The Morgan Models Company manufactures replica plastic airplane and motorized vehicle models. During October, the firm's...

The Morgan Models Company manufactures replica plastic airplane and motorized vehicle models. During October, the firm's Assembly Department started production of 60,000 models. During the month, the firm completed 66,000 models and transferred them to the Finishing Department. The firm ended the month with 22,000 models in ending inventory. There were 28,000 models in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing is used by Morgan. Beginning work in process was 25% complete as to conversion costs while ending work in process was 50% complete as to conversion costs.

Beginning Inventory:
Direct materials costs: $39,200
Conversion costs: $30,800
Manufacturing costs added during the accounting period:
Direct materials costs: $90,000
Conversion costs: $280,000

Required : What is the cost of the goods transferred out during October?

*Asker notes*

I have figured out the setup and how to find equivalent units, I'm just not sure how to find the cost of the goods transferred out. Here's what I have so far:

	Units	Direct Materials	Conversion
Beginning Inventory	28,000
Direct Materials		28,000
Conversion			7,000
Started During Period	60,000
To Account For:	88,000
Completed	66,000	66,000	66,000
Ending Inventory	22,000
Direct Materials		22,000
Conversion			11,000

Equivalent Units:

Direct Materials: 66,000 + 22,000 - 28,000 = 60,000

Conversion: 66,000 + 11,000 - 7,000 = 70,000

Expert Solution

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.

ekkarill92 answered 1 year ago

A small plastic airplane that can purchased at a store for $6 Plastic models of this...

A small plastic airplane that can purchased at a store for $6 Plastic models of this type are made using an injection molding machine. A die is created out of special steel in the shape of the vehicle. Other molds are used for the wheels and other parts. Molten plastic, usually styrene, is pumped into the mold under pressure which forms the body of the vehicle. It is ejected from the mold, allowed to cool and then is later painted,...

Jane industries manufactures plastic toys. the company uses the FIFO processing costing system. During October, Janes...

Jane industries manufactures plastic toys. the company uses the FIFO processing costing system. During October, Janes Fabrication department started work on 10,000 models. During the month, the company completed 11,000 models, and transferred them to the distribution department. The company ended the month with 1500 models in ending inventory. There were 2500 models in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. Beginning...

Sleepy chairs company manufacturers a standard recliner. During October, the firm's Assembly Department started production of...

Sleepy chairs company manufacturers a standard recliner. During October, the firm's Assembly Department started production of 85,000 chairs. During the month, the firm completed 95,000 chairs, and transferred them to the Finishing Department. The firm ended the month with 10,000 chairs in ending inventory. There were 20,000 chairs in beginning inventory. The number of chairs started and completed in October is 75,000 chairs. True False

A Rest a lot chair company manufactures a standard recliner. During february, the firm's assembly department...

A Rest a lot chair company manufactures a standard recliner. During february, the firm's assembly department started a standard production of 75,000 chairs. During the month the firms completed 80,000 chairs and transfered them to the Finishing Department. The firm ended the month with 10,000 chairs in ending inventory. There were 15,000 chairs in beginning inventory. All direct materials cost are added at the beginning of the production process. The FIFO method of process costing is used by Rest a...

Carleton Closures, Inc., manufactures clamps used in the overhead bin latches of several leading airplane models....

Carleton Closures, Inc., manufactures clamps used in the overhead bin latches of several leading airplane models. Greg Poole, president of Carleton Closures, Inc., has gathered the following cost information from the company’s accounting records for the latest month of operations. Advertising $25,000 Fire insurance premium for the factory building $6,250 Sales office utilities $2,500 Air filters for the buffing machines used to produce the clamps $1,875 Aluminum used to produce the clamps $37,500 Rent on the factory building $10,000 Freight...

MapleTown Co., manufactures clamps used in the overhead bin latches of several Bobble airplane models. Jimmy...

MapleTown Co., manufactures clamps used in the overhead bin latches of several Bobble airplane models. Jimmy Bacon, president of MapleTown Co., has gathered and provided you the following cost information from the company’s accounting records for the latest month of operations: Advertising:$25,000 Fire insurance premium for the factory building:$6,250 Sales office utilities:$2,500 Air filters for the buffing machines used to produce the clamps:$1,875 Aluminum used to produce the clamps:$37,500 Rent on the factory building:$10,000 Freight to ship the clamps to...

XYZ chair company manufactures a standard recliner. During February, the firm's Assembly Department started production of...

XYZ chair company manufactures a standard recliner. During February, the firm's Assembly Department started production of 75,000 chairs. During the month, the firm completed 80,000 chairs, and transferred them to the Finishing Department. The firm ended the month with 10,000 chairs in ending inventory. There were 15,000 chairs in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing...

Rebecca's Pet Supply Corporation manufactures two models of crates, plastic and wire. The following activity and...

Rebecca's Pet Supply Corporation manufactures two models of crates, plastic and wire. The following activity and cost information has been compiled: Number of Number of Number of Product Setups Components Direct Labor Hours Plastic 4 12 300 Wire 6 18 200 Overhead costs $50,000 $75,000 Assume a traditional costing system applies the $125,000 of overhead costs based on direct labor hours. a. What is the total amount of overhead costs assigned to the plastic crate? b. What is the total amount of overhead costs assigned to the wire crate? Assume an activity-based costing system is...

The following is a summary of the May 2016 operations of Reagan Company that makes and sells airplane models.

The following is a summary of the May 2016 operations of Reagan Company that makes and sells airplane models. Suppose that the company uses the FIFO method. Physical Units Direct Materials Conversion Costs WIP, beginning inventory 28,000 $39,200 $30,800 Degree of completion for BI 100% 25% Started in May 60,000 Completed and transferred out in May 66,000 WIP, ending inventory 22,000 Degree of completion for EI 100% 50%...

The Rest-A-Lot chair company manufactures a standard recliner. During February, the firm's Assembly Department started production...

The Rest-A-Lot chair company manufactures a standard recliner. During February, the firm's Assembly Department started production of 75,000 chairs. During the month, the firm completed 80,000 chairs. The firm ended the monh with 10,000 chairs in ending inventory. There were 15,000 chairs in beginning inventory. All directy material costs are added at the beg. of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing is used by Rest-a-Lot. Beginning work...

Question