Answer:
a.
Production Cost Report | |||
Flow of production units | Equivalent Units | ||
Physical Units | Conversion Units | ||
Units to be accounted for: | |||
Beginning WIP inventory | 300 | ||
Units started this period | 2700 | ||
Total units to be accounted for | 3000 | ||
Units accounted for: | |||
Units completed and transferred out: | |||
From beginning inventory | 300 | 120 | [300*40%] |
Started and completed currently | 2550 | 2550 | [2550*100%] |
Units in ending WIP inventory | 150 | 30 | [150*20%] |
Total units accounted for | 3000 | 2700 |
b.
Cost of equivalent unit for current units introduced = 10800/ 2700 = $4
Work in Process | |||
Debit | Credit | ||
Beginning Balance | 576 | Finished goods | 11256 |
[120units *4 + 10800+ 576] | |||
Conversion cost | 10800 | ||
Ending balance | 120 | ||
[30units*4] |
Finished Goods | |||
Debit | Credit | ||
Beginning Balance | 0 | ||
Work in Process | 11256 | ||
Ending balance | 11256 |
Various Payables | |||
Debit | Credit | ||
Beginning Balance | 0 | ||
Conversion | 10800 | ||
Ending balance | 10800 |
In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local...
In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sells the products at cost. The direct materials costs are zero, but the operation requires the use of direct labor and overhead. The company uses a process costing system and tracks the processing volume and costs incurred in each period. At the start of the current period, 400 towels were in process and were 60 percent complete. The costs incurred were...
local thrift shops. In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale the operation requires the use of direct labor and overhead. The company uses a process costing system and tracks the processing volume and costs incurred in each period. At the start of the current period, 350 towels were in process and were 60 percent complete. The costs incurred were $779. During the month, costs of $27,600 were incurred, 4,600 towels were started, and...
its Department R. Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sells the products at cost. The direct materials costs are zero, but the tracks the processing volume and costs incurred in each period. At the start o- the current period, 300 towels were in process and were 60 percent complete. The costs incurred were $186. During the month, costs of $10.800 were incurred, 3.600 towels were started, and 150 towels were still...
In its Department R, Recyclers, Inc., processes donated scrap cloth Into towels for sale in local thrift shops. It sells the products at cost. The direct materials costs are zero, but the operation requires the use of direct labor and overhead. The company uses a process costing system and tracks the processing volume and costs incurred in each period. At the start of the current period, 300 towels were in process and were 60 percent complete. The costs incurred were...
In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sells the products at cost. The direct materials costs are zero, but the operation requires the use of direct labor and overhead. The company uses a process costing system and tracks the processing volume and costs incurred in each period. At the start of the current period, 200 towels were in process and were 60 percent complete. The costs incurred were...
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