Question

Problem 3-3A (Video) (Part Level Submission) Than Industries Inc, manufactures dorm furniture in separate processes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data for the first process in making a product are as follows. Cutting Department T12-Tables Production Data July Work in process units, July 1 Units started into production Work in process units, y31 Work in process percent complete 22.400 3.350 Cost DataJuly Work in process, July 1 Materials Labor Overhead 425,600 262,528 116,480 $804,608

need help ASAP

Answer 1

Solution

Costs accounted for:
Transferred out		$         704,480
Work in process, July 31
Materials	$         63,840
Conversion costs	$         36,288	$         100,128
Total costs		$         804,608

Working

Reconciliation of Units
A	Opening WIP	-
B	Introduced	22,400
C=A+B	TOTAL	22,400
D	Transferred	19,040
E=C-D	Closing WIP	3,360

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	19,040			100%	19,040.0	100%	19,040
Closing WIP	3,360			100%	3,360.0	60%	2,016
Total	22,400			Total	22,400.0	Total	21,056

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 0	$ 0	$ 0
Cost incurred during period		$ 425,600	$ 379,008	$ 804,608
Total Cost to be accounted for		$ 425,600	$ 379,008	$ 804,608
Total Equivalent Units		22,400	21,056
Cost per Equivalent Units		$                 19.00	$                   18.00

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 19.00	3,360	$          63,840.00	19,040	$ 361,760
Conversion cost	$ 18.00	2,016	$          36,288.00	19,040	$        342,720.00
TOTAL	$ 804,608	TOTAL	$ 100,128	TOTAL	$ 704,480