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Category > Accounting Posted 15 Aug 2017 My Price 13.00

Texarkana Corporation

Texarkana Corporation assembles various components used in the computer industry. The company's major product, a disk drive, is the result of assembling three parts: JR1163, JY1065, and DC0766. The following information relates to activities of April:

•      Beginning work-in-process inventory: 3,000 units, 80 percent complete as to conversion; cost,

$293,940 (direct material, $230,000; conversion, $63,940).

•      Production started: 27,000 units.

•      Production completed: 26,000 units.

•      Ending work-in-process inventory: 4,000 units, 45 percent complete as to conversion.

•    Direct material used: JR1163, $225,000; JY1065, $710,000; DC0766, $455,000.

•      Hourly wage of direct laborers, $21; total direct-labor payroll, $134,274.

•      Overhead application rate: $69 per direct-labor hour.

All parts are introduced at the beginning of the manufacturing process; conversion cost is incurred uniformly throughout production.

Required:

1.      Calculate the total cost of direct material and conversion during April.

2.      Determine the cost of goods completed during the month.

3.      Determine the cost of the work-in-process inventory on April 30.

4.      With regard to the ending work-in-process inventory:

a.      How much direct-material cost would be added to these units in May?

b.      What percentage of conversion would be performed on these units in May?

5.      Assume that the disk drive required the addition of another part (TH55) at the 75 percent stage of completion. How many equivalent units with respect to part TH55 would be represented in April's ending work-in-process inventory?

Answers

Maurice Tutor
(5)
Status NEW Posted 15 Aug 2017 09:08 AM My Price 13.00

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