Insert Citations Citation , Bibliography\" Insert Insert Table Cross-reference M
ID: 2578345 • Letter: I
Question
Insert Citations Citation , Bibliography" Insert Insert Table Cross-reference Ma Caption of Figures En This project studies produet costing using a process costing system. Learning objectives 1) Use the weighted average method of process costing 2) Apply process costing methods to cases with transferred in costs. Directions The Lamarie Factory manufactures expensive boots in a twn department production environment. Production starts in the tanning department and is completed in the finishing department. All direct materials are added in the tanning department. A partial list of data for the month follows: Beginning work in process Units % complete as to direct materials % complete as to conversion costs Direct materials /Transferred in costs Conversion costs Tannin not available 1 00% 40% 6,000 $18,000 4,000 100% $7,000 $10,000 Units started in production Units completed and transferred out Direct materials/Transferred in costs added Conversion costs added Costs transferred out not available 16,000 $18,000 $32,000 $50,000 not available 18,000 not available $19,000 not available Ending work in process Units % Complete as to direct materials % Complete as to conversion costs not available 100% not available 2,000 30% Required: Prepare a units of production schedule for the FINISHING department that details units to account for, units accounted for and equivalent full units of production. A. B. Prepare a costs of production schedule for the FINISHING department that details total costs to account for, costs per eguivalent full unit of prodaction and total costs accounted for. (Note: there will be a small rounding difference in the cost reconciliation)Explanation / Answer
20200
Finishing Department Direct Material convesion cost opening work in progress 0 1600 100% completed 60% competed Current Month Production 18000 18000 closing work in progress 2000 600 100% completed 30% completed Equivelent units 2000020200