beginning WIP transfer costs
$40,000
Beginning WIP direct materials
$50,300
Beginning WIP conversion costs
$22,500
Costs of transfer costs added
$360,000
Costs of materials added
$412,000
Costs of conversion added
$301,000
Please calculate using...
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