Cougar Carpet manufactures broadloom carpet in seven processes: Spinning, Dyeing
ID: 2507703 • Letter: C
Question
Cougar Carpet manufactures broadloom carpet in seven processes: Spinning, Dyeing, Playing, Spooling, Tufting, Latexing, and Shearing. In the Dyeing Department the direct matericals (dye) are add at the beginning of the proces. Conversion costs are incurred evenly thoughout the process. Information for march 2011 follows:
UNITS
beginning work process inventory- 20% complete as to conversion work -------- 55 rolls
Transferred- ub from spinning during March------------------------------------------------890 rolls
Completed during March--------------------------------------------------------------------------870 rolls
Ending work in porcess- 60% complete as to conversion work------------------------75 rolls
COST
Beginning work in process( transferred in cost, $1,770; materials cost, $2,365;conversion costs, $2710)------$6,845
Transferred- in from spinning during March-----------------------------------------------------------------------------------------$13,350
Materials Cost added during March----------------------------------------------------------------------------------------------------$38,270
Conversion cost added during March--------------------------------------------------------------------------------------------------$72,320
PREPARE THE MARCH PRODUCTION COST REPORT USING THE FIFO METHOD.
Explanation / Answer
Solution:
Cougar Carpet Dyeing Department Computation of Equivalent unit (FIFO) Particulars Physical units Prior department costs Material Conversion Units to be accounted for: Beginning WIP Inventory 55 Units started this period 890 Total unit to be accounted for 945 Units Accounted for: Units completed and transferred out From beginning inventoryPrior department and material - 0%
Conversion - 80% 55 0 0 44 Started and completed currently 815 815 815 815 Units in ending WIP
Prior department - 100%
Material - 100%
Conversion - 60% 75 75 75 45 Total units accounted for 945 890 890 904