Bob s Trains produces wooden toy trains and uses process costing. Each train passes through three processes
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Question:
Bobs Trains produces wooden toy trains and uses process costing. Each train
passes through three processescutting assembly, and finishing. In the Assembly
Department, materials are added when the trains are complete, and conversion
costs are added evenly throughout the process. Production information for the
Assembly Department for July follows:
Ending Work in Process, conversion costs complete
Beginning Work in Process, conversion costs complete
Units started during July
Units in Work in Process, July
Units in Work in Process, July
Conversion costs in beginning Work in Process $
Transferredin costs in beginning Work in Process $
Cost of direct materials in beginning WIP $
Conversion costs added during July $
Direct material cost added during July $
Transferredin costs added during July $
a Calculate the equivalent units for the Assembly Department for July.
b Identify the nature of transferredin costs and how these costs differ from costs
in the beginning Work in Process inventory as it relates to the Assembly
Department.
Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 9780135628478
17th Edition
Authors: Srikant M. Datar, Madhav V. Rajan
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