The textile company produces the article PCR5, through two production departments A and B. to account for
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Question:
The textile company produces the article PCR5, through two production departments A and B. to account for its production costs, it uses the standard cost system. The standard specification time presents the following information for one unit (5 P).
Materials | Department A | Department B |
With 001 | 550u at $130 each | |
With 002 | 15u at $100 each | |
With 003 | 20u at $110 each | |
With 004 | 15u at $110 each |
The following information has been received from production departments A and B at the end of the period.
Department 1 | Department 2 | |||
Units completed and transferred | 2000 | 2000 | ||
Units in process | 600 | 90% with 001 | 550 | 70% with 003 |
60% with 002 | 30% with 004 |
Details of materials used
Materials | Department A | Department B |
With 001 | 35000u a 145c/u | |
With 002 | 20000u a 120c/u | |
With 003 | 25000u a 140c/u | |
With 004 | 15000u a 130c/u |
Is required:
Required: Account for the purchase and use of materials, using the standard Kardex, Kardex Real and VCMD method.
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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