Question

Miller Outdoor Equipment (MOE) makes four models of tents. The model names are Rookie, Novice, Hiker, and Expert. MOE manufactures the tents in two departments: Stitching and Customizing. All four models are processed initially in Stitching where all material is assembled and sewn into a basic tent. The Rookie model is then transferred to finished goods. After processing in Stitching, the other three models are transferred to Customizing for additional add-ons, and then transferred to finished goods. There were no beginning work-in-process inventories on August 1. Data for August are shown in the following table. Ending work in process is 40 percent complete in Stitching and 45 percent complete in Customizing. Conversion costs are allocated based on the number of equivalent units processed in each department. Units started Units completed in Stitching Units completed in Customizing Materials Total Rookie Novice Hiker Expert 760 560 470 250 685 510 420 210 485 400 190 $62,690 $22,800 $12,880 $15,510 $11,500 Conversion costs: Stitching Customizing Total conversion costs $50, 260 29,000 $ 79,260 Required: a. What is the unit cost of each model transferred to finished goods in August? b. What is the balance of the Work-in-Process Inventory on August 31 for Stitching? For Customizing? Complete this question by entering your answers in the tabs below. Required A Required B What is the unit cost of each model transferred to finished goods in August? (Round intermediate calculations to nearest whole number.)

Answer 1

B с D E F Rookie Balance 760 685 Stiching Novice Hiker 560 470 510 420 50 50 20 20 530 440 $26.30 $26.30 75 Expert 250 210 40 16 226 $26.30 40 30 715 $26.30 Balance A 37 38 Particulars 39 40 Unit started 41 Less: Unit completed 42 Ending WIP 43 WIP 40% complete stiching 44 Equivalent unit 45 Stiching cost per unit 46 47 Particulars 48 49 Unit started 50 Less: Unit completed 51 Ending WIP 52 WIP 45% complete stiching 53 Equivalent unit 54 Stiching cost per unit 55 56 Particulars 57 58 Materials cost 59 Units started 100% 60 Material cost per unit 61 Add: Stiching cost per unit 62 Add: Customizing cost per unit 63 Unit cost per unit Novice 560 485 75 33.75 519 $24.84 Customizing Hiker Expert 470 250 400 190 70 60 31.50 27.00 432 217 $24.84 $24.84 60 Stiching Rookie Novice Hiker Expert $22,800.00 $12,880.00 $15,510.00 $11,500.00 760 560 470 250 $30.00 $23.00 $33.00 $46.00 $26.30 $26.30 $26.30 $26.30 $24.84 $24.84 $24.84 $56.30 $74.15 $84.15 $97.15 GA

A B с D E F 420 Stiching Novice Hiker Expert Balance 560 470 250 510 210 =C40-C41 =D40-D41 =E40-E41 =SUM(E42 B42:E42) =C42*40% =D42*40% =E42*40% =C41+C43 =D41+D43 =E41+E43 =50260/SUM(B44:E44) =50260/SUM(B44:E44) =50260/SUM(B44:E44) 37 38 Particulars 39 Rookie 40 Unit started 760 41 Less: Unit completed 685 42 Ending WIP =B40-B41 43 WIP 40% complete stiching =B42*40% 44 Equivalent unit =B41+B43 45 Stiching cost per unit 1=50260/SUM(B44:E44) 46 47 Particulars 48 Novice 49 Unit started 560 50 Less: Unit completed 485 51 Ending WIP =B49-B50 52 WIP 45% complete stiching =B51*45% 53 Equivalent unit =B50+B52 54 Stiching cost per unit =29000/SUM(B53:D53) 55 56 Particulars 57 Rookie 58 Materials cost 22800 59 Units started 100% 760 60 Material cost per unit =B58/B59 61 Add: Stiching cost per unit =B45 62 Add: Customizing cost per unit 63 Unit cost per unit =SUM(B60:B62) Customizing Hiker Expert Balance 470 250 400 190 =C49-C50 =D49-D50 =SUM(D51 B51:D51) =C51*45% =D51*45% =C50+C52 =D50+D52 =29000/SUM(B53:D53) =29000/SUM(B53:D53) Novice 12880 560 =C58/C59 =C45 =B54 =SUM(C60:C62) Stiching Hiker 15510 470 =D58/D59 =D45 =C54 =SUM(D60:062) Expert 11500 250 =E58/E59 =E45 =D54 =SUM(E60:E62) GA

	Work-in-Process Inventory
Stiching	40
Customizing	60