Question

-------------HOMEWORK ASSIGNMENT ---------- Wallpaper of Texas manufacturers rolls of wallpaper and has processing departments: spinning, dyeing and cutting. Manufacturing begins in the spinning department and moves to the dyeing department where additional material from the raw material inventory is added along with conversion costs as the rolls dyed. All materials for the dyeing process are added at the beginning of work in the dyeing department. Conversion costs (manufacturing overhead and direct labor) are added evenly throughout the dyeing process. The FIFO method is used. EACTS: Assume that the dyeing department began the month of April with 70 units in its Work in Process inventory (unfinished from March). Although all of the material is already in the 70 units, not all of the conversion work was done. Work (Conversion Costs) on these beginning units was 20% complete at the beginning of April. During the month, 550 units were transferred in to the dying department. At the end of the month, 140 of the units started were still in process; dyeing work (Conversion Costs) on these units was 80% complete. The available information is as follows for the Dyeing department: Data Gathered UNITS (Rolls of Wallpaper)) Beginning Work in Process Inventory Transferred in from spinning in April Completed during April Ending Work in Process Inventory(80% complete for conversion work) 70 sheets 550 sheets 480 sheets 140 sheets COSTS Refer back here to the Data Gathered page frequently as you move through the next several pages. Notice all the details. April beginning Dyeing dept. Work in Process Inventory (cost is made up of transferred in $4,000 plus March dyeing materials cost $1.400 & conversion cost $5,300) Transferred in from the spinning department in April $ 23,280 Direct Materials Cost added during April: $ 14,100 Conversion Costs during April (Direct Labor $8,725; Manufacturing Overhead $43,991) $ 52,716

Answer 1

Answer is given step by step below

Cost of units transferred out includes 3 costs Opening WIP cost Cost incurred on completing balance during the period ( Conversion cost in this period) Cost of units completed 1- a Total Units To Account for Opening work in process Transferred in from Spinning department Total Units To Account for EUP Transferred in Units Equivalent units EUP % EUP Materials Materials Conversion Conversion 56 410 410 112 140 Units Transferred Total units accounted for In Units Completed during Period: Opening work in process 70 Units completed and transferred to cutting depart| 410 100% Units in Ending WIP Inventory 100% Total units accounted for 620 Cost per equivalent unit of production Current Period Costs Total cost Costs Equivalent units of production EUP 1- b Cost per equivalent unit of production (rounded to 2 decimal places) ecimal places) 578 100% 140 100% 550 Transferred in $23,280 $23,280 Costs 550 EUP $42.33 80% 100% 140 80% 550 Materials $14,100 $14,100 Costs 550 EUP $25.64 Conversion Total Cost $52,716 $90,096 $52,716 A 578 B $91.20 A/B Cost to Account for: Cost from Beginning WIP Inventory Transferred in form Spinning department Direct Material cost Conversion cost Total $10,700 $23,280 $14,100 $52,716 $100,796 EUP Cost per EUP Total Cost Total Cost accounted for: 1- Cost of units transferred out to Cutting department Opening WIP Cost incurred during the period on Opening WIP Conversion $10,700 $91.20 $5,107 410 $42.33 $25.64 $91.20 $17,354 $10,511 $37,394 410 $81,066 Transferred in Cost Direct Material Conversion Total cost transferred out 1-d Costs of ending work in process Transferred in Cost Direct Material Conversion Total cost of ending Work in process Total costs accounted for 140 140 112 Cost per EUP $42.33 $25.64 $91.20 Total Cost $5,926 $3,589 $10,215 $19,730 $100,796