Perfect Parts manufactures a part used in building airplanes. They have three departments (machining, assembly, and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Perfect Parts manufactures a part used in building airplanes. They have three departments (machining, assembly, and testing). They use Process Costing (FIFO method). On July 31, they had the following costs in WIP-Assembly: Machining $ 265,750 11,250 Assembly Material 78,125 $ 355,125 Assembly Conversion There were 1,250 of the parts on hand at 7/31. The parts were 80% complete wrt Assembly Materials costs and 50% complete wrt Assembly Conversion costs. During August, 10,000 parts were transferred in from the Machining department. The cost of the parts transferred in was $2,009,250 1,500 parts were not yet complete on August 31st. These parts were 100% complete wrt Assembly Materials costs and 60% complete wrt Assembly Conversion costs. Total manufacturing costs incurred in the Assembly department in August were: Material $ 112,125 Conversion 1,190,625 $1,302,750 1. What was the cost per equivalent unit for August for transferred in costs from Machining? (Round to two decimals) 2. What was the cost per equivalent unit for August for Assembly Material? (Round to two decimals) 3. What was the cost per equivalent unit for August for Assembly Conversion? (Round to two decimals) 4. What was the total cost of the parts transferred to WIP – Testing in August) (Do NOT round your unit costs when calculating total costs transferred out) 5. What was the total cost of the parts in ending inventory at 8/31? (Do NOT round your unit costs when calculating cost in ending inventory) 6. Assuming the cost of the testing the part is $15 per unit, what's Perfect Part's total costs per unit to make the airplane part? (HINT: You should be looking at the cost of the units transferred out) Perfect Parts manufactures a part used in building airplanes. They have three departments (machining, assembly, and testing). They use Process Costing (FIFO method). On July 31, they had the following costs in WIP-Assembly: Machining $ 265,750 11,250 Assembly Material 78,125 $ 355,125 Assembly Conversion There were 1,250 of the parts on hand at 7/31. The parts were 80% complete wrt Assembly Materials costs and 50% complete wrt Assembly Conversion costs. During August, 10,000 parts were transferred in from the Machining department. The cost of the parts transferred in was $2,009,250 1,500 parts were not yet complete on August 31st. These parts were 100% complete wrt Assembly Materials costs and 60% complete wrt Assembly Conversion costs. Total manufacturing costs incurred in the Assembly department in August were: Material $ 112,125 Conversion 1,190,625 $1,302,750 1. What was the cost per equivalent unit for August for transferred in costs from Machining? (Round to two decimals) 2. What was the cost per equivalent unit for August for Assembly Material? (Round to two decimals) 3. What was the cost per equivalent unit for August for Assembly Conversion? (Round to two decimals) 4. What was the total cost of the parts transferred to WIP – Testing in August) (Do NOT round your unit costs when calculating total costs transferred out) 5. What was the total cost of the parts in ending inventory at 8/31? (Do NOT round your unit costs when calculating cost in ending inventory) 6. Assuming the cost of the testing the part is $15 per unit, what's Perfect Part's total costs per unit to make the airplane part? (HINT: You should be looking at the cost of the units transferred out)
Expert Answer:
Answer rating: 100% (QA)
1 UNITS TO BE ACCOUNTED FOR Physical Units Work in process July 31 1250 Started into production duri... View the full answer
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
Posted Date:
Students also viewed these accounting questions
-
The Studley Company adds direct materials at the beginning of the manufacturing process. On May 1, 2,200 units were in process. All direct materials had been added and they were 40 % complete as far...
-
The following values apply for a part used in their production (purchased from external suppliers): D = 12,500 Q = 250 P = $45 C = $4.50 Required: 1. For Thomas, calculate the ordering cost, the...
-
DeMarcus Industries manufactures a part used in several models of its automatic dishwashers Monthly production costs for 5.000 units are Direct...
-
Super Slushie charges $6.50 for a medium slushie and $9 for a large slushie. Their total net marketing contribution is $28,000 per week. They want to raise the price of each slushie 12.5% next month...
-
What is a third-party payer? What are the most common entities that fall into the category of third-party payer?
-
Researchers have long been interested in the relationship between economic factors and presidential elections. The PresApproval.dta data set includes data on presidential approval polls and...
-
Find the = 0.01 critical value for the chi-square statistic with 5 degrees of freedom.
-
Consider an experiment with four groups, with eight values in each. For the ANOVA summary table below, fill in all the missing results: Mean Degrees of Sum of Square Source Freedom Squares (Variance)...
-
Economic recession is defined as a period of overall economic downturn, high unemployment, a drop in the stock market's value, and a decline in the housing market. A union plays a dominant role in a...
-
The Protek Company is a large manufacturer and distributor of electronic components. Because of some successful new products marketed to manufacturers of personal computers, the firm has recently...
-
1. What is Nordstroms segmentation strategy? Who does it serve? 2. With regard to its core segment, what does Nordstrom offer its customers? 3. Using the Porter model, which generic business-level...
-
What is the slowest speed you can swing a 2 . 5 kg ball attached to a 2 . 0 m rope in a vertical circle?
-
Professor Stenson is examining the effects of color on patients' anxiety level. She randomly assigns patients to either a room painted white or a room painted black, and then records their blood...
-
Donald owns a landscaping business (not a specified service) as a sole proprietor. In 2021, the business had gross business income of $380,000, and business expenses of $92,000, which included wages...
-
Carla Vista owes Dole a $620000, 12%, three-year note dated December 31, 2021. Carla Vista has been experiencing financial difficulties, and still owes accrued interest of $74400 on this note at...
-
Early in your audit of Kimberly Corporation, you note that the factory supervisor approves time records for hours worked and hourly rates and also distributes the payroll checks. Required: 1. Design...
-
In accordance with DAU Directive 704, you are required to do your own work and not use, obtain or provide any unauthorized assistance on this exam.
-
Listed below are common types of current liabilities, contingencies, and commitments: a. Accounts payable b. Bank loans and commercial paper c. Notes payable d. Dividends payable e. Sales and excise...
-
Reggie Wilmore has just started a new businessbuilding and installing custom garage organization systems. Reggie builds the cabinets and work benches in his workshop, then installs them in clients...
-
During March, Hanks Manufacturing started and completed 30,000 units. In beginning work in process, there were 5,000 units 60 percent complete with respect to conversion costs. Materials are added at...
-
Starling Co. manufactures one product with a selling price of $18 and variable cost of $12. Starlings total annual fixed costs are $38,400. If operating income last year was $28,800, what was the...
-
What are the advantages of resource leveling?
-
Which of the following statements is false? A. The highest need in Maslows pyramid is called selfactualization. B. Most people today prefer managers who follow Theory X versus Theory Y. C. Herzberg...
-
Some project managers like to assess team performance by using a technique known as MBWA, which stands for _______________. A. management by wondering aloud B. management by wandering around C....
Study smarter with the SolutionInn App