1. 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 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% of
direct labor costs. MPV uses weighed 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) Anaylze the flow of units:

b) Compute equivalent units:

c)Compute the per units:

d)The value of Goods-inProcess in the cutting Department on 1/31/2020:

e)The value of Goods-In-Process transferred to the Stiching Department is:

Solutions

Expert Solution

Sollution a
Flow Of Production	Physical Unit
Work In process Beginning	10000
Add:- Started during current period	70000
To Account For	80000
Good unit completed and transferred out during current period
from Beginning work in process +Started And Completed	58000
work in process Ending	22000

Accounted for	80000

Sollution b
MVP Sports Equipment Company
Equivalent units of production (EUP)-Cutting Department: - Weighted Average method
Detail	Physical Units	%Material	EUP-Material	% Conversion	EUP- Conversion
Units Transferred Out	58000	100%	58000	100%	58000
units of Ending work in process	22000	100%	22000	20%	4400

Equivalent units of production			80000		62400

Sollution c
Cost per EUP		Total Production Cost	Direct Material	Conversion
Cost of beginning Work in Process		$160,000.00	$40,000.00	$120,000.00
Cost Addrd during the period		$2,072,000.00	$320,000.00	$1,752,000.00
Total Cost to account for		$2,232,000.00	$360,000.00	$1,872,000.00
/Equivalent units of Production			$80,000.00	$62,400.00
Cost per Equivalent unit of Production			$4.50	$30.00

Sollution d
value of Goods-inProcess in the cutting Department on 1/31/2020	EUP Direct Material	Total Production Cost	Direct Material	EUP Conversion	Conversion
d. Ending work in process(	22000	$231,000.00	$99,000.00	4400	$132,000.00
Total Costs accounted for	22000	$231,000.00	$99,000.00	4400	$132,000.00

Sollution e
value of Goods-In-Process transferred to the Stiching Department	EUP Direct Material	Total Production Cost	Direct Material	EUP Conversion	Conversion
e. Good units completed and transferred out
Good units completed and transferred out	58000	$2,001,000.00	$261,000.00	58000	$1,740,000.00
Total Costs accounted for	58000	$2,001,000.00	$261,000.00	58000	$1,740,000.00

ekkarill92 answered 1 year ago

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