Question

In: Accounting

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 to conversion. Direct materials for Finishing the units are added near the end of the process and conversion costs are added evenly throughout. Beginning inventories included $28,000 for transferred-in costs and $32,000 for conversion costs. Ending inventory was 30% complete. Additional information about the two departments is in the table below:

Cutting

Finishing

Beginning work-in-process units

20,000

26,000

Units started this period

60,000

Units transferred this period

66,000

Ending work-in-process units

20,000

Material costs added

$48,000

$38,000

Conversion costs

$28,000

$69,500

Transferred-out cost

$130,000

Required:

  1. Prepare a production cost worksheet, using WEIGHTED AVERAGE for the finishing department. Round to two decimal places in calculations

  2. Prepare the journal entry to recognise COGM for the period transferred out of the Finishing Department.

  3. Explain the effect on the asset account Finished Goods, in periods of rising prices if using a FIFO method of process costing versus WEIGHTED average method of process costing and there are ending inventories. (1 Mark) What is a benefit that

Solutions

Expert Solution

Solution:

Hope this helps! In case of any clarifications, kindly use the comment box below

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products....
Lexington Company produces baseball bats and cricket paddles. 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 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...
Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products....
Lexington Company produces baseball bats and cricket paddles. 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 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...
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...
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...
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%...
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,...
The Sosa Company produces baseball gloves with a degree of financial leverage of 1.66 based on...
The Sosa Company produces baseball gloves with a degree of financial leverage of 1.66 based on the company’s income statement for 2004. What does that mean in its company's risk?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT