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Category > Management Posted 21 Oct 2017 My Price 8.00

Plaid-Clad manufactures

Plaid-Clad manufactures golf bags in a two-department process: Assembly and Finishing. The Assembly Department uses weighted average costing; the percentage of completion of overhead in this department is unrelated to direct labor. The Finishing Department adds hardware to the assembled bags and uses FIFO costing; overhead is applied in this department on a direct labor basis. For June, the following production data and costs were gathered:

Assembly Department: Units

    

Beginning WIP Inventory (100% complete for DM;

  

250

40% complete for DL; 30% complete for OH)

    

Units started

  

8,800

Ending WIP Inventory (100% complete for DM;

  

400

70% complete for DL; 90% complete for OH)

    

Assembly Department: Costs

DM

DL

OH

Total

Beginning WIP Inventory

$ 3,755

$ 690

$ 250

$ 4,695

Current period

100,320

63,606

27,681

191,607

Total costs

$104,075

$64,296

$27,931

$196,302

Finishing Department: Units

    

Beginning WIP Inventory (100% complete for transferred in;

  

100

15% complete for DM; 40% complete for conversion)

    

Units transferred in

  

8,650

Ending WIP Inventory (100% complete for transferred in;

  

200

30% complete for DM; 65% complete for conversion)

    

Finishing Department: Costs

Transferred In

DM

Conversion

Total

Beginning inventory

$ 2,176

$ 30

$ 95

$ 2,301

Current period

188,570

15,471

21,600

225,641

Total costs

$190,746

$15,501

$21,695

$227,942
             

Required:

a. Prepare a cost of production report for the Assembly Department.

b. Prepare a cost of production report for the Finishing Department.

c. Prepare T-accounts to show the flow of costs through the Assembly and Finishing Departments.

d. Prepare the journal entries for the Finishing Department for June.

Answers

Maurice Tutor
(5)
Status NEW Posted 21 Oct 2017 12:10 PM My Price 8.00

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