Marc Industries manufactures ignitors for sale in the thermos heating renovation industry. From start to finish, the
Question:
Marc Industries manufactures ignitors for sale in the thermos heating renovation industry. From start to finish, the products need to go through two divisions, assemble and testing. Marc uses the weighted-average method for its two divisions.
Following is information for Division B for the month of September:
Physical Units
WIP, Oct 1 2,600 (30% complete)
Completed and transferred in from Division A 12,000 units
WIP, Oct 31 3,200 (20% complete)
Oct 1 Costs Added
WIP in Oct Total
Transferred in $25,740 $120,000 $145,740
Direct materials 8,190 48,000 56,190
Direct labour 20,904 300,240 321,144
Overhead 6,864 100,080 106,944
$61,698 $568,320 $630,018
In Division B, direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. There is no spoilage of the products.
Required:
a) Calculate the total cost of the units completed and transferred out of Division B in Oct (rounded) using the weighted-average method.
Taxation Of Individuals And Business Entities 2021
ISBN: 9781260247138
12th Edition
Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham