Required: Compute the cost of goods transferred out and the ending inventory for July using the FIFO
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Compute the cost of goods transferred out and the ending inventory for July using the FIFO method.
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Devereaux Cycles makes three models of scooter: Commuter, Sport, and X-treme. The scooters are produced in four departments: Assembly, Detailing, Customization, and Packaging. All three models are started in Assembly, where all materials are assembled. The Commuter is then sent to Packaging, where it is packaged and transferred to finished goods inventory. The Sport is then transferred to Detailing. Once the detailing process is completed, the Sport models are transferred to Packaging and then finished goods. The X- Treme model is assembled and then transferred to Customization, and then Packaging. When packaged, it is transferred to finished goods. Data for February are shown in the following table. Conversion costs are allocated based on the number of units processed in each department. No work-in-process inventories are maintained in any department. Materials Conversion costs: Assembly Detailing Customization Packaging Total conversion costs Commuter Sport X-Treme Cost Per Unit *** $ Required: b. What is the cost per unit transferred to finished goods inventory for each of the three models in February? Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. $ Total $ 3,715,000 $ $ 2,675,000 427,500 559,000 367,500 $ 4,029,000 Commuter (1,200 units) $ 1,455,000 Sport (900 units) $ 1,365,000 X-Treme (400 units) $ 895,000 Devereaux Cycles makes three models of scooter: Commuter, Sport, and X-treme. The scooters are produced in four departments: Assembly, Detailing, Customization, and Packaging. All three models are started in Assembly, where all materials are assembled. The Commuter is then sent to Packaging, where it is packaged and transferred to finished goods inventory. The Sport is then transferred to Detailing. Once the detailing process is completed, the Sport models are transferred to Packaging and then finished goods. The X- Treme model is assembled and then transferred to Customization, and then Packaging. When packaged, it is transferred to finished goods. Data for February are shown in the following table. Conversion costs are allocated based on the number of units processed in each department. No work-in-process inventories are maintained in any department. Materials Conversion costs: Assembly Detailing Customization Packaging Total conversion costs Commuter Sport X-Treme Cost Per Unit *** $ Required: b. What is the cost per unit transferred to finished goods inventory for each of the three models in February? Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. $ Total $ 3,715,000 $ $ 2,675,000 427,500 559,000 367,500 $ 4,029,000 Commuter (1,200 units) $ 1,455,000 Sport (900 units) $ 1,365,000 X-Treme (400 units) $ 895,000
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To calculate the cost per unit transferred to finished goods inventory for each of the three scooter models we need to allocate the total conversion costs based on the number of units processed in eac... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
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