Holton Tool Company has two departments, assembly and finishing. The assembly department takes purchased parts and assembles
Question:
Holton Tool Company has two departments, assembly and finishing. The assembly department takes purchased parts and assembles the final product. The finishing department performs testing and adds other materials and packages the product. Direct materials are added at the end of the process in the finishing department. The following summarizes the finishing department’s operations for the month of July.
Number of Units
Work-in-process, June 30, 50% complete for conversion costs.....3,000
Transferred in during July .....................28,000
Completed during July .......................27,000
Work-in-process, July 31, 50% complete for conversion costs .....4,000
Costs
Work-in-process, June 30 (transferred-in costs: $40,000;
conversion costs: $30,000) ......................$ 70,000
Transferred-in from assembly department during July .......150,000
Direct materials added during July ..................60,000
Conversion added during July ...................80,000
Total to account for .......................$360,000
Required
Calculate each of the following amounts for the finishing department using the weighted-average process costing method:
1. Equivalent units of transferred-in direct materials and conversion.
2. Unit costs of transferred-in, direct materials, and conversion.
3. Cost of goods completed and transferred out during July.
4. Cost of work-in-process inventory at July 31.
Step by Step Answer:
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins