Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing....
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Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra plastic. The following information is available for the month of January: January 1 Quantity (pounds) Cost None Work-in-Process Inventory Molding department Finishing department 5,000 $ 15,000 Costs of Production Molding department Finishing department January 31 Quantity (pounds) Cost None 2,000 The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end of January. Costs of production for January follow: Direct Materials Conversion $ 90,000 $ 450,000 80,290 ? The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process costing. Required: 1. Prepare a production cost report for the molding department. 2. Prepare a production cost report for the finishing department. Required 1 Required 2 Prepare a production cost report for the molding department. (Round "Cost per EU" answers to 2 decimal places. Negative amo indicated by minus sign.) Molding Department Input: Beginning WIP Direct materials Conversion Units started (lbs) Total to account for Output: Units finished or trans-out (lbs) Ending WIP Direct materials Conversion Total accounted for (lbs) Total equivalent units Beginning WIP Current costs Total Divide by equivalent units FIFO Cost per EU Finished goods Prior period costs in Beginning WIP Current period cost to complete Beg WIP Cost of units started and finished Total Ending WIP Direct materials Conversion Total costs accounted for Production Information Physical Units 50,000 50,000 50,000 50.000 Direct Material Completion Percentage 450,000 $ 450,000 S 50,000 S 9.00 S Conversion Units Cost Determination lbs lbs lbs lbs 100 100 lbs 50,000 lbs 50,000 lbs < Required 1 %6 %6 % % 90,000 90,000 S 50,000 1.80 $ Total $ 540,000 540,000 10.80 Units Completed and Transferred Out 0 2,000 X 800 X 2,800 FIFO Equivalent Units Direct Materials Required 2 > 50,000 X Cost Assignment Units in Ending WIP Inventory 50,000 Conversion S 50,000 X 50,000 Total 0 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a production cost report for the finishing department. (Round "Cost per EU" answers to 2 decimal places. Negative amounts should be indicated by minus sign.) Finishing Department Input: Beginning WP Direct materials Conversion Units started or trans-in Total to account for Output: Units finished or trans-out Ending WP Direct materials Conversion Total accounted for Total equivalent units Beginning WP Current costs Total Divide by equivalent units FIFO Cost per EU Finished goods Prior period costs in Beginning WP Current period cost to complete Beg WP Direct materials Conversion Units started and finished Total Ending WP Trans-in Direct materials Conversion Total costs accounted for Production Information Physical Units S 5,000 50,000 55,000 5,000 50,000 X 55,000 Trans-in Completion Percentage 50,000 units 80% Equiv units Equiv units 40 % % Unit Cost Determination Materials Conversion 450,000 X 0 $ 450,000 S 50000 X units % % % 1% 0 % 60 % < Required 1 Completed and Trans- Out Transferred- in Costs 0 90,000 X 540,000 90,000 $ 540,000 50,000 > S Total S 0 0.00 Cost Assignment Ending Work in Process Required 2 > 0 FIFO Equivalent Units Direct Materials S S 5,000 * 5,000 Total 0 0 Conversion 2,000 3,000 X 5,000 Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department removes the plastic frame from the mold and strips the edges of the frames of extra plastic. The following information is available for the month of January: January 1 Quantity (pounds) Cost None Work-in-Process Inventory Molding department Finishing department 5,000 $ 15,000 Costs of Production Molding department Finishing department January 31 Quantity (pounds) Cost None 2,000 The WIP Inventory in the finishing department is estimated to be 40% complete for conversion both at the beginning and end of January. Costs of production for January follow: Direct Materials Conversion $ 90,000 $ 450,000 80,290 ? The molding department started 50,000 pounds of product in January. The firm uses the FIFO method of process costing. Required: 1. Prepare a production cost report for the molding department. 2. Prepare a production cost report for the finishing department. Required 1 Required 2 Prepare a production cost report for the molding department. (Round "Cost per EU" answers to 2 decimal places. Negative amo indicated by minus sign.) Molding Department Input: Beginning WIP Direct materials Conversion Units started (lbs) Total to account for Output: Units finished or trans-out (lbs) Ending WIP Direct materials Conversion Total accounted for (lbs) Total equivalent units Beginning WIP Current costs Total Divide by equivalent units FIFO Cost per EU Finished goods Prior period costs in Beginning WIP Current period cost to complete Beg WIP Cost of units started and finished Total Ending WIP Direct materials Conversion Total costs accounted for Production Information Physical Units 50,000 50,000 50,000 50.000 Direct Material Completion Percentage 450,000 $ 450,000 S 50,000 S 9.00 S Conversion Units Cost Determination lbs lbs lbs lbs 100 100 lbs 50,000 lbs 50,000 lbs < Required 1 %6 %6 % % 90,000 90,000 S 50,000 1.80 $ Total $ 540,000 540,000 10.80 Units Completed and Transferred Out 0 2,000 X 800 X 2,800 FIFO Equivalent Units Direct Materials Required 2 > 50,000 X Cost Assignment Units in Ending WIP Inventory 50,000 Conversion S 50,000 X 50,000 Total 0 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a production cost report for the finishing department. (Round "Cost per EU" answers to 2 decimal places. Negative amounts should be indicated by minus sign.) Finishing Department Input: Beginning WP Direct materials Conversion Units started or trans-in Total to account for Output: Units finished or trans-out Ending WP Direct materials Conversion Total accounted for Total equivalent units Beginning WP Current costs Total Divide by equivalent units FIFO Cost per EU Finished goods Prior period costs in Beginning WP Current period cost to complete Beg WP Direct materials Conversion Units started and finished Total Ending WP Trans-in Direct materials Conversion Total costs accounted for Production Information Physical Units S 5,000 50,000 55,000 5,000 50,000 X 55,000 Trans-in Completion Percentage 50,000 units 80% Equiv units Equiv units 40 % % Unit Cost Determination Materials Conversion 450,000 X 0 $ 450,000 S 50000 X units % % % 1% 0 % 60 % < Required 1 Completed and Trans- Out Transferred- in Costs 0 90,000 X 540,000 90,000 $ 540,000 50,000 > S Total S 0 0.00 Cost Assignment Ending Work in Process Required 2 > 0 FIFO Equivalent Units Direct Materials S S 5,000 * 5,000 Total 0 0 Conversion 2,000 3,000 X 5,000
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Answer 1 Molding Department Physical units Material Conversion Work in Process Beginning 0 Started during the period 50000 Total Units to account for 50000 Work in Process Beginning 0 0 0 Units starte... View the full answer
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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