Question

In: Accounting

The New York Division of MVP Sports Equipment Company manufactures baseball gloves. Two production departments are...

The New York Division of MVP Sports Equipment Company manufactures baseball

gloves. Two production departments are used in sequence: the Cutting Department

and the Stitching Department. In the Cutting Department, direct material, consisting

of imitation leather is placed into production at the beginning of the process. Direct

labor and manufacturing overhead costs are incurred uniformly throughout the

process. The material is rolled to make it softer, and is then cut into the pieces

needed to produce baseball gloves. The predetermined overhead rate is 150% of

direct labor costs. MPV uses weighted average costing.

We have the following data about production in the Cutting Department:

Goods-in-Process, January 1, 2020

10,000 units

Direct Material-100% Complete

$40,000.00

Conversion (Labor & Overhead)- 50% Complete

120,000

Total cost of Goods in Process, January 1, 2020

$160,000.00

Units added in January 2020:

70,000 units

Costs added in January 2020:

Direct Material

$320,000

Direct Labor

723,840

Factory Overhead

1,028,160

Total costs added in January 2020

$2,072,000

Units in Goods-in-Process, January 31, 2020:

22,000 units

Direct Material-100% Complete

Conversion Costs-20% Complete

a.

Analyze the flow of units:

b.

Compute equivalent units.

c.

Compute the per unit costs: (Direct Material, Conversion, and Total)

d.

The value of Goods-in-Process in the Cutting Department on 1/31/2020 is:

e.

The value of Goods-in-Process transferred to the Stiching Department is:

Solutions

Expert Solution

a)

analysis and calculation of equivalent unit

Note = Conversion cost includes labour and overhead

From the above table

b)Equivalent no of units = .

material = 80000 units

Labour and overhead = 62400

c) Cost per equivalent unit =

Material = 4.5

Labour and overhead = 30

  
d)The value of Goods-in-Process in the Cutting Department on 1/31/2020 is:231000

  
e)The value of Goods-in-Process in the Cutting Department on 1/31/2020 is: 2001000

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

1. The New York Division of MVP Sports Equipment Company manufactures baseball gloves.  Two production departments are...
1. The New York Division of MVP Sports Equipment Company manufactures baseball gloves.  Two production departments are used in sequense: the Cutting Department and the Stitching Department.  In the Cutting Department, direct material, consisting of imitation leather is placed into production at the beginning of the process.  Direct labor and manufacturing overhead costs are incurred uniformly throughout the process.  The material is rolled to make it softer, and is then cut into the pieces needed to produce baseball gloves.  The predetermined overhead rate is 150%...
A company that makes baseball gloves produces them using 2 production departments. When the gloves are...
A company that makes baseball gloves produces them using 2 production departments. When the gloves are produced they first go through the Fabrication Department, which produces the pieces that are later assembled into a glove. After the Fabrication Department completes its work on the glove, the glove goes to the Assembly Department to finish putting the glove together. The following data is for the Assembly Department (the second department that works on the gloves) for the month of November: Units...
A company that makes baseball gloves produces them using 2 production departments. When the gloves are...
A company that makes baseball gloves produces them using 2 production departments. When the gloves are produced they first go through the Fabrication Department, which produces the pieces that are later assembled into a glove. After the Fabrication Department completes its work on the glove, the glove goes to the Assembly Department to finish putting the glove together. The following data is for the Fabrication Department for the month of June: Units in the beginning work-in-process inventory                              5,000 Units started...
A company that makes baseball gloves produces them using 2 production departments. When the gloves are...
A company that makes baseball gloves produces them using 2 production departments. When the gloves are produced they first go through the Fabrication Department, which produces the pieces that are later assembled into a glove. After the Fabrication Department completes its work on the glove, the glove goes to the Assembly Department to finish putting the glove together. The following data is for the Fabrication Department for the month of June: Units in the beginning work-in-process inventory                              5,000 Units started...
A company that makes baseball gloves produces them using 2 production departments. When the gloves are...
A company that makes baseball gloves produces them using 2 production departments. When the gloves are produced they first go through the Fabrication Department, which produces the pieces that are later assembled into a glove. After the Fabrication Department completes its work on the glove, the glove goes to the Assembly Department to finish putting the glove together. The following data is for the Fabrication Department for the month of June: Units in the beginning work-in-process inventory                              5,000 Units started...
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,...
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...
PART B. Problems 1.              The CINEDivision of OMAR Sports Equipment Companymanufactures baseball gloves in its Milwaukee plant.  Two...
PART B. Problems 1.              The CINEDivision of OMAR Sports Equipment Companymanufactures baseball gloves in its Milwaukee plant.  Two production departments are used in sequence: the Cutting Department and the Stitching Department.  In the Cutting Department, direct material consisting of imitation leather is placed into production at the beginning of the process.  Direct-labor and manufacturing overhead costs are incurred uniformly throughout the process.  The material is rolled to make it softer and then cut into the pieces needed to produce baseball gloves.                   Below is presented a...
Kelson Sporting Equipment, Inc., makes two different types of baseball gloves: a regular model and a...
Kelson Sporting Equipment, Inc., makes two different types of baseball gloves: a regular model and a catcher's model. The firm has 400 hours of production time available in its cutting and sewing department, 300 hours available in its finishing department, and 200 hours available in its packaging and shipping department. The production time requirements and the profit contribution per glove are given in the following table: Production Time (Hours) Model Cutting and Sewing Finishing Packaging and Shipping Profit/Glove Regular model...
Kelson Sporting Equipment, Inc., makes two different types of baseball gloves: a regular model and a...
Kelson Sporting Equipment, Inc., makes two different types of baseball gloves: a regular model and a catcher's model. The firm has 700 hours of production time available in its cutting and sewing department, 300 hours available in its finishing department, and 200 hours available in its packaging and shipping department. The production time requirements and the profit contribution per glove are given in the following table: Production Time (Hours) Model Cutting and Sewing Finishing Packaging and Shipping Profit/Glove Regular model...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT