Question

Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington manufactures the carts in two assembly departments: Department A and Department B. All three models are processed initially in Department A, where all material is assembled. The X-10 model is then transferred to finished goods. After processing in Department A, the X-20 and X-40 models are transferred to Department B for final assembly, and then transferred to finished goods. There were no beginning work-in-process inventories on April 1. Data for April are shown in the following table. Ending work in process is 20 percent complete in Department A and 50 percent complete in Department B. Conversion costs are allocated based on the number of equivalent units processed in each department. Total X-10 X-20 X-40 Units started 460 370 240 Units completed in Department A 400 250 170 Units completed in Department B 230 155 Materials $ 346,750 $ 34,500 $ 120,250 $ 192,000 Conversion costs: Department A $ 282,750 Department B 40,250 Total conversion costs $ 323,000 Required: a. What is the unit cost of each model transferred to finished goods in April? b. What is the balance of work-in-process inventory on April 30 for Department A? Department B?

Answer 1

Req A
Unit cost
X-10	395.40
X-20	745.40
X-40	1220.40
Req b
Work In Process Inventory
Department A	119,525
Department B	31,464
Working Notes: (Req A)
Product	Material Cost (1)	No. of Units (2)	Cost per Units (3) = (1)/(2)
X-10	34500	460	75
X-20	120250	370	325
X-40	192000	240	800
Conversion cost per equivalent Units - Dept.A
	Physical Units	Conversion cost
		Eq. Units
Flow of Units:
Units to be accounted for:
Beginning WIP inventory	0
Units started this period	1070
Total Units accounted for:	1070
Units accounted for:
Completed and transferred out	820	820
Units in ending Inventory	250	62.5
Total Units accounted for:	1070	882.5
	Total	Conversion Cost
Cost to be accounted for:
Cost in beginning WIP	0	0
Current Period costs	282750	282750
Total cost to be accounted for:	282750	282750
Cost per equivalent Units
Conversion cost		320.40
Conversion cost per equivalent Units - Dept. B
	Physical Units	Conversion cost
		Eq. Units
Flow of Units:
Units to be accounted for:
Beginning WIP inventory	0
Units started this period	420
Total Units accounted for:	420
Units accounted for:
Completed and transferred out	385	385
Units in ending Inventory	35	17.5
Total Units accounted for:	420	402.5
	Total	Conversion Cost
Cost to be accounted for:
Cost in beginning WIP	0	0
Current Period costs	40250	40250
Total cost to be accounted for:	40250	40250
Cost per equivalent Units
Conversion cost		100.00
Cost of Units Transferred to Finished Goods	X-10	X-20	X-40
Unit Material Cost	75	325	800
Department A Conversion cost	320.40	320.40	320.40
Department B Conversion cost		100.00	100.00
Total	395.40	745.40	1220.40
Working Note(Req 2:)
WIP Ending Inventory balance
Department A
Material Cost	No. of Units	Unit Cost	Total Cost
X-10	60	75	4,500
X-20	120	325	39,000
X-40	70	800	56,000
Total material cost			99,500
Conversion costs	62.5	320.40	20,025
Total			119,525
Department B
Material Cost	No. of Units	Unit Cost	Total Cost
X-20	20	325	6,500
X-40	15	800	12,000
Total material cost			18,500
Conversion costs:
From Department A	35	320.4 ekkarill92 Next > < Previous Related Solutions Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington... Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington manufactures the carts in two assembly departments: Department A and Department B. All three models are processed initially in Department A, where all material is assembled. The X-10 model is then transferred to finished goods. After processing in Department A, the X-20 and X-40 models are transferred to Department B for final assembly, and then transferred to finished goods. There were no beginning work-in-process... Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington... Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington manufactures the carts in two assembly departments: Department A and Department B. All three models are processed initially in Department A, where all material is assembled. The X-10 model is then transferred to finished goods. After processing in Department A, the X-20 and X-40 models are transferred to Department B for final assembly, and then transferred to finished goods. There were no beginning work-in-process... Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington... Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington manufactures the carts in two assembly departments: Department A and Department B. All three models are processed initially in Department A, where all material is assembled. The X-10 model is then transferred to finished goods. After processing in Department A, the X-20 and X-40 models are transferred to Department B for final assembly, and then transferred to finished goods. There were no beginning work-in-process... Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington... Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington manufactures the carts in two assembly departments: Department A and Department B. All three models are processed initially in Department A, where all material is assembled. The X-10 model is then transferred to finished goods. After processing in Department A, the X-20 and X-40 models are transferred to Department B for final assembly, and then transferred to finished goods. There were no beginning work-in-process... Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington... Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington manufactures the carts in two assembly departments: Department A and Department B. All three models are processed initially in Department A, where all material is assembled. The X-10 model is then transferred to finished goods. After processing in Department A, the X-20 and X-40 models are transferred to Department B for final assembly, and then transferred to finished goods. There were no beginning work-in-process... Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington... Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington manufactures the carts in two assembly departments: Department A and Department B. All three models are processed initially in Department A, where all material is assembled. The X-10 model is then transferred to finished goods. After processing in Department A, the X-20 and X-40 models are transferred to Department B for final assembly, and then transferred to finished goods. There were no beginning work-in-process... Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington... Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington manufactures the carts in two assembly departments: Department A and Department B. All three models are processed initially in Department A, where all material is assembled. The X-10 model is then transferred to finished goods. After processing in Department A, the X-20 and X-40 models are transferred to Department B for final assembly, and then transferred to finished goods. There were no beginning work-in-process... MotoMover makes three models of motorized skateboards. At present, all indirect costs are applied to production... MotoMover makes three models of motorized skateboards. At present, all indirect costs are applied to production using a single predetermined overhead (OH) rate based on direct labour-hours. Management would like you to provide an analysis of the costs of manufacture of the three models that compares the present approach to costing with the ABC approach to costing. Management is not confident that its products are priced appropriately relative to its competitors. The following information has been assembled regarding the activity... 1.   You purchased 10 shares of Resorts, Inc. stock at a price of $40 a share... 1.   You purchased 10 shares of Resorts, Inc. stock at a price of $40 a share exactly one year ago. You have received dividends totaling $2 a share. Today, you sold your shares at a price of $50 a share. What is your total dollar return on this investment?        (a) $10       (b) $12       (c) $50       (d) $80 (e) $120 2.   Big Boy Equipment, Inc. is expected to pay an annual dividend in the amount of... Question 1 For the dataset: 20, 20, 10, 10, 40, 50, 20, 30, 10, 20, 50,... Question 1 For the dataset: 20, 20, 10, 10, 40, 50, 20, 30, 10, 20, 50, 60, 20, 30, 50, 20, 30, 40, 30, 30, 30, 50, 40 calculate the max, min, mode, median and mean.(20%) Draw a boxplot with inner and outer fence For the data in part (i), if the value 60 was replaced by 2000, what would you call this value in the dataset? What could be the explanation for such a value? How can you through... ADVERTISEMENT Subjects Accounting Advanced Math Anatomy and Physiology Biology Chemistry Civil Engineering Computer Science Economics Electrical Engineering Finance History Math Mechanical Engineering Operations Management Physics Psychology Statistics and Probability Nursing Other ADVERTISEMENT Latest Questions 4. The Apparel Company makes expensive polo-style men's and women's short-sleeve knit shirts at its plant... Design an experiment to determine the effect which commuting versus living on campus has on a... 1.     (a) Suppose Carter Chemical Company's management conducts a study and concludes that if Carter expands... 1.What are the four components of a process? What is the term that describes saving the... Propose an HR plan (including at least one measurable outcome) for three of the following areas.... Go fly a kite is considering making and selling custom kites in two sizes. The small... To automatically insert electronic components in printed circuit boards for a cell phone production line, a... ADVERTISEMENT About @ 2020 WizEdu