Given the second process in a two-process manufacturer for January, 20X1: Inventory in process, January 1, 50%
Question:
Given the second process in a two-process manufacturer for January, 20X1:
Inventory in process, January 1, 50% completed …………. 10,000 units
Completed and transferred out of process in January ……… 40,000 units
Started into process in January ……………………………. 50,000 units
Inventory in process, January 31, 30% completed ……………………???
Direct-material costs, January 1 inventory ……………………... $ 40,000
Direct-material costs, current costs ……………………………. $120,000
Conversion costs, January 1 inventory ………………………… $ 30,000
Conversion costs, current costs ………………………………. $246,000
Transferred-in costs, January 1 inventory ……………………… $ 50,000
Transferred-in costs, current costs ……………………………. $250,000
Conversion costs are incurred uniformly during the process, while direct material is added when units are 40% complete.
Assuming Weighted average, what is the dollar valuation of the units transferred out for the month?
Step by Step Answer:
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta