Lawncraft, Inc. manufactures wooden lawn furniture using an assembly-fine process. All direct materials are introduced at the
Question:
Debit side:
June 1 balance: 200 units, 25% complete as to conversion, cost $18,000•
Production started: 800 units
Direct material used during
June: $43,000 June conversion cost $30 000
Credit side:
Production completed: 600 units
'Supplementary records revealed direct-material cost of S12,000 and conversion cost of 56,000. Conversations with manufacturing personnel revealed that the ending work-in-process inventory was 75 percent complete as to conversion.
Required:
1. Determine the number of units in the June 30 work-in-process inventory.
2. Calculate the cost of goods completed during June and prepare the appropriate journal entry to record completed production.
3. Determine the cost of the June 30 work-in-process inventory.
4. Briefly explain the meaning of equivalent units. Why are equivalent units needed to properly allocate costs between completed production and production in process?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078025662
10th edition
Authors: Ronald Hilton, David Platt
Question Posted: