. Baja Corporation manufactures car seats for children. The car seats are produc
ID: 2498303 • Letter: #
Question
. Baja Corporation manufactures car seats for children. The car seats are produced in two separate departments Assembly and Finishing. The following information was obtained for the month of October: (use spreadsheet)
Assembly Department:
Direct material is added at the beginning of the process.
Beginning units in process ----- 3,350 Ending units in process ----- 2,680
Direct labor -------------- 70% complete Direct labor------------- 35% complete
Factory overhead -------- 70% complete Factory overhead------- 35% complete
Units started---------- 42,000
Beginning work in process Costs: Costs added during October.
Direct material------$12,060 Direct Material---------$ 157,500
Direct Labor---------$26,264 Direct Labor------------$ 483,200
Factory overhead----$40,200 Factory overhead-------$ 630,000
Prepare a cost summary sheet for Baja Corporation using the FIFO method.
Explanation / Answer
Cost Summary for bajaj October month cost Summary Particulars Begginning addition End ( Begginig +addition- Closing) Units amount ($) Units amount ($) Units amount ($) amount ($) (A) (a) (b) ( c) (B)=(b)/ (a) * ( c) (A)+(b)- (B) Direct Material ( 100%) 3350 12060 42000 157500 2680 10050 159510 Direct labour 2345 26264 42000 483200 938 10791.47 498672.5 Factory OH 2345 40200 42000 630000 938 14070 656130 Cost of Finished goods 1314313