Question

Required information [The following information applies to the questions displayed below.] Part 4 of 5 points Goodson Corporation assembles various components used in the telecommunications industry. The company's major product, a relay switch, is the result of assembling three parts: XY634, AA788, and GU321. The following information relates to activities of April: • Beginning work-in-process inventory: 4,000 units, 75 percent complete as to conversion; cost, $286,000 (direct materials, $220,000; conversion cost, $66,000). • Production started: 25,000 units. • Production completed: 24,000 units. • Ending work-in-process inventory: 5,000 units, 40 percent complete as to conversion. • Direct materials used: XY634. $267.000; AA788, $689,000: GU321, $448,000. • Hourly wage of direct laborers, $20; total direct-labor payroll, $126,500. • Overhead application rate: $60 per direct-labor hour. eBook Print References All parts are introduced at the beginning of Goodson's manufacturing process; conversion cost is incurred uniformly throughout production. 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? a. Direct material cost b. Percentage of conversion

Answer 1

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Solotion O cost of calculate during direct Material and the total April conversion particulars Work in process, April 1 thits started during April Toral units to account for physical units 10000 1 ODODD TODDD out during April 80000 30000 units completed y transfered Work in praess, April 30 Total units accounted for I low → D Determine the cost of goods completed during the month particulars physical loof completion W. Roto Conversion Earrivolent hits Direct Material Conversion 201) DODO TOO 000 LOOOO Work in process, April Units started during April Total whits to account for Units completed y transferred out doring April Work in process, April 30 Toral units accounted for 80000 1001 B0000 80000 10000 33 olat 30000 30 000 COODO 90000 110000 Toral equivalent units

(3 the cost Determine April 30 of the work in process inventory on particulars Direct Toral Materials Conversion Work in process, April Cost incorred during April Soral costs to account for(a) $ 22000 198000 $4500 158400 $26500 356400 9382900 → 220000 $ 162900 ODDD Exquivalent costs per onits (6) ensuitalent 90000 $ 81 unit (a) b 13.81 $ 2.00 o cost of goods completed & transferred out during Aprile 80000 * $ 3.81 number of ons transferred out total cost per to equivalent onit : $ 304800 cost remaining in April 30 work in process inventory : - Direct Material: = 30000x2000 (nooof eagoi talent cost per hits of direct eapuivalent material unit of : $ 60000 direct material conversion : 8) Dobox $ (no of equivalent Criti of cost per 2 equivalent $18100 converion conversion Total cost of April 30 workin $78100 → Process $ 304 800 Check cost Lost of of 78100 goods completed y transferred out April 30 work in process inventory cost accounted for $382900 Torat