Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington manufactures
Question:
Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington manufactures the carts in two assembly departments: Department A and Department B. All three models are processed initially in Department A, where all material is assembled. The X-10 model is then transferred to finished goods. After processing in Department A, the X-20 and X-40 models are transferred to Department B for final assembly, and then transferred to finished goods.
There were no beginning work-in-process inventories on April 1. Data for April are shown in the following table. Ending work in process is 30 percent complete in Department A and 50 percent complete in Department B. Conversion costs are allocated based on the number of equivalent units processed in each department.
| Total | X-10 | X-20 | X-40 |
Units started |
| 500 | 300 | 200 |
Units completed in Department A |
| 400 | 260 | 180 |
Units completed in Department B |
|
| 225 | 165 |
Materials | $450,000 | $75,000 | $135,000 | $240,000 |
Conversion costs |
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|
|
Department A | $264,000 |
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Department B | 42,000 |
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Total conversion costs | $306,000 |
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a. What is the unit cost of each model transferred to finished goods in April?
b. Wat is the balance of work-in-process inventory on April 30 for Department A? Department B?
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold