Chain Gang mass produces beaded necklaces. Production occurs in three sequential
ID: 2391983 • Letter: C
Question
Chain Gang mass produces beaded necklaces. Production occurs in three sequential production departments: Stringing, Clasping, and Packaging. At the beginning of the period in Clasping, 1,400 physical units were in beginning inventory. During the period, 1,000 units were transferred in from the previous department. At the end of the period, 1,800 units remained in ending inventory. Additional information is as follows Total Equivalent Units Cost per Equivalent Unit Transferred in Direct Material Conversion 2,400 2,400 1,000 $9.60 $3.00 $2.50 What percentage complete are the units in Ending Inventory in the Clasping Department with respect to Direct Material? ? A. 42% ? B. 75% °C, 096 D. 100% ? E. 56% . (round to The costs assigned to units in the Clasping Department's ending inventory are $1 nearest dollar) The costs transferred to Packaging during the period equal (round to nearest dollar)Explanation / Answer
Ending inventory percentage completion in respect to direct material = 100%
Cost assigned to ending inventory = (9.6*1800+3*1800+400*2.5) = $23680
Cost transferred to packaging during the year = (9.6+3+2.5)*600 = $9060