Question

In: Accounting

Problem Information: Intense Co. manufactures a product that uses two production departments. Units are begun in...

Problem Information:

Intense Co. manufactures a product that uses two production departments. Units are begun in the Mixing Department and then transferred to the Finishing Department.

Below is information related to Intense Co.’s Mixing Department during the current period:

The Mixing Department began the period with 50,000 units of beginning inventory, costing $225,000.  

The $225,000 consisted of $90,000 of materials cost and $135,000 of conversion costs.

The units in beginning inventory were 40% complete with regard to materials and 50% complete with regard to conversion costs.

During the period an additional 300,000 units were started in the Mixing Department.

Costs added to production during the period consisted of $785,000 of materials and $560,000 of conversion costs.

As of the end of the period, 25,832 units were still unfinished and in work in process. The units were 70% complete with regard to materials and 20% complete with regard to conversion costs.

Required:

For the Intense Company Mixing Department:

1. Compute the number of units transferred to the Finishing Department.

2. Use the weighted average method to compute equivalent units of production for materials and for conversion.

3. Compute the cost per equivalent unit for materials and for conversion that Intense Company will use to assign costs to units of production.

4. Assign costs to units transferred to the Finishing Department and units in ending inventory.

5. Prepare a Cost Reconciliation Report for the Mixing Department.

6. Prepare the journal entry to record the cost of the units transferred out of the Mixing Department and into the Finishing Department

Solutions

Expert Solution

Calculations:

For any queries or doubts related to format or any values please post in comment section, I would take that up.


Related Solutions

Intense Co. manufactures a product that uses two production departments. Units are begun in the Mixing...
Intense Co. manufactures a product that uses two production departments. Units are begun in the Mixing Department and then transferred to the Finishing Department. Below is information related to Intense Co.’s Mixing Department during the current period: ·       The Mixing Department began the period with 50,000 units of beginning inventory, costing $225,000. The $225,000 consisted of $90,000 of materials cost and $135,000 of conversion costs. The units in beginning inventory were 40% complete with regard to materials and 50% complete with...
Equivalent Units of Production Units of production data for the two departments of Pacific Cable and...
Equivalent Units of Production Units of production data for the two departments of Pacific Cable and Wire Company for November of the current fiscal year are as follows: Drawing Department Winding Department Work in process, November 1 6,900 units, 20% completed 3,600 units, 80% completed Completed and transferred to next processing department during November 94,500 units 93,200 units Work in process, November 30 5,200 units, 45% completed 4,900 units, 20% completed a. If all direct materials are placed in process...
Equivalent Units of Production Units of production data for the two departments of Continental Cable and...
Equivalent Units of Production Units of production data for the two departments of Continental Cable and Wire Company for November of the current fiscal year are as follows: Drawing Department Winding Department Work in process, November 1 6,200 units, 50% completed 1,800 units, 70% completed Completed and transferred to next processing department during November 84,900 units 84,300 units Work in process, November 30 4,700 units, 75% completed 2,400 units, 20% completed a. If all direct materials are placed in process...
Equivalent Units of Production Units of production data for the two departments of Pacific Cable and...
Equivalent Units of Production Units of production data for the two departments of Pacific Cable and Wire Company for November of the current fiscal year are as follows: Drawing Department Winding Department Work in process, November 1 7,400 units, 45% completed 3,700 units, 65% completed Completed and transferred to next processing department during November 101,400 units 100,100 units Work in process, November 30 5,600 units, 75% completed 5,000 units, 30% completed a. If all direct materials are placed in process...
Equivalent Units of Production Units of production data for the two departments of Continental Cable and...
Equivalent Units of Production Units of production data for the two departments of Continental Cable and Wire Company for November of the current fiscal year are as follows: Drawing Department Winding Department Work in process, November 1 7,800 units, 40% completed 1,900 units, 65% completed Completed and transferred to next processing department during November 106,900 units 106,200 units Work in process, November 30 5,900 units, 75% completed 2,600 units, 20% completed a. If all direct materials are placed in process...
Equivalent Units of Production Units of production data for the two departments of Continental Cable and...
Equivalent Units of Production Units of production data for the two departments of Continental Cable and Wire Company for June of the current fiscal year are as follows: Drawing Department Winding Department Work in process, June 1 6,700 units, 50% completed 3,800 units, 65% completed Completed and transferred to next processing department during June 91,800 units 90,400 units Work in process, June 30 5,100 units, 85% completed 5,200 units, 20% completed a. If all direct materials are placed in process...
Equivalent Units of Production Units of production data for the two departments of Continental Cable and...
Equivalent Units of Production Units of production data for the two departments of Continental Cable and Wire Company for November of the current fiscal year are as follows: Drawing Department Winding Department Work in process, November 1 6,200 units, 35% completed 3,100 units, 65% completed Completed and transferred to next processing department during November 84,900 units 83,800 units Work in process, November 30 4,700 units, 65% completed 4,200 units, 30% completed a. If all direct materials are placed in process...
Tamar Co. manufactures a single product in two departments. All direct materials are added at the...
Tamar Co. manufactures a single product in two departments. All direct materials are added at the beginning of the Forming process. Conversion costs are added evenly throughout the process. During May, the Forming department started 25,650 units and transferred 26,700 units of product to the Assembly department. Its 3,900 units of beginning work in process consisted of $20,700 of direct materials and $262,440 of conversion costs. It has 2,850 units (100% complete with respect to direct materials and 80% complete...
Tamar Co. manufactures a single product in two departments. All direct materials are added at the...
Tamar Co. manufactures a single product in two departments. All direct materials are added at the beginning of the Forming process. Conversion costs are added evenly throughout the process. During May, the Forming department started 24,750 units and transferred 25,700 units of product to the Assembly department. Its 3,700 units of beginning work in process consisted of $20,500 of direct materials and $253,440 of conversion costs. It has 2,750 units (100% complete with respect to direct materials and 80% complete...
Tamar Co. manufactures a single product in two departments. All direct materials are added at the...
Tamar Co. manufactures a single product in two departments. All direct materials are added at the beginning of the Forming process. Conversion costs are added evenly throughout the process. During May, the Forming department started 30,150 units, and transferred 31,700 units of product to the Assembly department. Its 4,900 units of beginning work in process consisted of $146,355 of direct materials and $990,512 of conversion costs. It has 3,350 units (100% complete with respect to direct materials and 80% complete...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT