Question

The Grand Northerm Furniture Company produces dining tables in a three stage processing, assembly, and staining Costs incurred in the Sawing Department during September are summarized as follows: Click the loon to view the costs) Siret materials Lumber) are added at the beginning of the sewing process, while son costs are nourred evenly throughout the September activity in the Sawing Department included sawing of 13,000 metres of lumber which were transferred to the Departments work began on 2000 metres of lumber, which on September 30 were 75of the way through the swing process Requirements

Answer 1

Part 1

Conversion costs added evenly throughout the process
Start	75% complete	100% Complete
Direct materials added		Units transferred out
13,000 units completed and transferred out
2,000 units incomplete

Part 2

Grand Northern Company Sawing Department Flow of Physical Units and Computation of Equivalent Units Month Ended September 30
Flow of production	Flow of Physical Units	Equivalent Units
		Direct Materials	Conversion Costs
Units accounted for:
Completed and Transferred out	13000	13000	13000
Plus: Ending work in process, September 30 (2000*75%)	2000	2000	1500
Total physical units accounted for	15000
Total equivalent units		15000	14500

Grand Northern Company Sawing Department Cost per Equivalent Unit Month Ended September 30
	Direct Materials	Conversion Costs	Total
Beginning Work in process	0	0	0
Plus: Cost added during September	1860000	304500	2164500
Total costs to account for	1860000	304500	2164500
Divided by: Total equivalent units	15000	14500
Cost per equivalent unit	$124	$21

Part 3

Grand Northern Company Sawing Department Cost Assignment Month Ended September 30
	Direct materials	Conversion	Total
Assigning Costs
a. Completed and transferred out	13000 x (124	+ 21 )	1885000
b. Ending work in process
Direct Materials	2000 x 124		248000
Conversion Costs		1500 x 21	31500
Total cost of Equivalent units in ending WIP, September 30			279500
Total costs accounted for			$2164500

Direct materials	1860000
Direct Labor	143000
Manufacturing overhead	161500
Total costs	$2164500

Part 4

Date	Accounts	Debit	Credit
	Work in process Inventory-Sawing	2164500
	Raw Materials Inventory		1860000
	Wages Payable		143000
	Manufacturing overhead		161500
	(to record direct materials, direct labor and manufacturing overhead assigned to sawing department)
	Work in process Inventory-Assembly	1885000
	Work in process Inventory-Sawing		1885000
	(to record the cost of meters of lumber completed and transferred out to the assembly department)