Cheetah Accessories uses four departments to produce handles for kitchen cabinets: Forming requires mixing the raw...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Cheetah Accessories uses four departments to produce handles for kitchen cabinets: Forming requires mixing the raw materials, Moulding, Spraying and Drying. After leaving the Drying Department, the handles are packaged and sent to the Finished Goods warehouse for shipment to retail outlets. The following data relates to the Spraying Department for the month of June: During the month, 2,000 handles valued at $275 each were transferred from the Molding Department to the Spraying Department. Other production costs incurred during the month are summarized as follows: Direct Materials Added $171,000 Direct Manufacturing Wages $425,600 Manufacturing Overhead $205,200 Process inspection occurs during the process and normally no losses are expected at this stage. However, during the month 200 handles were rejected at inspection. Rejected units from this department are sold as scrap at $400 each. These units had reached the following degree of completion: Transfer from Moulding Direct material added Conversion costs 100% 80% 50% During June, 1,400 handles were completed, packaged and transferred to Finished Goods. Work-in-progress at the end of June had reached the following degree of completion: Transfer from Moulding 100% 60% Materials added Conversion costs 40% Materials added and conversion costs are incurred uniformly throughout each process. There were no incomplete units in the Spraying Department at the beginning of the period. Required: (a) Compute the equivalent units and cost per equivalent units for direct materials (From Moulding & Direct materials added) and conversion costs. (10 marks) (b) Compute the: total cost of the handles completed and transferred out of the Drying Department cost of the unexpected losses ▪ cost of ending work in process inventory in the Spraying Department (3 marks) Post all transactions to the Work in Process Inventory - Spraying Department T-account. What is the ending balance? (5 marks) (d) Prepare the journal entries for the use of total direct materials, direct labour incurred, manufacturing overhead applied and the cost of the units completed and transferred out to the Drying Process. (5 marks) (e) Given that 25% of the unexpected losses were as a result of pilferage, Accessories true loss for the Spraying Department. calculate Chrome (2 marks) Cheetah Accessories uses four departments to produce handles for kitchen cabinets: Forming requires mixing the raw materials, Moulding, Spraying and Drying. After leaving the Drying Department, the handles are packaged and sent to the Finished Goods warehouse for shipment to retail outlets. The following data relates to the Spraying Department for the month of June: During the month, 2,000 handles valued at $275 each were transferred from the Molding Department to the Spraying Department. Other production costs incurred during the month are summarized as follows: Direct Materials Added $171,000 Direct Manufacturing Wages $425,600 Manufacturing Overhead $205,200 Process inspection occurs during the process and normally no losses are expected at this stage. However, during the month 200 handles were rejected at inspection. Rejected units from this department are sold as scrap at $400 each. These units had reached the following degree of completion: Transfer from Moulding Direct material added Conversion costs 100% 80% 50% During June, 1,400 handles were completed, packaged and transferred to Finished Goods. Work-in-progress at the end of June had reached the following degree of completion: Transfer from Moulding 100% 60% Materials added Conversion costs 40% Materials added and conversion costs are incurred uniformly throughout each process. There were no incomplete units in the Spraying Department at the beginning of the period. Required: (a) Compute the equivalent units and cost per equivalent units for direct materials (From Moulding & Direct materials added) and conversion costs. (10 marks) (b) Compute the: total cost of the handles completed and transferred out of the Drying Department cost of the unexpected losses ▪ cost of ending work in process inventory in the Spraying Department (3 marks) Post all transactions to the Work in Process Inventory - Spraying Department T-account. What is the ending balance? (5 marks) (d) Prepare the journal entries for the use of total direct materials, direct labour incurred, manufacturing overhead applied and the cost of the units completed and transferred out to the Drying Process. (5 marks) (e) Given that 25% of the unexpected losses were as a result of pilferage, Accessories true loss for the Spraying Department. calculate Chrome (2 marks)
Expert Answer:
Answer rating: 100% (QA)
Answera Quantity Schedule Items Material Units received from Molding Dep... View the full answer
Related Book For
Posted Date:
Students also viewed these organizational behavior questions
-
Hamstein uses four departments to produce plastic handles for screwdrivers: Mixing, Molding, Drying, and Assembly. Hamstein's Drying Department requires no direct materials. Conversion costs are...
-
Sidchrome uses four departments to produce plastic handles for screwdrivers: Mixing, Molding, Drying, and Assembly. Sidchrome's Drying Department requires no direct materials. Conversion costs are...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
You are given the following as it relates to the price of a pound of flour in Adam Island, 2016 to 2022: 2016-$1.35 2017 - $1.50 2018 - $1.65 2019 - $1.85 2020 - $2.15 2021 - $2.00 2022 - $2.10 Using...
-
Fret well Realty, organized August 1, 2013, is owned and operated by Brad Fret well. How many errors can you find in the following financial statements for Fret well Realty, prepared after its first...
-
a) How do firewalls and antivirus servers work together? b) Are antivirus servers limited to looking for viruses? Explain. c) What may the antivirus server do after it performs filtering? d) What...
-
The adjusted trial balances of CAS, Inc., at March 31,2010, and March 31, 2011, include these amounts: Requirement 1. Compute the amount of supplies expense, salary expense, and service revenue CAS,...
-
Jerry Stevenson is the manager of a medical clinic in Scottsdale, AZ. He wants to analyze patient data to identify high-risk patients for cardiovascular diseases. From medical literature, he learned...
-
How do power dynamics and social networks within organizations influence decision-making processes, resource allocation, and interdepartmental collaboration ?
-
TipTop Flight School offers flying lessons at a small municipal airport. The school's owner and manager has been attempting to evaluate performance and control costs using a variance report that...
-
Select two countries (excluding the United States) and prepare a short report describing their basic Internet infrastructure. Are they public or commercial? How and where do they connect to backbones...
-
Use a diagram of a competitive labor market to compare the equilibrium effects and incidence of a per-unit tax on earnings when the buyer of the labor services is competitive compared to when it is a...
-
Every few months, The Economist publishes its Big Mac Index. Using the current exchange rates, it compares the U.S.-dollar price of Big Macs in several countries. It then concludes that countries in...
-
The diagram below shows the demand for foreign currency and the supply of foreign currency. The equilibrium exchange rate is e * . a. Suppose the Bank of Canada decides to fix the exchange rate at e...
-
What are the ways to test the difference between the means when the population is not normally distributed?
-
What is Financial Marketing Theory?
-
Cultural diversity in the workplace is different. How can people with different cultural backgrounds become unity? Provide an example of a business based on diversity industry?
-
Illini Company, Inc. Balance Sheet as of 12/31/20X0 Assets Current Assets: Cash $1,500,000 Accounts receivable, net 18,000 Inventory 50,000 Total current assets 1,568,000 Equipment 90,000 Goodwill...
-
One of a Kind Designs is a custom dressmaker that specializes in wedding gowns. The following table contains events that occur in the manufacture and sale of gowns by One of a Kind Designs. Put the...
-
Clarke Corp. manufactures radiation-shielding glass panels. Suppose Clarke is considering spending the following amounts on a new TQM program: Strength-testing one item from each batch of panels . ....
-
Frame Pro manufactures picture frames. Suppose the company's March records include the items described below. What is Frame Pro's total manufacturing overhead cost in March? Company president's...
-
The area under the standard normal curve to the right of z = 0.51 is 0.6950. What is the area to the left of z = 0.51?
-
The area under the standard normal curve to the left of z = 1.75 is 0.0401. What is the area to the right of z = 1.75?
-
The area under the standard normal curve between z = 1.32 and z = 1.82 is 0.0590. What is the area between z = 1.82 and z = 1.32?
Study smarter with the SolutionInn App